Anonymous
1

Hi,

If a hotel establishment has a hotel part and a restaurant part, and the owner (first party) of the hotel only wants to lease out the restaurant part to a second party, what factors must the owner clarify with the second party? It would be helpful if anyone could share a sample agreement for such cases.

From India, Patnagarh
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Dear friend,

You may include the following points in the lease agreement:

a) Payment of the lease amount, who will pay, when they will pay? What will happen if the amount is not paid by the due date?

b) What is the advance amount that the lessor will take? Will it be refundable or non-refundable? If refundable, then on the expiry of the agreement, by what time period will the lessor return the advance?

c) For the cessation of the agreement, how many months' advance notice does either party need to give?

d) Clause related to the fulfillment of the laws related to labor laws, pollution control, etc.

e) Possession and further renewal of license under the Shops and Establishment Act or any other act.

f) Clause related to the employment of children or adolescent workers.

g) Clause related to possession of authorized or unauthorized firearms.

h) Clause related to the consumption of narcotics and other banned drugs.

i) Clause related to workplace injury, accidents, and the death of the employee arising out of the work.

j) Payment of electricity charges, water charges, or any other charges, etc.

k) Operation hours for the restaurant as prescribed by the local laws.

l) If a party is conducted, then the decibel limit for the noise.

m) Issues arising out of fire in the kitchen, explosion of the gas cylinder, short circuit, etc.

n) Clause related to the safety of women. These women could be customers or restaurant employees.

o) Clause related to parking space and allotment of parking slots for the restaurant owner, staff, and customers.

p) Clause related to damage to the property owing to the fracas with the customers or among the restaurant employees.

q) Clause related to the poaching of the staff employed by the hotel owner or vice versa.

r) Clause related to the serving of liquor as prescribed by the excise department.

s) Clause related to the disposal of wet waste and dry waste as prescribed by the local municipal corporation.

t) Clause related to the frequency of the pest control operations. Issues related to serving hygienic food to restaurant customers.

u) Clause related to the theft of the restaurant property.

v) Clause related to inspection by the various government agencies.

w) Clause related to the display of the signboard as per the norms of the local municipal corporation.

x) Clause related to serving food to the guest or occupants of the room of the hotel, how to handle the billing?

y) Clause related to the jurisdiction of the court under which disputes are to be settled.

z) Any other clause.

Thanks,

Dinesh Divekar

From India, Bangalore
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