Master Lease Agreement Template for Pakistan

The Master Lease Agreement serves as a foundational document for organizations engaging in multiple leasing transactions in Pakistan. It streamlines the leasing process by establishing a comprehensive framework that governs all subsequent individual lease arrangements, reducing negotiation time and ensuring consistency across transactions. This document is particularly valuable for financial institutions, leasing companies, and large corporations that frequently engage in leasing activities, whether through conventional or Islamic (Ijarah) structures. The agreement must comply with various Pakistani regulations, including the Contract Act 1872, Leasing Companies and Investment Banks Regulations 2002, and relevant State Bank of Pakistan directives. It typically includes provisions for both movable and immovable assets, incorporating necessary safeguards and compliance requirements under Pakistani law.

1. Parties: Identification of lessor and lessee with complete legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the master lease arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Lease Terms and Grant: Core leasing provisions, scope of the master agreement, and process for creating individual leases

5. Condition and Delivery: Terms regarding the condition, inspection, and delivery of leased assets

6. Rental Payments: Payment terms, schedules, method of payment, and late payment consequences

7. Security Deposit: Requirements and terms for security deposits, including return conditions

8. Use and Maintenance: Obligations regarding asset usage, maintenance responsibilities, and prohibited uses

9. Insurance: Insurance requirements, types of coverage, and claim procedures

10. Representations and Warranties: Standard representations and warranties from both parties

11. Events of Default: Definition of default events and consequences

12. Remedies: Available remedies for both parties in case of breach or default

13. Indemnification: Mutual indemnification obligations and procedures

14. Assignment and Subletting: Restrictions and conditions for assignment or subletting

15. Notices: Communication procedures and contact details

16. Governing Law and Jurisdiction: Choice of Pakistani law and jurisdiction provisions

17. Termination: Termination rights, procedures, and consequences