Lease Hire Agreement Template for Pakistan

The Lease Hire Agreement serves as a critical legal instrument in Pakistani business and property transactions, establishing the framework for leasing arrangements across various sectors. This document type is essential when one party (lessor) agrees to grant another party (lessee) the right to use and possess property or assets for a specified period in exchange for regular payments. The agreement must comply with Pakistani legal requirements, including the Transfer of Property Act 1882, Contract Act 1872, and relevant provincial legislation. The document typically includes detailed provisions on rental terms, maintenance obligations, insurance requirements, and default remedies. When drafting a Lease Hire Agreement, particular attention must be paid to local registration requirements, stamp duty obligations, and any applicable Islamic finance principles, as Pakistan operates under a dual legal system incorporating both common law and Shariah principles.

1. Parties: Identification and details of the lessor and lessee, including full legal names, addresses, and registration details if companies

2. Background: Context of the lease arrangement and brief description of the property/asset being leased

3. Definitions: Definitions of key terms used throughout the agreement

4. Lease Grant: Formal grant of the lease and description of the leased property/asset

5. Term and Renewal: Duration of the lease, commencement date, and renewal provisions

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and payment methods

7. Use of Property: Permitted use of the leased property and any restrictions

8. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

9. Insurance: Insurance requirements and responsibilities of each party

10. Utilities and Outgoings: Responsibility for utilities, taxes, and other operating expenses

11. Lessor's Covenants: Obligations and warranties of the lessor

12. Lessee's Covenants: Obligations and warranties of the lessee

13. Default and Remedies: Events of default and available remedies

14. Termination: Grounds for termination and consequences

15. Return of Property: Conditions and procedures for returning the leased property

16. Governing Law: Specification of Pakistani law as governing law

17. Dispute Resolution: Procedures for resolving disputes

18. Notices: Process for serving notices between parties

19. Execution: Signature blocks and execution formalities