Free Equipment Rental Agreement

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Equipment Rental Agreement

QGLeaseTerm



Fixed end date
Automatically renewing
Automatic Renewal means that the lease continues indefinitely on the agreed upon period (weekly, monthly, or yearly) until either party gives notice to the other party that they will be terminating the lease.




e.g. daily, weekly, etc.


e.g. 1 week, 1 month, 2 months, etc.




Your Equipment Rental Agreement

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EQUIPMENT RENTAL AGREEMENT

THIS EQUIPMENT RENTAL AGREEMENT (this "Agreement") dated this 24th day of August, 2019

BETWEEN:

______________________ of _________________________________
(the "Lessor")

OF THE FIRST PART


- AND -

______________________ of _________________________________
(the "Lessee")

OF THE SECOND PART

(the Lessor and Lessee 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 Lessor leases the Equipment to the Lessee, and the Lessee leases the Equipment from the Lessor 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 Lessor agrees to lease the Equipment to the Lessee, and the Lessee agrees to lease the Equipment from the Lessor in accordance with the terms set out in this Agreement.
  5. Term
  6. The Agreement commences on August 24, 2019 and will continue on a month-to-month basis (the "Term").
  7. Rent
  8. The rent, inclusive of sales tax, will be paid in installments of $____________ each month, in advance, beginning on August 24, 2019 and will be paid on the 1st day of each succeeding month throughout the Term (the "Rent").
  9. Use of Equipment
  10. The Lessee 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 Lessee will use the Equipment for the purpose for which it was designed and not for any other purpose.
  12. Unless the Lessee obtains the prior written consent of the Lessor, the Lessee 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 Lessee will, at the Lessee's own expense, keep the Equipment in good repair, appearance and condition, normal and reasonable wear and tear excepted. The Lessee 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 Lessor, the Lessor 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 Lessor will make the said repairs within a reasonable time of taking possession of the Equipment and will give the Lessee written notice of and invoices for the said repairs. Upon receipt of such invoices, the Lessee will immediately reimburse the Lessor for the actual expense of those repairs.
  16. The Lessee may, but is not obligated to, enforce any warranty that the Lessor has against the supplier or manufacturer of the Equipment. The Lessee 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 following purpose:
    _________________________________________________________________________
    _________________________________________________________________________
    _________________________________________________________________________
  20. Loss and Damage
  21. To the extent permitted by law, the Lessee 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 Lessee will continue paying Rent, will provide the Lessor 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 Lessee will provide the Lessor with prompt written notice of such loss and will pay to the Lessor all unpaid Rent for the Term plus the Casualty Value of the Equipment, at which point ownership of the Equipment passes to the Lessee.
  24. Ownership, Right to Lease and Quiet Enjoyment
  25. The Equipment is the property of the Lessor and will remain the property of the Lessor.
  26. The Lessee will not encumber the Equipment or allow the Equipment to be encumbered or pledge the Equipment as security in any manner.
  27. The Lessor warrants that the Lessor has the right to lease the Equipment according to the terms in this Agreement.
  28. The Lessor warrants that as long as no Event of Default has occurred, the Lessor will not disturb the Lessee's quiet and peaceful possession of the Equipment or the Lessee'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 Lessee 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 license and registration fees. The Lessee 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 Lessee will pay any and all penalties and interest for failure to report required information to any taxing authority with jurisdiction over the Lessee or the Equipment. If the Lessee fails to do any of the foregoing, the Lessor may, but is not obligated to, do so at the Lessee's expense.
  33. Notwithstanding any other provision of this Agreement, the Lessee will not be required to pay any tax, fee or charge if the Lessee 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 Lessee will indemnify and reimburse the Lessor for damages and expenses incurred by the Lessor arising from or related to the Lessee's failure to pay any tax, fee or charge, regardless of whether the Lessee is contesting the validity of the same or not.
  34. If the Lessee fails to pay any and all taxes, fees, and charges mentioned in this Agreement and the Lessor, on behalf of the Lessee, pays the same, the Lessee will reimburse the Lessor for the cost upon notification from the Lessor of the amount.
  35. Indemnity
  36. The Lessee will indemnify and hold harmless the Lessor 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 Lessee'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 Lessee fails to pay any amount provided for in this Agreement when such amount is due or otherwise breaches the Lessee's obligations under this Agreement.
    2. The Lessee 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 Federal bankruptcy law of the United States 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 Lessor 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 Lessee.
    2. Apply the Deposit toward any amount owing to the Lessor.
    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 Lessee waives any and all damage occasioned by such taking of possession.
    5. Terminate this Agreement immediately upon written notice to the Lessee.
    6. Pursue any other remedy available in law or equity.
  41. Additional Documents
  42. Upon written demand by the Lessor, the Lessee will execute and deliver to the Lessor documents required by the Lessor to protect the Lessor's interest in the Equipment including, but not limited to, the documents necessary to file a UCC financing statement.
  43. Entire Agreement
  44. 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.
  45. Address for Notice
  46. Service of all notices under this Agreement will be delivered personally or sent by registered mail or courier to the following addresses:

    Lessor: ______________________, _________________________________

    Lessee: ______________________, _________________________________

  47. Payment
  48. All dollar amounts in this agreement refer to U.S. dollars, and all payments required to be paid under this Agreement will be paid in U.S. dollars unless the Parties agree otherwise.
  49. Interpretation
  50. 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.
  51. Governing Law
  52. It is the intention of the Parties to this Agreement that this Agreement and the performance under this Agreement, and all suits and special proceedings under this Agreement, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the Commonwealth of Virginia (the "State"), without regard to the jurisdiction in which any action or special proceeding may be instituted.
  53. Severability
  54. If there is a conflict between any provision of this Agreement and the applicable legislation of the Commonwealth of Virginia (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.
  55. If there is a conflict between any provision of this Agreement and any form of Agreement prescribed by the Act, that prescribed form will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with that prescribed form. Further, any provisions that are required by that prescribed form are incorporated into this Agreement.
  56. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, those provisions to the extent enforceable and all other provisions will nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Agreement and the remaining provisions had been executed by both Parties subsequent to the expungement of the invalid provision.
  57. General Terms
  58. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  59. Time is of the essence in this Agreement.
  60. 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.
  61. 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.
  62. Notice to Lessee
  63. NOTICE TO THE LESSEE: 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 24th day of August, 2019


______________________________
(Witness)


______________________________
______________________ (Lessor)


______________________________
(Witness)


______________________________
______________________ (Lessee)

Equipment Rental Agreement Information

Alternate Names:

An Equipment Rental Agreement is as also known as an:

  • Equipment Lease Agreement
  • Equipment Rental Contract
  • Equipment Loan Agreement
  • Equipment Rental Form
  • Equipment Lease Form

What is an Equipment Rental Agreement?

An Equipment Rental Agreement is a document that individuals or businesses use to rent equipment (such as electronics, medical tools, heavy machinery, etc.) from one party to another party. This agreement defines each party's responsibilities and obligations and allows them to outline important terms and conditions, such as the cost to rent the item, when payments are due, the item's approximate value, and more.

Who is involved in an Equipment Rental Agreement?

Typically, an Equipment Rental Agreement will involve:

  • The owner of the equipment (the lessor)
  • The person who is renting the equipment (the renter or lessee)

A lessor and lessee can either be a person or a business depending on the circumstance of the rental. For example, you could own a small business that handles forklift rentals for companies in the construction industry or you could be planning an event and need to rent audio equipment (like a sound system) from a friend.

Do I need an Equipment Rental Agreement?

You should use an Equipment Rental Agreement any time you want to rent equipment you own to someone else. You can also use it to rent equipment that someone else owns if they will not be providing a contract for you to sign.

Creating an agreement allows you to limit your liability and include certain conditions for use (like indicating the item can only be used indoors) to help preserve the value of your equipment. With LawDepot’s Equipment Rental Agreement template, you can specify conditions such as:

  • How and where the equipment can be used
  • Whether the renter is responsible for maintaining or repairing rental items
  • Whether the renter will be responsible for paying for or replacing damaged rental items
  • Whether a damage deposit is required for the equipment rental
  • Whether interest will be charged on any outstanding rental balances
  • Whether the renter has the option to purchase the equipment (also called rent-to-own)

What can I use an Equipment Rental Agreement for?

An Equipment Rental Agreement can be used to outline the terms of rental for a variety of items, such as:

  • Heavy equipment (like forklift, scissor lift, and mini excavator rentals)
  • Construction materials (including scaffolding towers and parts, table saws, jackhammers, etc.)
  • Audio and visual equipment (such as cameras, lights, projectors, microphones, turn tables, etc.)
  • Storage and disposal units (like c cans, bin dumpsters, etc.)
  • IT equipment (such as computers, monitors, hard drives, etc.)
  • Catering equipment (including buffet tables, mixers, barbeques, deep fryers, etc.)
  • Event materials (like tents, banquet tables, outdoor heating systems, etc.)

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 from one date to another. After that date has passed, the item should be returned to the owner or a new equipment rental contract should be signed that coincides with the new rental period.
  • An indefinite rental contract, sometimes called a periodic lease, is one that automatically renews, meaning there is no end date on the contract. In this type of contract, one party would need to notify the other when they want the contract to end. Otherwise, the agreement will renew weekly, monthly, or yearly (depending on what was agreed upon) and would continue to be enforceable in court.

The type of lease term you choose for your equipment rental depends on your situation. For instance, if you are providing a camera to someone for them to use to photograph a single event, you may decide to use an end date in your agreement. Alternatively, if you are a heavy equipment rental company and are leasing a mini excavator to another company for a long-term construction project, you may decide to use a contract that renews monthly or yearly, so that you do not have to sign another Equipment Rental Agreement if the project takes longer than expected.

How is insurance handled in an Equipment Rental Agreement?

When renting equipment, you can choose whether or not the renter will need insurance to cover loss or damage for the equipment itself as well as to cover damage of property or injury to people while the equipment is being used.

In some states, lessees renting expensive equipment or renting for long periods of time may be required to obtain insurance for their equipment rental. For short-term rentals or those renting out inexpensive equipment (like a stereo or tripod), requiring insurance may still be worthwhile in order to help ensure you’re protected in case of an unforeseen circumstance.

Related Documents:

  • Bill of Sale: Use a Bill of Sale with a rent-to-own equipment lease form to finalize the sale of equipment.
  • Invoice Form: Create an Invoice Form to itemize the pieces of equipment being rented in greater detail.
  • Construction Contract: Draft a Construction Contract to outline the terms of a service provided for projects in the construction industry.
  • Music Recording Contract: Use a Music Recording Contract to specify ownership rights and other details when artists record music for a recording label.
  • Catering Contract: Create a Catering Contract to detail important terms and conditions regarding a catering service you are providing to a client.
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