An equipment lease is a document which outlines the terms and conditions on which the renting of any piece of equipment has been agreed on. It is legally binding and must be structured with great care. All clauses on which the deal is being negotiated must be mentioned in the equipment lease and must be agreed on by all parties concerned for the lease to be active and effective. It is an extremely vital document and must be accorded the respect it deserves.
- An equipment lease must specify the type and make of the piece of equipment in question to avoid any confusion or fraudulence regarding the nature of the deal.
- It must specify also the dates of activation and termination of the lease and the duration for which equipment will be in possession of the lessee.
- The monthly rental charges and the penalty for any damage accrued must also be indicated so as to be clear to the lessee.
- It must be signed by both the lessor and the lessee in order to be active and legally valid. The lease must also contain all contact information and other particulars of both parties. All information entered should be accurate and valid.
The advantages of an equipment lease are the transparency it ensures while securing a safe contract. Renting an equipment is always more economical than purchasing the same especially if the use is going to be short term one. Hence the equipment lease must be framed cautiously in order to prevent any loopholes.