Contract of Lease of Hacienda



This Contract of Lease made and entered into by and between:

______, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, (hereinafter referred to as the “LESSOR”),

– and –

_____________, of legal age, Filipino, (single / married / widow), and a resident of _____________, Philippines, (hereinaft er referred to as the “LESSEE”);


WHEREAS, the LESSOR is the absolute and registered owner in fee simple of a parcel of land, situated in the _____________, Philippines, and more particularly described as follows:

(Technical Description of Property)

WHEREAS, the LESSEE desires to lease the above-mentioned parcel of agricultural land with a total plantable area of approximately __________________________ (_________) hectares which shall be the basis for the computation of the rentals, under the terms and conditions hereinafter provided.

NOW, THEREFORE, for and in consideration of the terms and conditions mutually agreed upon by the parties, the LESSOR, his heirs, successors and assigns, hereby convey of way of lease unto the LESSEE, his heirs, successors and assigns, the above-described parcel of land, including the improvements found and existing thereon, subject to the following terms, conditions and stipulations, to wit:

PERIOD OF THE LEASE: This contract of lease shall be for a period of _____________ (______) agricultural sugar crop-years, to commence with sugar crop-year (C.Y.) _____________ up to and including sugar crop year (C.Y.) _____________, provided further that the LESSEE shall harvest only _____________ times during the term of this lease, otherwise the LESSEE shall pay rental pro rata based on the period and hectarage without a need of court order.

RENTAL: The consideration of this lease contract shall be an annual lease rental of _____________ (_____) “LKG” per hectare computed on the basis of actual hectarage planted to sugarcanes or the amount is __________________________ (P_____________) per hectare. The total hectarage is _____________ therefore the total yearly rental is __________________________ (P_____________). The sum of __________________________ (P_____________) will be the total rental for this contract.

PAYMENT OF THE RENTAL: The sum of __________________________ (P_____________) will be due upon the signing of the contract.

TURN-OVER OF LEASED PROPERTY TO LESSEE: The LESSEE shall permit the LESSOR or its authorized representatives to take gradual possession of the leased premises as the C.Y. _____________ standing crops are being harvested by the LESSEE to enable the LESSOR to propagate and cultivate the crops for C.Y. _____________. The LESSOR shall deliver full physical possession of the leased premises to the LESSEE upon the termination of this contract and that all ratoon crops found therein shall inure to the benefit of the LESSOR.

IMPROVEMENTS AND ALTERATIONS: The LESSEE may with the written consent of the LESSOR build houses and other structures in the leased premises which however shall not exceed four (4) units for use of the LESSEE’s or his management team to include but not limited to the encargado and staff and if the LESSEE so desires, structures for a small poultry, piggery or the like;

The LESSEE is also authorized to alter the fields’ divisions, roads, canals including its culverts provided that such alteration will not result in the diminution of the plantable area;

RIGHT OF INSPECTION: Since the LESSOR will be operating a pumping station for the water needs of her other farms, parties agree that the LESSOR or her duly authorized representative shall have free access at all times to the leased premises for the sole purpose of operating said pumping station and the water-ways traversing through the leased premises;

REAL ESTATE TAXES, ETC.: The real estate taxes and other land assessments over the leased premises shall be for the exclusive account of the LESSOR while this lease is in effect;

TERMINATION DUE TO FORCE MAJEURE, ETC.: This contract was entered into by the parties in good faith and under the assumption that no event or circumstances will obtain that will make it extremely difficult or impossible for the LESSEE to continue planting and cultivating the leased premises as intended under this contract, therefore, in the event that the LESSEE feels that his life is in danger, and/or that the peace and order situation in the locality or region where the aforesaid parcel of land is found or situated deteriorates to such an extent that it would no longer be either feasible or possible to still plant or cultivate sugarcane over the leased premises, or where the prices of sugar make the operation of the farm no longer profitable, then the herein parties are agreed that the LESSEE may preterminate this lease by giving the LESSOR at least THREE (3) months prior notice, provided that the LESSEE may still harvest his standing sugarcane crops and the LESSOR is paid the pertinent rentals due thereon;

WARRANTY, RIGHT OF WAY. The LESSOR hereby agree, by these presents that she shall provide and guaranty the necessary right-of-way to the benefit of the LESSEE, including use and access to common roads and other hacienda facilities and that the LESSOR further warrants the peaceful possession and occupation of the LESSEE over said parcels of lands or from eviction thereof.

AGRICULTURAL PRODUCT. That the LESSEE shall devote the said parcel of land, subject matter of this contract, to the cultivation of sugar cane or such other agricultural products he may deem suitable and financially viable and shall be free to introduce therein whatever improvements he may deem proper and convenient, provided that upon the termination of this contract, all improvements introduced therein by the LESSEE shall remain and will inure to the benefit of the LESSOR.

MISCELLANEOUS. That in the event that any provisions of Rep. Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law of 1988, shall cover or be implemented in the leased premises or any portion thereof, the rental due shall be reduced in proportion to the area actually being occupied by the LESSEE;

IN WITNESS WHEREOF, the parties have hereunto set their hands this _____________ at _____________, Philippines.



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