An equipment lease formalizes an agreement in which one person or business borrows equipment from another.
- Letting a person or business use equipment that you own
- Using equipment owned by another person or business
A lease is a specific type of property agreement in which one party loans some real or personal property to another party. The party receiving the property must pay for the privilege to use it for a specified term and then return it at the end of the agreement. Executing an equipment lease agreement is a good idea whenever one person or business is using equipment owned by another person or business, even if payment is not an issue. Regardless of how the owner of the equipment will be compensated for lending out its property, the owner has a legal interest in protecting itself from liability in the event that the lessee used the equipment in a negligent, fraudulent, or otherwise improper way. This equipment lease agreement gives you the opportunity to create a customized contract that describes the terms and conditions under which property will be used by anyone other than its owner. It explains the rights, obligations, and liabilities of each party involved, as well as payment terms, a description of the equipment at issue, and several other terms regarding liability and use. Regardless of how and why you may be leasing equipment to or from others, it is always a good idea to create a straightforward agreement so that all parties involved are aware of what is expected of them with respect to the use and care of certain equipment.