Equipment Lease Agreement

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.