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Master Equipment Lease Agreement Lawyer in Orlando, Florida
If you are a small business and need to rent equipment to get your business going, or if you own equipment and are considering renting out your equipment, you may want to draft a master equipment lease agreement or have one in place with the company from whom you are renting. There are many benefits to having a master equipment lease agreement in place, one of them being the ability to deduct the cost of the rental from taxes, the other being that these agreements outline the liabilities and responsibilities of each party.
According to Inc., a master equipment lease agreement is a kind of rental agreement where an owner makes equipment available for rent to another party. According to Inc., $220 billion worth of equipment was leased in 2004 alone. Companies in a range of fields may need to lease equipment. For example, if you want to get your gardening company off the ground, you may want to lease gardening equipment rather than purchase this equipment outright, to keep your overhead low. Or, if you want to create an independent film, many filmmakers choose to rent filming equipment rather than purchasing this equipment because the cost of buying cameras and other equipment can be prohibitively expensive. If you want to start your own construction business, you may also need specialized equipment. Again, in some cases, contractors choose to rent equipment rather than purchase it outright. If you plan to rent equipment, you’ll want to understand the terms of the lease agreement. For example, if you need the equipment for a shorter period of time, can you return it without penalty?
Some companies that have purchased equipment find it valuable to rent out equipment that they have that is not in use. This allows companies to get an additional cash flow for equipment that is not being used or for equipment they own. If you plan to rent out your equipment, you’ll also need to consider the legal obligations and responsibilities you might have. A master equipment lease agreement lawyer in Orlando, Florida at Legal Counsel, P.A. can assist you with drafting a contract that will protect your legal rights. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
What Should Be Included in a Master Equipment Lease Agreement?
There are many important elements that should be included in a master equipment lease agreement. The contract should include the times and dates on which the equipment is deliverable to the company or individual leasing the equipment, and the contract should also include the duration for which the equipment will be leased. Information about payment and when payment is due should also be included in the master equipment lease agreement. Because the equipment is being borrowed rather than being purchased, there is always a risk that the equipment can become damaged during use. It is important in any rental agreement involving equipment that the replacement value of the equipment be clearly stated and that the master equipment lease agreement include terms for replacement or repair should damages occur. In some cases, master equipment lease agreements include clauses requiring lenders to have insurance protecting the purchase price of the equipment. During the term of the lease, the lender may also require the company borrowing the equipment to perform reasonable upkeep. Another factor to consider when renting heavy machinery is the risk of personal injury. The renter of the equipment might want to include an indemnification clause in the master equipment lease agreement to protect their interests. Heavy machinery may also require special training or licensing to be used. The master equipment lease agreement may include clauses that explicitly state that the company or party leasing the equipment cannot provide this training or licensure. Master equipment lease agreements may also include cancellation terms. There may be conditions where cancellation may be acceptable (say, in the case where technology improves and old equipment is deemed obsolete). When leasing technology like computer systems, companies may want to take precautions to protect their legal rights should rented computer systems require updating. Another factor to consider is whether the option to purchase will be included in the master equipment lease agreement.
If you are thinking of leasing equipment, contact Legal Counsel, P.A. and consult with our master equipment lease agreement lawyer in Orlando, Florida today. Leasing equipment can be costly and different providers may offer diverse terms. It is important to protect your rights, whether you are the person renting the equipment or the company offering the equipment for rent. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
Renting Equipment in Orlando, Florida?
One of the biggest barriers to starting your own business can be getting the equipment you need to get up and running. Contact Legal Counsel, P.A. and consult with our master equipment lease agreement lawyer in Orlando, Florida who can help you as you negotiate these important contracts. Get the best possible terms and protect your legal rights. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.