NOTICE OF BREACH OF LOCK-IN PERIOD AND DEMAND FOR COMPENSATION
Date: __________
TO:
__________, __________
__________
FROM:
__________, __________
__________
SUBJECT: Breach of the lock-in period under the Lease of the Premises described below, and demand for the compensation the Lease provides for it.
Dear Sir / Madam,
1. THE LEASE AND THE PREMISES
1.2 In this notice, "the Lease" means that instrument together with every variation, renewal or supplement to it.
2. THE LOCK-IN PERIOD
2.2 The Landlord confirms that it has not defaulted under the Lease in any manner that would excuse the Tenant from the obligations of the Lock-in Period.
3. THE BREACH
4. COMPENSATION CLAIMED
4.4 The Parties agreed this amount, or the basis on which it is computed, as a genuine pre-estimate of the Landlord's loss on an early exit within the Lock-in Period. It is claimed as such, and remains subject to Section 74 of the Indian Contract Act, 1872, under which a sum named in a contract for breach operates as the outer limit of reasonable compensation and not as a penalty the Landlord may recover merely by proving the breach.
4.5 The Landlord will give credit against the amount claimed for any sum actually recovered by re-letting the Premises for the balance of the Lock-in Period, to the extent the Lease so provides or the law otherwise requires.
5. DEMAND
6. RESERVATION OF RIGHTS
6.1 This notice is given without prejudice to, and does not waive, any other right or remedy available to the Landlord under the Lease or at law — including the right to re-let the Premises to a third party, to recover any shortfall in rent for the balance of the Lock-in Period after giving credit under Clause 4.5, to recover the amount claimed in this notice as a debt by suit or other lawful proceeding, and to claim interest and costs.
6.2 Nothing in this notice is, or is to be read as, an admission by the Tenant of the matters stated in it, or as a representation by the Landlord that the amount claimed, or any part of it, is or will be held enforceable in the form claimed. That is a matter for the Tenant to accept, negotiate or contest, and for a court to decide if it is not resolved between the Parties.
7. NO WAIVER
7.1 Acceptance by the Landlord of vacant possession, or of any sum paid or payable under the Lease up to the date of this notice, is not a waiver of the claim made in this notice, and does not release the Tenant from liability for the compensation claimed.
8. GOVERNING LAW AND JURISDICTION
9. SERVICE AND REPLY
Yours faithfully,
ACKNOWLEDGEMENT OF RECEIPT
Received a copy of the above notice dated __________ for and on behalf of __________.
Name: _________________ Designation: _________________
Signature: _________________ Date: ____________