Equipment Lease Agreement is a simple instrument designed to facilitate renting equipment to a needy lessee. Such contract is highly recommended for people with less inventory and monetary arrangements to start a new business. Similarly, an owner of equipment can lease unused inventory and earn rewards. This document is suitable for all sorts of equipment right from a copier to farm equipment and from a coffee maker to road construction equipment. However, typically equipment worth $5000 or more is often leased instead of a purchase as a standard industry protocol. Some considerations requiring attention prior to proceeding are
- Please provide a precise description of the equipment.
- Please specify the names of lessor, lessee, and bankers accurately.
- The contract form must contain information about the applicable depreciation rate.
- All parties, including the witnesses must sign this contract for its legal execution.
- Please hand over a duly signed copy of the lease contract to all signing parties.
This lease form is suitable for individuals as well as organizations. However, it is necessary to specify the title and role of the signing authority in case of an organization. Notarization of the signatures is not necessary for the execution and legal standing. Please remember that this contract form is a generic template suitable for all states; however, you may need to refer state law for additional provisions that govern such type of lease transactions.
How To Fill Equipment Lease Agreement
Please capture the interests of the parties by preparing accurate and mutual lease agreement for equipment. Review the document carefully to understand terms, conditions, and provisions of the tenancy. Following inputs are necessary.
- Legal name of the owner of the equipment or lessor
- Legal name of the lessee
- Date of preparing the equipment lease contract
- Article 1: Concise description of the equipment
- Article 2: Number of months to determine termination of lease
- Article 3: Name of lessor’s banker for remitting the rent
- Article 11: c: Particulars of applicable depreciation on the equipment
- Article 20: Date and signatures of witnesses, lessor, and lessee