Contract of Lease With Right of First Refusal: Legal Forms

CONTRACT OF
LEASE WITH RIGHT

OF FIRST REFUSAL
Legal Forms
Bajao
Famador
Taboada
Villavicencio
 QUESTION:
 Julia and Gerald came to your office and ask you to draft their CONTRACT OF LEASE over
a property which Gerald inherited from his parents in 1978. Julia wanted to be assured that in
the event that Gerald will sell the property, she will have the preferential right to buy the
property. Julia also wants that a provision allowing subleasing be included. But Gerald wanted
a limitation on the right of Julia to sublet the property as he does not want the sublessee to
conduct a food business in the property.
 Julia and Gerald ask you to include a provision on the payment of real estate taxes and the
improvements.
 A. What questions will you elicit from Julia and Gerald so that the Contract of Lease that you
will prepare will contain the terms and conditions that both of them want? Enumerate all the
questions.
 B. PREPARE THE CONTRACT OF LEASE.
QUESTION #1
 Question #1 – What is your purpose for coming here?
 Allow the client to talk and elaborate on their agreement

 This allows you to know what they truly agreed upon
QUESTION #2
 Question #2 – Where is the property located?
 Answer: Davao City
 This is relevant because it tells you whether the property is located within the Philippines
 If you are the notary public, is the property within your territorial jurisdiction?
 *How was the property acquired?*

 The client himself answered: Through inheritance.
 Follow up question: Are there co-heirs? Co-owners to the property?
QUESTION #3, #4, #5, #6
 Question #3 – Will the whole property be rented?
 Answer: Yes. The whole building.
 Question #4 – How will the property be used?

 Answer: Showroom
 Question #5 – How long will the rentals be?

 Answer: 10 years
 Question #6 – How much is the rent per month?

 Answer: 100,000 pesos
QUESTION #7, #8
 Question #7 – Aside from the Rentals, what else did you agree upon?
 Answer: Right of First refusal
 Allow them to elaborate because “Right of First Refusal” is not a layman’s term.
 Question #8 – How many days will they be given the Right of First Refusal?
 Answer: 15 days & a contract must result within 3 months.
 This informs the client that the right is not perpetual and there is a deadline within which the
buyer must decide.
QUESTION #9, #10
 Question #9 - Can the Lessee sub-lease the property?
 Answer: Yes.
 *In the video, the client herself expressed her intention to sub-lease the building.*
 Question #10 – Does the lessor agree to this?

 Answer: Yes.
 *In the video, the lessor himself mentioned a limitation to sub-lease. He disallows the
establishment of a restaurant or food stall within the building.*
QUESTION #11, #12
 Question #11 – Is there an agreement on the Improvements?
 Answer: Yes.
 The lessee agreed to leave behind improvements that become incorporated to the property
itself. However, movable properties still belong to the lessee.
 *They also agreed on the payment of Real Estate Taxes*
 Question #12 – Did you agree to all this?

 Answer: Yes
 There is a need to verify if there was truly a meeting of the minds on the terms.
 The clients are sweet hearts and agreed to everything.
QUESTION #13
 Question #13 – Is there anything else you would like to add?
 Answer: Free Parking Space
 Asking this as a final question is important.

 This allows your client to look back and rethink if there was anything they forgot to say. They
will expound on additional terms and agreements.
AMICABLE SETTLEMENT
(RECKLESS IMPRUDENCE
RESULTING IN LESS
SERIOUS PHYSICAL
INJURIES
II
Claudine is the owner and driver of vehicle 1. Piolo is the owner of vehicle 2 that was driven by Jericho
when the accident took place. The traffic investigation report showed that Claudine was driving at a very fast
speed and was attempting to overtake the vehicle driven by Jericho when Caludine’s vehicle bumped into the
vehicle driven by Jericho. As a result, the vehicle owned by Piolo and driven by Jericho was badly damaged.
Jericho suffered less serious physical injuries that necessitated his hospitalization and as a consequence, he
could not work for 1 month.
Claudine and Piolo and Jericho agreed to amicable settle the case. Piolo and Jericho will not file a case as
long as Claudine will shoulder the repairs of Piolo’s vehicle, shoulder the medical expenses of Jericho and pay
the salary of Jericho.
a. What questions will you elicit from Claudine, Piolo and Jericho to make the documents that are truly
reflective of their intentions.
b. PREPARE THE REQUIRED DOCUMENTS.

QUESTIONS #1
 What is your purpose of coming here?
Answer: We want our agreement formal- that Piolo and Jericho will not file a case against me,
provided that I will pay for the hospitalization of Jericho, repair of the multicab, as well as the
payment of the one month salary of Jericho
QUESTION #2
 Where are the other parties? Do they know about your plan of forging a settlement agreement
with them?
 Amicable Settlement- a contract; a consensual agreement

 Art. 1305- a contract is a meeting of the minds between two persons whereby one binds himself, with respect to
the other, to give something or to render some service.
QUESTION #3, #4, #5
 What happened?
 When did the accident happen?
 Where did the accident happen?
Answer: Claudine figured in an accident with a multicab driven by Jericho on February 20,
2021 in Daang Maharlika, Saguing, Makilala, Cotabato
QUESTION #6
 What are the vehicles involved here?
Answer: MITSUBISHI MIRAGE COLOR RED (PLATE NUMBER: BTS 9204)

PASSENGER VEHICLE MULTICAB COLOR BLUE (PLATE NUMBER: JN 7341)
QUESTION #7
 What are the terms you have agreed on?
Answer: That Claudine will pay for the hospital bills of Jericho
That Claudine will pay for the repair of the Multicab
That Claudine will pay the one month salary of Jericho
That Piolo and Jericho will not file a case for reckless imprudence resulting in less
serious physical injuries against Claudine
 Art. 1306- The contracting parties may establish such stipulations, clauses terms
and conditions as they may deem convenient, provided they are not contrary to
law, morals, good customs, public order or public policy.
QUESTION #8
 Are there any other terms you want to include?
Answer: That the parties authorize the PNP Makilala to release the vehicles involved which are
under their custody at the moment
That Piolo and Jericho reserve their right to institute a formal complaint in the proper court
against Claudine in case of breach
QUESTION #9
 Do you understand all of the terms of your agreement?
 Contracts are binding between the parties, their assigns and heirs (Art. 1311)
 Art. 1318- there is no contract unless the following requisites concur:
1. Consent of the contracting of the contracting parties;
2. Object certain which is the subject matter of the contract;
3. Cause of the obligation which is established
THANK YOU! 

Contract of Lease With Right of First Refusal: Legal Forms

Uploaded by

Copyright:

Available Formats

Contract of Lease With Right of First Refusal: Legal Forms

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Contract of Lease With Right of First Refusal: Legal Forms

Uploaded by

Copyright:

Available Formats

CONTRACT OF

LEASE WITH RIGHT

 Allow the client to talk and elaborate on their agreement

 How was the property acquired?

 Question #4 – How will the property be used?

 Question #5 – How long will the rentals be?

 Question #6 – How much is the rent per month?

 Question #10 – Does the lessor agree to this?

 Question #12 – Did you agree to all this?

 Asking this as a final question is important.

b. PREPARE THE REQUIRED DOCUMENTS.

 Amicable Settlement- a contract; a consensual agreement

Answer: MITSUBISHI MIRAGE COLOR RED (PLATE NUMBER: BTS 9204)

You might also like