Free Equipment Lease Agreement Template

EQUIPMENT LEASE AGREEMENT

This Equipment Lease is made on [DATE] between [LESSOR NAME], [ADDRESS] ("Lessor"), and [LESSEE BUSINESS NAME], [ADDRESS] ("Lessee").

1. EQUIPMENT. Lessor leases to Lessee the equipment described in Schedule A, including serial numbers ("Equipment").

2. TERM. The lease term is [NUMBER] months, starting on the date the Equipment is delivered and accepted ("Commencement Date").

3. PAYMENTS. Lessee will pay [NUMBER] monthly payments of $[AMOUNT], plus applicable taxes, due on the [DAY] of each month. Advance payment due at signing: $[AMOUNT], applied to [the first and last payments]. Total of payments: $[AMOUNT]. Late payments over [10] days incur a charge of [5]% of the overdue amount, not exceeding the legal maximum.

4. DELIVERY, INSTALLATION AND ACCEPTANCE. Lessor will deliver [and install] the Equipment at [LOCATION] by [DATE] at [Lessor's / Lessee's] expense. Lessee will inspect it within [5] business days and notify Lessor of any defect. The Equipment is accepted if no defect is reported in that period.

5. USE AND LOCATION. Lessee will use the Equipment in the ordinary course of business, in line with manufacturer instructions and applicable law, and keep it at the location above unless Lessor consents to a move.

6. MAINTENANCE AND REPAIRS. [Lessee will maintain the Equipment in good working order at its expense, except for normal wear and tear. / Lessor will provide maintenance under the service terms in Schedule B, including response within [NUMBER] business hours.]

7. WARRANTIES. Lessor passes through to Lessee all manufacturer warranties. [Lessor warrants the Equipment will be in good working order on delivery.] Except as stated, the Equipment is provided "as is."

8. RISK OF LOSS AND INSURANCE. From delivery, Lessee bears the risk of loss or damage. Lessee will insure the Equipment for its replacement value, naming Lessor as loss payee, and carry general liability insurance of at least $[AMOUNT].

9. OWNERSHIP. Lessor owns the Equipment. Lessee will keep it free of liens. Lessor may file a UCC financing statement as a precaution.

10. END OF TERM. At the end of the term, Lessee may, on at least [60] days' written notice before the term ends: (a) return the Equipment in good condition, normal wear and tear excepted, at [Lessor's / Lessee's] cost; (b) renew month to month at the same payment; or (c) buy the Equipment for [$1 / its fair market value / $[AMOUNT]]. If Lessee does not give notice, the lease [continues month to month and either party may end it on [30] days' notice]. [This lease does not renew automatically for another full term.]

11. EARLY TERMINATION. Lessee may end this lease early after [12] months by paying [the remaining payments discounted at [RATE]% / a fee of [AMOUNT]] and returning the Equipment.

12. DEFAULT. Lessee defaults if a payment is more than [15] days late and not paid within [10] days after written notice, or if Lessee materially breaches this lease and does not cure within [30] days after notice. On default, Lessor may recover the Equipment and unpaid amounts due to date plus [the remaining payments discounted to present value, less net proceeds from re-leasing or selling the Equipment].

13. GOVERNING LAW. This lease is governed by the laws of [STATE].

GENERAL PROVISIONS
(a) Notices. Notices must be in writing and sent to the addresses or emails above (or as later updated by notice). Email notice is effective when sent, unless the sender receives a delivery failure message.
(b) Entire agreement. This agreement, with any schedules and exhibits, is the entire agreement between the parties on its subject and replaces all prior discussions and agreements on that subject.
(c) Amendments and waivers. Changes must be in writing and signed by both parties. A failure or delay in enforcing any term is not a waiver of it.
(d) Severability. If any provision is found unenforceable, it will be limited to the minimum extent necessary and the rest of this agreement will remain in effect.
(e) Assignment. Neither party may assign this agreement without the other party's written consent, except to a successor in a merger or sale of substantially all of its business, on notice.
(f) Relationship. Nothing in this agreement creates a partnership, joint venture or agency relationship unless expressly stated.
(g) Counterparts and electronic signatures. This agreement may be signed in counterparts and by electronic signature, each of which is an original and together form one agreement.
(h) Independent advice. Each party has had the opportunity to review this agreement with its own legal counsel and signs it voluntarily.

LESSOR: ______________________  Date: __________
LESSEE: ______________________  Name/Title: ______________  Date: __________

SCHEDULE A: Equipment
| Description | Make/Model | Serial number | Value |
|---|---|---|---|

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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.