The Termination of Lease Contract is a crucial document used in Malaysian property transactions when parties mutually agree to end their lease arrangement before its natural expiration, or when terminating it at the end of its term. This document is essential in Malaysian business practice, particularly in situations where clear documentation of the lease termination is required for legal and administrative purposes. It falls under the governance of Malaysian property and contract law, including the National Land Code 1965 and Contracts Act 1950. The document typically includes key information such as party details, property information, termination date, settlement terms, and post-termination obligations. It serves to protect both parties' interests by clearly documenting the agreed terms of termination and preventing future disputes.
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1. Parties: Identification of the Landlord and Tenant, including full names, identification numbers, and addresses
2. Background: Reference to the original lease agreement, including its date, key terms, and property details
3. Definitions: Definitions of key terms used in the termination agreement
4. Termination Date: Clear statement of when the lease will terminate
5. Mutual Agreement: Statement that both parties agree to terminate the lease
6. Return of Premises: Terms regarding the handover of the property, including condition requirements
7. Settlement of Outstanding Amounts: Details of any remaining rent, utilities, or other payments due
8. Security Deposit: Terms for the return or application of the security deposit
9. Release and Discharge: Mutual release from future obligations under the original lease
10. Governing Law: Confirmation that Malaysian law governs the agreement
11. Execution: Signature blocks for all parties
1. Property Damage Claims: Section addressing any claims for damage to the property, used when there are ongoing disputes or known damage issues
2. Surviving Obligations: List of any obligations that continue after termination, used when specific terms need to survive
3. Confidentiality: Terms regarding confidentiality of the termination agreement, used in sensitive commercial situations
4. Dispute Resolution: Specific procedures for resolving disputes, used in complex commercial situations
5. Third Party Rights: Addressing rights of any third parties, used when there are guarantors or other involved parties
6. Renovation Restoration: Requirements for restoring any alterations made to the property, used when significant modifications were made
1. Property Details: Detailed description of the property including address and specific identifiers
2. Inventory List: List of any fixtures, fittings, or furniture included in the original lease
3. Condition Report: Current condition of the property at termination
4. Payment Schedule: Breakdown of any final payments, adjustments, or deposit returns
5. Handover Checklist: List of items to be checked during the final inspection and handover
6. Original Lease: Copy of the original lease agreement being terminated
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