Equipment Lease Agreement

An Equipment Rental Agreement is used when one party leases equipment from another for a specified period.

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Companies lease equipment all the time. Even if they have the capital to buy equipment, leasing may benefit from better cash flow, higher tax deductions, and improved credit score (at the end of the lease).

However, it may make the most sense to rent the equipment for all temporary needs through the use of an Equipment Rental Agreement.

What Is an Equipment Rental Agreement?

An Equipment Rental Agreement is a contract between a lessor and a lessee containing all of the rental terms. For example, a company may rent construction tools or vehicles for the duration of a project.

More than that, the Equipment Rental Agreement is also used for smaller items such as event planning equipment, appliances, furniture, and video equipment on a per-project basis. It is also not uncommon for individuals to enter into this type of agreement with a company or another individual.

Other Names for Equipment Rental Agreement

Depending on your state, an Equipment Rental Agreement may also be known as:

  • Rental of Goods Agreement
  • Equipment Rental Contract
  • Equipment Lease Agreement
  • Equipment Loan Agreement

Who Needs an Equipment Rental Agreement?

An Equipment Rental Agreement can protect both the lessor and the lessee. The lessor may be entitled to regular payments and insurance coverage, and the lessee can negotiate payment frequency and rental period.

Why Use 360 Legal Forms for Your Equipment Rental Agreement?

Customized for you, by you

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Equipment Rental Agreement.

Specific to Your Jurisdiction

Laws vary by location. Each document on 360 Legal Forms is customized for your state.

Fast and easy

All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.

How to Create an Equipment Rental Agreement With 360 Legal Forms

An Equipment Rental Agreement requires all the necessary clauses and terms to satisfy both parties of the contract. Businesses leasing equipment can significantly take advantage of a proven template.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Equipment Rental Agreement?

To create your document, please provide:

  • Lessor Details: The legal name and contact information of the lessor.
  • Lessee Details: The legal name and contact information of the lessee.
  • Agreement Terms: Specify whether the agreement is fixed or ongoing.
  • Payments: Specify the amount, frequency, and method of payments.
  • Penalties: Specify the liability or penalties of nonpayment.
  • Security Deposit: If applicable, specify the amount to be collected for the security deposit.
  • Insurance: List the insurance requirements as appropriate.
  • Signatures: Both parties are to sign the agreement.

Equipment Rental Agreement Terms

  • Lessor: In the context of an Equipment Rental Agreement, this is the person or entity renting out the equipment to the lessee.
  • Lessee: In the context of an Equipment Rental Agreement, this is the person or entity renting the equipment from the lessor.
  • Security Deposit: A sum of money collected upfront to signal an intent to rent, among other purposes.
  • Assignment: The act of transferring rights, including contractual rights, to another party.
  • Severability: The quality of a document, such as an agreement or a lawmakers' bill, being valid even when some parts or provisions are struck out (valid without the severed parts or requirements).
  • Penalty: In the context of an Equipment Rental Agreement, this is the penalty, most commonly monetary, for breaking the agreement's terms.
  • Indemnity: Legal protection against loss or damage.

Equipment Rental Agreement Signing Requirements

It's imperative to review the agreement before signing carefully. Notarization is not required.

What to Do With Your Equipment Rental Agreement?

After you have generated your Equipment Rental Agreement on 360 Legal Forms, download your document and print out a copy. The Equipment Rental Agreement becomes valid upon signing.

Frequently Asked Questions

In some states, the rental of more expensive equipment on a longer-term basis requires the purchase of insurance. For the less expensive equipment, it is most often up to a lessor to decide if they want to require a lessee to obtain insurance coverage. This could include liability insurance in addition to the standard property damage insurance.

If someone rents equipment to another party without drafting an Equipment Rental Agreement, he or she may be exposed to a range of unnecessary risks. The renter may skip payments and the property owner may have a hard time trying to collect rental payments purportedly agreed upon. In the event of property damage, the responsible party may likewise be in question.

While it is unnecessary to seek legal counsel for something relatively trivial like an Equipment Rental Agreement, either party certainly has a right to do so. For long-term rental of exorbitant equipment, getting a legal review may be particularly reassuring.

The first is the capital lease involving long-term leases where the lessee has a right to buy the equipment in question at the end of the lease agreement. The other category is the operating lease involving a relatively short-term and easily cancelable agreement (with a previously established notice).

This is a contract law term for an implied guarantee from a merchant that the goods sold conform to all the labels, work as intended, and will arrive adequately packaged. This warranty is attached to businesses that trade in goods and equipment, including the leasing of equipment through the use of Equipment Rental Agreements.

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Applicable to all 50 states
Applicable to all 50 states

Our documents are vetted by lawyers and are applicable to all 50 states.