What are the benefits of leasing equipment agreements?
Necessity of lease equipment
If you do not have extra sources to buy a machine or equipment to fulfil your business needs, law allows you to take the machine or use the equipment on the lease. Lease is made between lessor and lessee to use the equipment or machine for agreed period of time. The both parties can define the rent amount by their mutual consent. The lessee must protect the plant from the theft.
Inspection of equipment
The lessee shall examine the equipment and satisfies that plant is in good and usable condition. If damages are occurred to the machine after taking the possession then lessee will be responsible to pay the damages to the lessor.
Maintenance of the equipment
It is the duty of the lessee to maintain the equipment in good order. The lessee must ensure that equipment is used by skilled person. Lessee is responsible to repair the equipment. The lessee cannot sublet the equipment without the prior consent of the lessor. The lessee must insure the machine on its own cost for against the all risks for the lease term. The lessee shall provide the all insurance document to the lessor on the demand.
Security deposit
The lessor can demand the in advance security amount from the lessee. The security amount will protect the lessor interest in case of negligence by the lessee.
Responsibility of the lessee
The equipment lease agreement must define the lease period. It is the duty of the lessee to return the machine after the expiry of the agreement. The lessee must use the machine with due care because lease does not provide the rights of ownership. Ownership is always attached with lessor. The lessee cannot transfer or sale the plant.
Possession
The lessor must handover the possession of the plant on the commencement date of the agreement. So that, the lessee can fulls the purpose of renting out the plant. The lessor is no responsible for not delivering the possession of the plant due to force majure.
Use of machine
The law provides the remedy to business owners to run their business smoothly. If they cannot afford to buy a specific equipment or plant, they can use the machine on the rent. It is the duty of lessee to take all precautionary steps before entering into the agreement. The agreement must be signed in the presence of witness in order to minimise the disputes between the parties. The lessee cannot compel the lessor to give the possession of the ownership document. The lessee must ensure that machine will not be used other than the agreed purpose.
Not use for loan purpose
The lessee must pay the premium of insurance on regularly basis. The lessee cannot mortgage the equipment for the loan purposes. The lessee cannot move the machine other than the specified area without prior obtaining the consent of the lessor. The lease agreement cannot create the right of ownership. It joust allow the lessee to use the machine for definite period of time.
Net Lawman provides the comprehensive Machines and equipment sales agreements Such as:
Vehicle lease business to business
Comprehensive lease agreement suitable for renting out any type of large vehicle to businesses.
Equipment lease: machinery or factory plant
Comprehensive lease agreement suitable for renting out automated factory plant and equipment to businesses.
Processing your request, Please wait....
