What is an Equipment Lease

By | August 30, 2011

An equipment lease is a document which outlines the underlying principles of an equipment leasing agreement.  It must be written in a clear and cogent manner so that the terms and conditions of the equipment lease are understood by one and all. Since it is a document that has considerable legal standing, it must be written in an appropriate manner. The document must be framed after consultation with all involved parties, and also after seeking expert legal advice. It should be written by professionals who are well versed with the legal jargon that has to be used. Some points that must be mentioned in the equipment lease are as follows:

  • Names and addresses of the lessor and the lessee.
  • Duration of the equipment lease, followed by the dates of commencement and termination.
  • Nature of the equipment to be leased, with exact model specifications, numbers, and details on the condition of the equipment.
  • Current valuation of the equipment to be leased.
  • Purpose to which the equipment shall be used.
  • The initial security deposit to be paid by the lessee and the subsequent monthly rental charges that must be paid for the equipment leased.
  • The specific terms and conditions that are an important part of the equipment lease, including provision for early termination of equipment lease.
  • The kind of penalty which will be demanded of the offending party in case of a breach of contract, damage to borrowed goods and the like.
  • Signatures of lessor, lessee, advocates, witnesses, notaries and other necessary validators of the legal document.
  • Name of place and date on which the equipment lease has been ratified.

Thus, an equipment lease must be written carefully after considering each of the aspects mentioned above. It must be clear and precise so that no errors may be detected in the document.

Leave a Reply

Your email address will not be published. Required fields are marked *