Overview of Equipment Lease

 

What is this document?

The Equipment Lease is an agreement to lease (or rent) equipment.

 

When would I use this document?

This type of document could be used in any situation where one person is leasing equipment to another person.

 

Who signs this document?

The person who leases out the equipment (the lessor) and the person leasing the equipment (the lessee) both sign the document.

 

More details about this document

The Equipment Lease can be used as a ‘true lease’ where the purpose of the lease is to provide equipment to a lessee by a person in the business of providing such equipment. At the same time, the Equipment Lease can be used in conjunction with a financing transaction where the purpose of the lease is to finance the use/acquisition of the equipment. In many jurisdictions, leases for longer than a year are considered to create security interests and can be registered in the personal property security registry to protect the interests of the lessor in the equipment.

This lease includes a description of the leased equipment, and details of the payment schedule, amount of rent to be paid, deposit, and interest on overdue payments.

Protections for the lessor include restrictions on the use and location of the equipment, maintenance, warranties and liens.

 

What are the core elements of this document?

The core elements include a Description of the Equipment, Deposit, Payment Schedule, Rent, Maintenance, Location of Equipment, Warranties, Default and Termination.

The document could also contain clauses dealing with Insurance, Indemnification, Limitation of Liabilities, and Liens.

 

Related Documents

Asset Purchase Agreement – an agreement for the sale of the assets of a business

Sublease – an agreement between a tenant and a subtenant (and sometimes the landlord), where the subtenant will be liable to the tenant for obligations under the will. However, the tenant will still be liable to the landlord.

Offer to Lease – an offer to lease a property between landlord and potential tenant. This will outline the material points of the lease. This can be binding or not binding.

Consent to Assignment of Lease and Amendment to Lease – Agreement requiring consent from the landlord to assign the lease to someone else and amend the lease.

Commercial Lease – lease between a landlord and tenant for a commercial property.

General Security Agreement – an agreement that grants a security interest in collateral to ensure the repayment of a loan or other debt

 

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