Updated on January 14th, 2021
The equipment lease agreement regulates a precise understanding of the arrangement allowing an individual or business to utilize a piece of equipment for a predetermined duration length in exchange for monetary consideration. When a company requires specific hardware to do business, leasing can be a preferable option to buying for several reasons. The financial ramifications may entice a business owner or management to elect to rent rather than purchasing. When leasing, there is generally no need for a large down payment to compensate for acquiring the equipment. Therefore, leasing can especially benefit a company that needs more advanced technology as time goes on. Rather than pouring capital into hardware that will need to be sold and then updated frequently, leased equipment can be utilized to cut the cost, especially on necessary big-ticket investments.
The downloadable form is designed to institute a concrete arrangement, establishing the terms and conditions to be followed for the duration of the contract. Designated in the language is the lessor and lessee of the equipment, along with a statement confirming a description of the rented items. Various other clauses are presented to secure the understanding of the agreement surrounding the term of the lease, payments, security deposit prerequisites, and late fees on payments. Additional provisions are set forth to determine regulation and restriction, covering other concerns such as insurance, repairs, and liability. Both parties are encouraged to thoroughly read the leasing packet before submitting to endorsement. Upon execution of the document by the involved individuals and/or entities, a clear and legal commitment will commence.