Equipment Rental (Lease) Agreement Template

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Equipment Lease Agreement

 

This Equipment Lease Agreement (the "Agreement") is made and entered into on ________________ (the date of execution) at ________________ (state) by and between the following parties:

 

Party A: ____________________________ with a mailing address of ____________________________ (the "Lessor": this expression shall mean and include its legal heirs, administrators and permitted assigns)

 

Party B: ____________________________ with a mailing address of ____________________________ (the "Lessee": this expression shall mean and include its legal heirs, administrators and permitted assigns)

For the purpose of leasing the equipment described on Exhibit A attached hereto and made a part hereof (the "Equipment").

 

  1. Lease Terms. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Equipment for the term of _____ months commencing on _____ and ending on _____ (the "Lease Term"). The Lessor grants to the Lessee the right to use the Equipment for the Lease Term, subject to the terms and conditions of this agreement. The Lessee shall pay the rent of $ ________________ (“Rent”) per hour via ________________ (mode of payment). The Rent is inclusive of GST and applicable taxes. The payment of Rent shall be made in the following time interval: ________________.

 

  1. Use of Equipment. The Lessee shall use the equipment only for the following purpose: ________________. The Equipment shall be exclusively used by the Lessee. The Equipment shall not be used for any purpose except as specified above without the prior written consent of the Lessor. Lessee shall use the Equipment in a careful and proper manner and in accordance with manufacturer’s specifications and all applicable laws, ordinances, rules, and regulations. Lessee shall not use, or permit the use of, the Equipment for any illegal purpose. Lessee shall not remove, alter, or deface any of Lessor's labels, serial numbers, or other identification marks or plates affixed to the Equipment. The Lessee shall not sublet, assign or part with the possession of the Equipment either in part or in full without the prior written consent of the Lessor.

 

  1. Title. Title to the Equipment shall at all times remain with the Lessor. Lessee shall have no right, title, or interest in or to the Equipment except the right to use the Equipment during the Lease Term in accordance with the terms and conditions of this Agreement.

 

  1. Maintenance and Repair. Lessee shall keep the Equipment in good operating condition, ordinary wear and tear excepted. Lessee shall be responsible for all maintenance and repairs necessary to keep the Equipment in good operating condition, ordinary wear and tear excepted. Lessee shall not make any alterations, improvements, or repairs to the Equipment without the prior written consent of Lessor. All maintenance and repairs made by Lessee shall be made by qualified personnel using manufacturer's approved parts.

 

  1. Taxes. Lessee shall be responsible for all taxes, assessments, fees, and charges of any kind imposed by any governmental authority with respect to the Equipment or its use.

 

  1. Return of Equipment. At the end of the Lease Term, Lessee shall return the Equipment to Lessor within _____ business days after the termination of the Lease Agreement in the same condition as when received by Lessee, ordinary wear and tear excepted. Lessee shall be responsible for all costs of returning the Equipment to the Lessor.

 

  1. Default. Any one or more of the following shall constitute an event of default under this Agreement:

 

(a) Lessee fails to make any payment when due under this Agreement;

 

(b) Lessee fails to perform or observe any other term, covenant, or condition of this Agreement and such failure continues for _____ days after written notice thereof;

 

(c) Lessee (i) applies for or consents to the appointment of a receiver, trustee, or liquidator of Lessee or of any substantial part of its property, (ii) makes a general assignment for the benefit of creditors, (iii) files a voluntary petition in bankruptcy or for reorganization or arrangement under any insolvency law, or (iv) files an answer admitting the material allegations of a petition filed against it in any proceeding under any insolvency law;

 

(d) Any proceeding is commenced by or against Lessee under any insolvency law; or (e) Lessee is generally not paying its debts as they become due.

 

  1. Remedies. If an event of default occurs, Lessor may declare all sums outstanding under this Agreement immediately due and payable and exercise any or all of the following remedies:

 

(a) Enter onto the premises where the Equipment is located and take possession of the Equipment without the necessity of obtaining any eviction order or writ of assistance and without being liable for any damage resulting therefrom;

 

(b) Retake possession of the Equipment wherever located and for that purpose Lessor or its agents may go upon any premises where the Equipment may be;

(c) Require Lessee, at Lessee's sole cost and expense, to assemble the Equipment and make it available to Lessor at a place to be designated by Lessor which is reasonably convenient to both parties;

(d) Require Lessee, at Lessee's sole cost and expense, to disassemble the Equipment and make it available to Lessor at a place to be designated by Lessor which is reasonably convenient to both parties; or

(e) Pursue any other remedy provided by applicable law. Lessor's exercise of any remedy under this Agreement shall not be deemed an election of remedies or waiver of any other rights or remedies Lessor may have under this Agreement or by applicable law.

  1. Waiver. No waiver by Lessor of any right or remedy under this Agreement or by law shall be deemed a waiver of any other right or remedy, whether or not similar. No delay or omission by Lessor in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any one occasion shall not be construed as a bar to or waiver of any right or remedy on any future occasion.
  2. Notice of Default. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and delivered in person, sent by facsimile, or sent by a recognized overnight delivery service, and shall be deemed to have been given when so delivered, sent by facsimile, or sent by a recognized overnight delivery service. Notices shall be addressed as follows: If to Lessor: ____________________________ ____________________________ ____________________________ If to Lessee: ____________________________ ____________________________ ____________________________
  3. No Partnership or Agency. Nothing contained in this Agreement shall be deemed or construed by the parties or by any third party as creating a partnership, joint venture, or agency relationship between the parties.

 

  1. Entire Agreement. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, oral or written.
  2. Amendment. This Agreement may not be amended or modified except by an agreement in writing signed by the parties.
  3. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of _____.
  4. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  5. Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, the illegal, invalid or unenforceable provision shall be amended to achieve as closely as possible the economic, business and other objectives of the original provision and the remaining provisions of this Agreement shall remain in full force and effect.
  6. Assignment. Lessee may not assign this Agreement or any of its rights, interests, or obligations under this Agreement without the prior written consent of the Lessor.
  7. No Third Party Beneficiaries. This Agreement is made for the sole benefit of the parties hereto  and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.
  8. Headings. The headings of the sections of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
  9. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
  10. Force Majeure. Neither party shall be responsible for any delay or failure in performance of any part of this Agreement to the extent caused by acts of God, war, terrorism, strikes, lockouts, boycotts, supplier failures, fires, floods, weather, acts of civil or military authorities, or any other causes beyond the reasonable control of such party.
  11. Further Assurances. The parties agree to execute such further documents and instruments and to do all such other acts and things as may be necessary or desirable to carry out the intent and accomplish the purposes of this Agreement.
  12. Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when (a) mailed by certified or registered mail, return receipt requested, postage prepaid, (b) when sent by a recognized overnight delivery service, (c) when transmitted by facsimile with receipt confirmed, or (d) when delivered in person. Notices shall be addressed to each party at its address specified in the name clause of this Agreement above.
  13. Inspection. The Lessor and/or its authorized personnel shall have the right to enter upon the premises of the Lessee and inspect the Equipment or any part thereof with prior written notice of: ________________, at any time during the following hours: ________________. Provided, however, in case of emergency, no prior notice shall be required to be given.
  14. Termination. (i) The Lessor shall be entitled to terminate the lease without any notice in the event of a default committed by the Lessee which is not cured within the period of: ________________, from the date of receipt of a written notice in that regard from the Lessor. (ii) The Lessor shall be entitled to terminate this Lease Agreement by giving written notice of: ________________ to the Lessee of its intention to terminate. (iii) The Lessee shall be entitled to terminate this Lease Agreement by giving written notice of: ________________ to the Lessor of its intention to terminate. (iv) Upon any termination of the Lease for any reason whatsoever, the Lessee shall return the Equipment to the Lessor.

 

IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written.

 

Lessor:  

Signature ________________________

Typed or Printed Name ________________________

Title ____________________

 

Lessee:

Signature ________________________

Typed or Printed Name ________________________

Title_________________