Equipment rental agreement template

Equipment Rental Agreement

Parties: Lessor · Lessee

1. Purpose

The Lessor rents the equipment described below to the Lessee for the rental period, and the Lessee rents it and pays the rent, on the terms of this agreement.

2. Equipment and ownership

Equipment: [[Product names, models and specifications]]

Serial numbers, accessories, manuals and consumables included: [[List them]]

The equipment remains the property of the Lessor throughout. The Lessee must not sell, pledge, sublet or lend it, remove or cover identification marks, or allow anyone to claim rights in it, and tells the Lessor at once if a third party tries to seize it.

3. Condition at handover

The Lessor hands over the equipment clean, in safe working order, with the accessories listed and, where relevant, with evidence of the last inspection or calibration. At handover the parties complete and sign a handover report that records the condition, meter readings, existing scratches or defects, and the accessories, and may add photographs. The Lessee checks the equipment at handover and notes anything missing or damaged in the report; defects not visible at handover are reported within [[2]] business days. The report is the reference for the inspection on return.

4. Rental period and late return

The rental period runs from [[Start date and time]] to [[End date and time]]. The Lessee may ask to extend it, and an extension takes effect only when the Lessor has confirmed it in writing or in electronic form. If the equipment is not returned or made available for pick-up by the end of the rental period, the Lessee pays the daily rate in the price schedule for each day of delay, increased by [[50]]%, without this extending the rental period, and the Lessor may collect the equipment at the Lessee’s cost.

5. Rent and payment

The Lessee pays the rent shown in the price schedule of this contract, on the payment terms stated in it. The rent covers normal use within the rental period and the Lessor’s routine servicing; it does not cover consumables, fuel, transport, operator staff or damage charges unless the price schedule says so. Rent is invoiced [[in advance for the whole period / monthly in advance]].

6. Deposit

The Lessee pays a deposit of [[Amount]] before or at handover. The Lessor holds it as security for the rent, damage charges, late-return charges and other amounts due under this agreement, and returns it within [[14]] days after the inspection on return, less any amounts it is entitled to deduct, with an itemised statement. No interest is paid on the deposit unless the law requires it.

7. Delivery and pick-up

The equipment is [[delivered by the Lessor to / collected by the Lessee from]] [[Address]] on [[Date]] between [[time]] and [[time]], and [[collected by the Lessor from / returned by the Lessee to]] the same address at the end of the rental period, unless agreed otherwise. Transport is charged as shown in the price schedule. The party arranging transport bears the risk during transport. The Lessee provides a safe, accessible place for loading and unloading and a person authorised to sign the handover and return reports.

8. Use and care

The Lessee uses the equipment only for its intended purpose, in line with the manufacturer’s instructions and the applicable safety rules, only by persons who are trained and, where the law requires it, licensed to operate it, and only at [[Site or area of use]]. The Lessee keeps it clean, performs the daily checks and routine maintenance described in the manual, uses only the fuels, lubricants and consumables specified, does not modify it, does not remove safety devices, and allows the Lessor to inspect it on reasonable notice. Software or firmware is used only as licensed.

9. Risk of loss and damage

From handover until the equipment is returned to the Lessor, the Lessee bears the risk of its loss, theft and damage, from whatever cause except normal wear and tear and defects the Lessor is responsible for. The Lessee reports any loss, theft, accident or damage to the Lessor within [[24]] hours, reports theft or vandalism to the police and gives the Lessor the report. If the equipment is lost or damaged beyond economic repair, the Lessee pays its replacement value of [[Amount]], less any insurance payment the Lessor receives, and rent is payable until the loss is reported.

10. Insurance

During the rental period the Lessee insures the equipment at its replacement value against loss, theft, fire and damage, and holds liability insurance for damage caused by its use, with cover of at least [[Amount]] per claim. The Lessee names the Lessor as the beneficiary of the equipment cover or has its interest noted, gives the Lessor a certificate before handover and keeps the cover in force. [[Optional: alternatively, the Lessor’s insurance applies at the premium in the price schedule, with an excess per claim payable by the Lessee; state the excess here]]

11. Breakdown and repairs

The Lessee reports any fault or breakdown to the Lessor without delay and stops using faulty equipment where safety requires it. The Lessee does not repair the equipment itself or through third parties without the Lessor’s consent. For a fault not caused by the Lessee, the Lessor repairs or replaces the equipment within [[2]] business days of the report, and no rent is due for the days the equipment was unusable beyond that; if the Lessor cannot do so within [[7]] days, the Lessee may terminate the rental of the affected item. Repairs of faults caused by the Lessee are charged under the Inspection on return and damage charges clause.

12. Inspection on return and damage charges

On return the parties inspect the equipment together against the handover report and sign a return report; if the Lessee does not attend, the Lessor inspects alone and sends the report with photographs within [[3]] business days, and the Lessee may object within [[5]] business days. The Lessee returns the equipment clean, with all accessories and with the fuel or charge level at handover. The Lessor charges, at cost and with an itemised statement within [[14]] days: repairs of damage beyond normal wear and tear, cleaning if returned dirty at [[Amount]], missing accessories at replacement cost, and refuelling or recharging. Normal wear and tear is not charged.

13. Termination

Either party may terminate this agreement by notice in writing or in electronic form if the other party seriously breaches it and does not remedy the breach within [[7]] days of being asked to. The Lessor may terminate without a remedy period if the Lessee uses the equipment in a dangerous or unlawful way, sublets it, moves it from the agreed site without consent, or if rent is more than [[14]] days overdue. On termination the Lessee returns the equipment or makes it available for pick-up at once; rent is payable until it is returned, and prepaid rent for the remaining period is refunded if the Lessee did not cause the termination.

14. Liability

The Lessor makes sure the equipment is in safe working order at handover and is liable for defects it is responsible for as provided by the applicable law. The Lessor is not liable for the Lessee’s loss of production or profit while the equipment is unusable, beyond the rent relief under the Breakdown and repairs clause. Except for intent, gross negligence, personal injury or where the law does not allow a limitation, each party’s total liability under this agreement is limited to the rent payable under it; the Lessee’s liability for loss of or damage to the equipment under the Risk of loss and damage clause is not limited by this.

15. Governing law and disputes

This agreement is governed by the law stated under Governing law. The parties will first try to settle any dispute in good faith. Otherwise the courts stated under Jurisdiction decide, unless mandatory law provides otherwise.

Payment terms

Rent payable in advance within [[7]] days of receiving the invoice; the deposit before or at handover; damage and late-return charges within [[14]] days of receiving the itemised invoice, by bank transfer to the account stated on the invoice.

Governing law

[[Country or state whose law applies]]

Jurisdiction

[[Courts that decide disputes, e.g. the courts of your city]]