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Equipment Lease Agreement: What Is It?

An equipment lease agreement is used for the leasing process of equipment instead of property. It involves two parties, the lessor and the lessee. The agreement will include information about both parties as well as the equipment that is being leased. It should also include the term of the lease and what the lease payments are going to be.

A lease agreement such as this may also include a clause for purchasing the equipment at the end of the lease period. If you will include this, be sure to list what the purchase price will be as well as how much notice must be given in order to make the transaction.

The lease agreement should be in place before the equipment is used by the lessee. This protects both parties from disputes. The lease agreement will work as a legally binding contract, so ensure you include all necessary information and ask a legal expert for advice if you need to.

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