Equipment lease agreement

The free equipment rental and lease agreement template is used to create an agreement between the owner of the equipment, and the person who pays to possess the equipment for an agreed period. An equipment lease contract can have a fixed-term arrangement or the lessee can pay monthly.  Pursuant to the dictates of the contract, the lessee may be allowed to modify the equipment so far as such changes do not depreciate the value of the equipment. 

Equipment lease agreement template

Equipment lease agreement

Writing the Equipment Lease Contract

I. The Parties

  • Lease Contract Date: The date of the contract.

  • Lessor: The person that owns the equipment.

  • Lessee. The party renting the equipment. 

II. Description

  • Equipment that is leased. The equipment in question for which an agreement is created for.

III. Lease Type

  • Fixed Lease: The period when a person shall possess the rented equipment. This option states a designated start and end date of the rented equipment after which it is returned to the owner.

  • Monthly Rental: This option allows the lessee to pay monthly to make use of the equipment. If rental is chosen, a start date is established when the equipment will be possessed by the person renting it with a specified notice period of termination stated. This rental is cancellable by either party so far as notice is provided.

IV. Rent Payment

  • Rent Amount: Rent amount payable by the lessee at periods designated in the rental contract.

  • Payment Frequency: Select how often the lessee would pay the rent amount. 

V. Rent Guide

  • Payment Methods: The method of payment by the lessee whether cash, check, bank wire, etc.

VI. Late Charges

  • Delayed Rent Payment: The lessor sets penalties for late rent payments.

  • Applying Delayed Payment Penalty: How the late rent penalty is applied. 

VII Non-Sufficient Funds

  • Failed Checks. State provisions for the possibility of bounced checks and charges that may be incurred to protect the lessor.

VIII. Security Deposit

  • Protection Deposits: This is intended to cover damages to the equipment that may arise, hence a security deposit may be required. 

IX. Shipping

  • Transportation Obligation: This is created to designate who bears the responsibility for the transportation of equipment. 

X. Option To Purchase

  • Purchase: Select to indicate if the equipment can be acquired by the lessee or not.

XI. Repairs And Maintenance

  • Repairs Responsibility: Select to indicate who bears responsibility for repairing or maintaining the equipment.

XII. Insurance

  • Either require the lessee to get insurance that protects up to a certain amount or waive this obligation. 

  • Protection: Define who bears the responsibility for injury or damage caused by the equipment.

  • Waivers: Choose this if the person renting the equipment, the Lessee, will not bear any responsibility in terms of the insurance policy over the leased machine.

XXI. Governing Law

  • Jurisdiction: The state where the equipment is owned usually enforces the provisions of the rental agreement.

XXIII Extra Conditions

  • Required Provisions. This area should contain extra deals and agreements made between both parties should be recorded here.

XXIV. Authorization

  • Lessor’s Signature: The equipment owner’s signature is appended in this area.

  • Lessor’s Signature Date: The date when the lessor signs the agreement.

  • Printed Name Of Lessor: The lessor’s name.

  • Lessee’s Signature. The lessee appends their signature as approval of the agreement.

  • Signature Date Of Lessee: Date the signature was appended.

Lessee’s Printed Name: The lessee’s name.

Download our free Equipment lease agreement in an instant to create a legally binding document.

Download our free Equipment lease agreement in an instant to create a legally binding document.

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