"Equipment Lease Agreement Template"

What Is an Equipment Lease Agreement?

An Equipment Lease Agreement is a handwritten or typed legal document signed by the owner of the equipment (lessor) and the user of the equipment (lessee) that lets the latter use the equipment for a certain period of time in exchange for periodic lease payments.

Alternate Name:

  • Equipment Lease Contract.

Use this document for factory machinery, vehicles, and other tangible property, except for buildings. This contract can be filled out by individuals and entities alike. You may download an Equipment Lease Agreement through the link below or create a more personalized document using our online form builder.

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Equipment Lease Types

Equipment leases can be grouped into two main categories:

  1. Capital Lease. Sign this document to lease equipment for a long period of time. In many cases, the lessee has an option to purchase the equipment after the end of the lease period and uses this opportunity.
  2. Operating Lease. This contract allows the lessee to use the equipment for a short time. As a rule, the lessor is responsible for all the risks in the agreement, including general maintenance and repairs.

Equipment Lease Agreement terms and conditions must be negotiated by parties who are free to add whatever provisions they deem necessary. However, at a minimum, it is recommended to indicate the names and contact details of the parties, the lease duration, the amount of rent to be paid and the payment method, the main rights and obligations of the parties, the remedies for potential breach of contract, and the cancellation clause.

Once the papers are signed by the parties, the lessee is entitled to use the equipment while sending the periodic lease payments to the lessor. The lessor retains ownership of the equipment and has every right to terminate the contract if the lessee breaches the agreement.


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Equipment Lease Agreement
This ​ E quipment Lease Agreement (hereinafter referred to as the “Agreement”) is
entered into as of _________________ by and between ________________________,
with a mailing address of ________________________________________________
_____________________________________ (hereinafter referred to as the “Lessor”)
and ________________________, with a mailing address of ____________________
____________________________________ (hereinafter referred to as the “Lessee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
1. Equipment Being Leased. The Lessor agrees to lease the following equipment to
the Lessee:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
hereinafter referred to as the “Equipment”.
2. Lease Amount. The amount of the Equipment Lease is $____________________
per ______________________________.
P eriod
3. Lease Duration. This Agreement will begin on ____________________ and
remain in full force and effect until the Equipment is returned to the Lessor. It is
agreed that the Lessee will return the Equipment on ____________________ unless
the Agreement is terminated earlier.
4. ​ D amage or Loss​ . As permitted given the extent of the law, the Lessee will be
responsible for risk of theft, damage, loss, or destruction of the Equipment from any
and every cause. If while in the Lessee's possession the Equipment becomes damaged,
the Lessee agrees to pay for any and all costs of repair, up to the current value of the
Equipment. If while in the Lessee's possession, the Equipment becomes lost, the
Lessee agrees to pay the Lessor its current value.
5. Late Return. If the Equipment is returned to the Lessor after the date and time that
the Lease period ends, the Lessee agrees to pay the Lessor a charge of
$____________________ per day for each day beyond the end of the lease period,
until the Equipment is returned. The Owner is also allowed to subtract these charges
from the security deposit (if applicable).
Equipment Lease Agreement
This ​ E quipment Lease Agreement (hereinafter referred to as the “Agreement”) is
entered into as of _________________ by and between ________________________,
with a mailing address of ________________________________________________
_____________________________________ (hereinafter referred to as the “Lessor”)
and ________________________, with a mailing address of ____________________
____________________________________ (hereinafter referred to as the “Lessee”),
collectively referred to as the “Parties,” both of whom agree to be bound by this
Agreement.
1. Equipment Being Leased. The Lessor agrees to lease the following equipment to
the Lessee:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
hereinafter referred to as the “Equipment”.
2. Lease Amount. The amount of the Equipment Lease is $____________________
per ______________________________.
P eriod
3. Lease Duration. This Agreement will begin on ____________________ and
remain in full force and effect until the Equipment is returned to the Lessor. It is
agreed that the Lessee will return the Equipment on ____________________ unless
the Agreement is terminated earlier.
4. ​ D amage or Loss​ . As permitted given the extent of the law, the Lessee will be
responsible for risk of theft, damage, loss, or destruction of the Equipment from any
and every cause. If while in the Lessee's possession the Equipment becomes damaged,
the Lessee agrees to pay for any and all costs of repair, up to the current value of the
Equipment. If while in the Lessee's possession, the Equipment becomes lost, the
Lessee agrees to pay the Lessor its current value.
5. Late Return. If the Equipment is returned to the Lessor after the date and time that
the Lease period ends, the Lessee agrees to pay the Lessor a charge of
$____________________ per day for each day beyond the end of the lease period,
until the Equipment is returned. The Owner is also allowed to subtract these charges
from the security deposit (if applicable).
6. Security Deposit. In addition to the fees listed in Section 2 (Lease Amount) and
Section 5 (Late Return), the Lessee agrees to pay a deposit of $__________________
at the time this Agreement is signed. The Lessor may use this deposit to cover any
amounts due under this Agreement.
7. Insurance. No Insurance coverage is required for the Equipment under this
Agreement.
8. Equipment Care. It is agreed that the Equipment must only be used in a proper and
careful manner consistent with the Lessor's instructions and/or as the Equipment was
originally designed.
9. Legal Fees. ​ I n the event of a dispute resulting in legal action, the successful party
will be entitled to its legal fees, including, but not limited to its attorneys’ fees,
collection fees and the like.
10. Legal and Binding Agreement. This Agreement is legal and binding between the
Parties as stated above. The Parties each represent that they have the authority to enter
into this Agreement.
11. Governing Law and Jurisdiction. ​ T he Parties agree that this Agreement shall be
governed by ____________________ law​ .
S tate
12. Entire Agreement. The Parties acknowledge and agree that this Agreement
represents the entire agreement between the Parties. In the event that the Parties desire
to change, add, or otherwise modify any terms, they shall do so in writing to be signed
by both parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
LESSOR
LESSEE
Name: ​ _ _____________________
Name: ​ _ _____________________
Signed: ​ _ ____________________
Signed: ​ _ ____________________
Date: _______________________
Date: _______________________
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