Free Equipment Rental Agreement

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Equipment Rental Agreement

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Motor vehicle
Heavy machinery or tools
Event equipment
Appliance or furniture
Other equipment




Your Equipment Rental Agreement

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EQUIPMENT RENTAL AGREEMENT

THIS EQUIPMENT RENTAL AGREEMENT (this "Agreement") dated this ________ day of ________________, ________

BETWEEN:

______________________ of _________________________________
(the "Owner")

OF THE FIRST PART


- AND -

______________________ of _________________________________
(the "Hirer")

OF THE SECOND PART

(the Owner and Hirer are collectively the "Parties")

IN CONSIDERATION OF the mutual covenants and promises in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Owner leases the Equipment to the Hirer, and the Hirer leases the Equipment from the Owner on the following terms:

  1. Definitions
  2. The following definitions are used but not otherwise defined in this Agreement:
    1. "Casualty Value" means the market value of the Equipment at the end of the Term or when in relation to a Total Loss, the market value the Equipment would have had at the end of the Term but for the Total Loss. The Casualty Value may be less than but will not be more than the original purchase price of the Equipment.
    2. "Equipment" means ______________________________________________________ which has an approximate value of $____________.
    3. "Total Loss" means any loss or damage that is not repairable or that would cost more to repair than the market value of the Equipment.
  3. Lease
  4. The Owner agrees to lease the Equipment to the Hirer, and the Hirer agrees to lease the Equipment from the Owner in accordance with the terms set out in this Agreement.
  5. Term
  6. The Agreement commences on 1 December 2020 and will continue until 1 December 2020 (the "Term").
  7. Rent
  8. The rent, inclusive of GST, will be paid in instalments of $____________ each month, in advance, beginning on 1 December 2020 and will be paid on the first day of each succeeding month throughout the Term (the "Rent").
  9. Use of Equipment
  10. The Hirer will use the Equipment in a good and careful manner and will comply with all of the manufacturer's requirements and recommendations respecting the Equipment and with any applicable law, whether local, state or federal respecting the use of the Equipment, including, but not limited to, environmental and copyright law.
  11. The Hirer will use the Equipment for the purpose for which it was designed and not for any other purpose.
  12. Unless the Hirer obtains the prior written consent of the Owner, the Hirer will not alter, modify or attach anything to the Equipment unless the alteration, modification or attachment is easily removable without damaging the functional capabilities or economic value of the Equipment.
  13. Repair and Maintenance of Equipment
  14. The Hirer will, at the Hirer's own expense, keep the Equipment in good repair, appearance and condition, normal and reasonable wear and tear excepted. The Hirer will supply all parts that are necessary to keep the Equipment in such a state.
  15. If the Equipment is not in good repair, appearance and condition when it is returned to the Owner, the Owner may make such repairs or may cause such repairs to be made as are necessary to put the Equipment in a state of good repair, appearance and condition, normal and reasonable wear and tear excepted. The Owner will make the said repairs within a reasonable time of taking possession of the Equipment and will give the Hirer written notice of and invoices for the said repairs. Upon receipt of such invoices, the Hirer will immediately reimburse the Owner for the actual expense of those repairs.
  16. The Hirer may, but is not obligated to, enforce any warranty that the Owner has against the supplier or manufacturer of the Equipment. The Hirer will enforce such warranty or indemnity in its own name and at its own expense.
  17. Warranties
  18. The Equipment will be in good working order and good condition upon delivery.
  19. The Equipment is of merchantable quality and is fit for the purposes it is ordinarily used.
  20. Loss and Damage
  21. To the extent permitted by law, the Hirer will be responsible for risk of loss, theft, damage or destruction to the Equipment from any and every cause.
  22. If the Equipment is lost or damaged, the Hirer will continue paying Rent, will provide the Owner with prompt written notice of such loss or damage and will, if the Equipment is repairable, put or cause the Equipment to be put in a state of good repair, appearance and condition.
  23. In the event of Total Loss of the Equipment, the Hirer will provide the Owner with prompt written notice of such loss and will pay to the Owner all unpaid Rent for the Term plus the Casualty Value of the Equipment, at which point ownership of the Equipment passes to the Hirer.
  24. Ownership, Right to Lease and Quiet Enjoyment
  25. The Equipment is the property of the Owner and will remain the property of the Owner.
  26. The Hirer will not encumber the Equipment or allow the Equipment to be encumbered or pledge the Equipment as security in any manner.
  27. The Owner warrants that the Owner has the right to lease the Equipment according to the terms in this Agreement.
  28. The Owner warrants that as long as no Event of Default has occurred, the Owner will not disturb the Hirer's quiet and peaceful possession of the Equipment or the Hirer's unrestricted use of the Equipment for the purpose for which the Equipment was designed.
  29. Insurance
  30. No insurance coverage for the Equipment is required under this Agreement.
  31. Taxes
  32. The Hirer will report and pay all taxes, fees and charges associated with the Equipment, with the use of the Equipment, and with revenues and profits arising out of the use of the Equipment, including, but not limited to, sales taxes, property taxes, and licence and registration fees. The Hirer will pay any and all penalties and interest for failure to pay any tax, fee or charge on or before the date on which the payment is due. The Hirer will pay any and all penalties and interest for failure to report required information to any taxing authority with jurisdiction over the Hirer or the Equipment. If the Hirer fails to do any of the foregoing, the Owner may, but is not obligated to, do so at the Hirer's expense.
  33. Notwithstanding any other provision of this Agreement, the Hirer will not be required to pay any tax, fee or charge if the Hirer is contesting the validity of same in the manner prescribed by the legislation governing the imposition of same, or in the absence of a prescribed form, in a reasonable manner. However, the Hirer will indemnify and reimburse the Owner for damages and expenses incurred by the Owner arising from or related to the Hirer's failure to pay any tax, fee or charge, regardless of whether the Hirer is contesting the validity of the same or not.
  34. If the Hirer fails to pay any and all taxes, fees, and charges mentioned in this Agreement and the Owner, on behalf of the Hirer, pays the same, the Hirer will reimburse the Owner for the cost upon notification from the Owner of the amount.
  35. Indemnity
  36. The Hirer will indemnify and hold harmless the Owner against any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including attorney's fees and costs, arising out of or related to the Hirer's use of the Equipment.
  37. Default
  38. The occurrence of any one or more of the following events will constitute an event of default ("Event of Default") under this Agreement:
    1. The Hirer fails to pay any amount provided for in this Agreement when such amount is due or otherwise breaches the Hirer's obligations under this Agreement.
    2. The Hirer becomes insolvent or makes an assignment of rights or property for the benefit of creditors or files for or has bankruptcy proceedings instituted against it under the bankruptcy law of Australia or another competent jurisdiction.
    3. A writ of attachment or execution is levied on the Equipment and is not released or satisfied within 10 days.
  39. Remedies
  40. On the occurrence of an Event of Default, the Owner will be entitled to pursue any one or more of the following remedies (the "Remedies"):
    1. Declare the entire amount of the Rent for the Term immediately due and payable without notice or demand to the Hirer.
    2. Apply the Deposit toward any amount owing to the Owner.
    3. Commence legal proceedings to recover the Rent and other obligations accrued before and after the Event of Default.
    4. Take possession of the Equipment, without demand or notice, wherever same may be located, without any court order or other process of law. The Hirer waives any and all damage occasioned by such taking of possession.
    5. Terminate this Agreement immediately upon written notice to the Hirer.
    6. Pursue any other remedy available in law or equity.
  41. Entire Agreement
  42. This Agreement will constitute the entire agreement between the Parties. Any prior understanding or representation of any kind preceding the date of this Agreement will not be binding on either Party except to the extent incorporated in this Agreement.
  43. Address for Notice
  44. Service of all notices under this Agreement will be delivered personally or sent by registered mail or courier to the following addresses:

    Owner: ______________________, _________________________________

    Hirer: ______________________, _________________________________

  45. Payment
  46. All dollar amounts in this agreement refer to Australian dollars, and all payments required to be paid under this Agreement will be paid in Australian dollars unless the Parties agree otherwise.
  47. Interpretation
  48. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  49. Governing Law
  50. This Agreement will be construed in accordance with and governed by the laws of Australia and the Parties submit to the exclusive jurisdiction of the Australian courts.
  51. Severability
  52. If there is a conflict between any provision of this Agreement and the applicable legislation of Australian Capital Territory (the "Act"), the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.
  53. General Terms
  54. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  55. Time is of the essence in this Agreement.
  56. This Agreement will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each Party to this Agreement.
  57. Neither Party will be liable in damages or have the right to terminate this Agreement for any delay or default in performance if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions, wars, insurrections, natural disasters, such as earthquakes, hurricanes or floods and/or any other cause beyond the reasonable control of the Party whose performance is affected.
  58. Notice to Hirer
  59. NOTICE TO THE HIRER: This is a lease. You are not buying the Equipment. Do not sign this Agreement before you read it. You are entitled to a completed copy of this Agreement when you sign it.

IN WITNESS WHEREOF ______________________ and ______________________ have duly affixed their signatures under hand and seal on this ________ day of ________________, ________


______________________________
(Witness)


______________________________
______________________ (Owner)


______________________________
(Witness)


______________________________
______________________ (Hirer)

Equipment Rental Agreement Information

An Equipment Rental Agreement is also known as an:

  • Equipment hire agreement
  • Equipment lease agreement
  • Equipment loan agreement

What is an Equipment Rental Agreement?

An Equipment Rental Agreement is a document that individuals or businesses use to rent equipment (such as gym equipment, catering appliances, or heavy machinery) to another party.

This agreement defines each party's responsibilities and obligations and outlines important terms and information, such as the cost to rent the item, when payments are due, the item's approximate value, and more.

What type of equipment can I lease with an Equipment Rental Agreement?

Customise an Equipment Rental Agreement for a variety of items, including:

  • Vehicles, such as cargo vans or moving trucks
  • Heavy machinery, such as dozers, loaders, excavators, etc.
  • Power tools for landscaping, tree clearing, home renovations, etc.
  • Event equipment, such as catering supplies or DJ equipment
  • Electronics, such as computers or monitors
  • Appliances, such as concession equipment
  • Furniture for home staging or photoshoots

Use LawDepot's Vehicle Leasing Agreement when hiring out a personal car. This contract typically suits vehicle rentals that don't involve people in the automobile industry (e.g., car dealerships).

How do I use a rental agreement to lease equipment?

Use an Equipment Rental Agreement to lease equipment by outlining the rights and obligations of both the owner and the hirer. A written contract helps the parties avoid disputes and provides evidence of the agreement if a dispute does occur. An agreement also helps limit your liability and preserve the value of the equipment.

What terms and conditions does an Equipment Rental Agreement include?

The information you’ll need to create an equipment hire agreement generally includes:

  • A description of the equipment
  • Restrictions of use
  • Pick up, delivery, and return options
  • Repair and reimbursement conditions
  • The lease term (e.g., fixed, monthly, or yearly)
  • Payment details (if needed, include interest on late payments and a damage deposit)
  • The owner’s and hirer’s name and contact information

In addition to terms that describe the equipment, its use, and payment details, the hire agreement may also describe the following conditions:

  • Option to purchase: The owner may allow the hirer to purchase the equipment at the end of the lease. However, including this clause may change the nature of the agreement from a lease to a conditional purchase contract, which may affect its deductibility as a business expense.
  • Assignment: The owner or the hirer may reserve the right to transfer the lease to someone else. In this case, the terms of the agreement remain intact but a third party would contract to take on the rights and obligations of the assignor. Use an Assignment Agreement to transfer contract obligations properly.
  • Insurance: Depending on the nature of your agreement, laws may require the hirer to obtain insurance. This is often the case when hiring industrial or commercial plant equipment. The owner may also require the hirer to obtain insurance for public liability, property damage, or loss.
  • Taxes: The hirer may be responsible for paying taxes levied on the equipment.
  • Additional fees: The owner may charge extra fees as needed (such as administration fees).

When should my Equipment Rental Agreement end?

Generally, you can rent equipment on a fixed term or indefinitely:

  • A fixed end date means you agree to rent your item for a set time. After the end date passes, the borrower must return the item to the owner or sign a new equipment rental contract.
  • An indefinite rental contract, sometimes called a periodic lease, is one that automatically renews (weekly, monthly, or yearly). There is no end date on the contract. In this case, one party notifies the other when they want the contract to end.

The type of lease term you choose for your equipment rental depends on your situation. For instance, if you’re providing a camera to a photographer for a single event, you’ll likely use an end date in your agreement.

Alternatively, if you’re leasing a mini excavator to a company for a long-term construction project, you may renew the contract monthly or yearly. This way, you won’t have to sign another Equipment Rental Agreement if the project takes longer than expected.

Related documents

  • Assignment: Transfer the rights and benefits of an entire contract or part of a contract from one party to another.
  • Bill of Sale: Use a Bill of Sale with a rent-to-own equipment lease form to finalize the sale of equipment.
  • Construction Contract: Draft a Construction Contract to outline the terms of a service provided for projects in the construction industry.
  • Performance Contract: Use a Performance Contract to set out the terms of a performance by an individual or group in a private or commercial venue.
  • Catering Contract: Create a Catering Contract to detail important terms and conditions regarding a catering service you are providing to a client.
  • Vehicle Leasing Agreement: Rent a personal vehicle to another person for a fixed term.
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