This is an agreement to lease equipment pursuant to the specific terms and conditions
as negotiated by the parties. This agreement contains indemnification, rent, and
disclaimer clauses and also contains a warranty as to the equipment. This long-form
document contains both standard clauses and opportunities for the use of optional
terms and conditions making it fully customizable to fit the needs of the contracting
parties. This form is useful to individuals or businesses seeking to lease equipment with
AGREEMENT TO LEASE EQUIPMENT (WITH WARRANTY)
THIS AGREEMENT TO LEASE EQUIPMENT ("Lease Agreement") is made and effective
on ______ [Month] ____ [Date], 20____ [Year], by and between
_____________________________ [Instruction: Insert the name of the person owning the
equipment/lessor], located at __________________________________________ [Instruction:
Insert the address of the Lessor] (hereinafter referred to as "Lessor") and
_______________________________ [Instruction: Insert the name of Lessee], located at
__________________________________ [Instruction: Insert the address of the Lessee]
(hereinafter referred to as "Lessee"). Lessor and Lessee may be individually referred to as
“Party” and collectively as “Parties”.
WHEREAS, the Lessor is the sole owner of that certain equipment describe in Exhibit A;
WHEREAS, the Lessee wishes to lease the equipment from the Lessor in accordance with the
term of this Agreement;
WHEREAS, each party is duly authorized and capable of entering into this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set
forth, the Parties hereto agree as follows:
The Lessor agrees to lease to the Lessee, and the Lessee agrees to lease and rent from the
Lessor, the equipment more fully described in Exhibit A, (the “Equipment”), on the terms
and conditions of this Agreement.
2. Term and Payment
See the attached Exhibit B.
3. Shipping [Instruction: choose any one clause from below]
Lessee shall be responsible for shipping the Equipment to Lessee's premises.
Lessor shall be responsible for shipping the Equipment to Lessee's premises.
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Lessee shall use the Equipment in a careful manner, shall make all necessary repairs at
Lessee's expense, and shall comply with all laws relating to its possession, use or
maintenance, and shall not make any alterations, additions, or improvements to the
Equipment without Lessor's prior written consent. All additions, repairs, or improvements
made to the Equipment shall belong to Lessor.
5. Disclaimer of Warranties and Claims; Limitation of Remedies
LESSOR, NOT BEING THE MANUFACTURER OF THE EQUIPMENT NOR THE
MANUFACTURER'S AGENT, MAKES NO EXPRESS OR IMPLIED WARRANTY OF
ANY KIND WHATSOEVER WITH RESPECT TO THE EQUIPMENT, INCLUDING,
BUT NOT LIMITED TO, THE MERCHANTABILITY OF THE EQUIPMENT OR ITS
FITNESS FOR ANY PARTICULAR PURPOSE; THE DESIGN OR CONDITION OF THE
EQUIPMENT; THE QUALITY OR CAPACITY OF THE EQUIPMENT; THE
WORKMANSHIP IN THE EQUIPMENT; COMPLIANCE OF THE EQUIPMENT WITH
THE REQUIREMENT OF ANY LAW, RULE, SPECIFICATION, OR CONTRACT
PERTAINING THERETO; PATENT INFRINGEMENT; OR LATENT DEFECTS.
LESSEE LEASES THE EQUIPMENT "AS IS" AND WITH ALL FAULTS. Lessee
accordingly agrees not to assert any claim whatsoever against Lessor for loss of anticipatory
profits or consequential damages. Lessor shall have no obligation to install, erect, test,
service, or maintain the Equipment. Lessee shall look to the manufacturer and/or seller for
any claims related to the Equipment.
IF THE EQUIPMENT IS NOT PROPERLY INSTALLED, DOES NOT OPERATE AS
REPRESENTED OR WARRANTED BY THE SUPPLIER OR MANUFACTURER, OR IS
UNSATISFACTORY FOR ANY REASON, REGARDLESS OF CAUSE OR
CONSEQUENCE, LESSEE'S ONLY REMEDY, IF ANY, SHALL BE AGAINST THE
SUPPLIER OR MANUFACTURER OF THE EQUIPMENT AND NOT AGAINST
LESSOR HEREBY ACKNOWLEDGES THAT ANY MANUFACTURER'S AND/OR
SELLER'S WARRANTIES ARE FOR THE BENEFIT OF BOTH LESSOR AND LESSEE.
NOTWITHSTANDING THE FOREGOING, LESSEE'S OBLIGATIONS TO PAY THE
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RENTALS OR OTHERWISE UNDER THIS LEASE SHALL BE AND ARE ABSOLUTE
AND UNCONDITIONAL. TO THE EXTENT PERMITTED BY THE MANUFACTURER
OR SELLER, AND PROVIDED LESSEE IS NOT IN DEFAULT UNDER THIS LEASE,
LESSOR SHALL MAKE AVAILABLE TO LESSEE ALL MANUFACTURER AND/OR
SELLER WARRANTIES WITH RESPECT TO EQUIPMENT.
The Equipment is, and shall remain, the property of Lessor, and Lessee shall have no right,
title, or interest therein or thereto except as expressly set forth in this Lease. The Equipment
shall remain personal property even if installed in or attached to real property.
Lessee acquires no ownership rights in the Equipment and has no option to purchase the
same. Upon the expiration or termination of this Lease Agreement, or in the event of a
default pursuant to Paragraph 12 hereof, Lessee, at its expense, shall return the Equipment in
good condition and shall perform any required repair work; however, it is understood and
agreed that ordinary wear and tear resulting from proper use thereof alone is expected and
expectable. Lessor shall deliver the Equipment, packed and ready for shipment, to such place
or carrier as Lessor may specify.
8. Loss and Damage
Lessee shall bear the entire risk of loss, theft, damage, or destruction of the Equipment from
any cause whatsoever, and no loss, theft, damage, or destruction of the Equipment shall
relieve Lessee of the obligation to pay rent or to comply with any other obligation under this
In the event of loss or damage of any kind whatsoever to the Equipment, Lessee shall, at
a) Place the same in good repair, condition, and working order; or
b) Replace the same with like equipment in good repair, condition, and working order; or
c) Pay to Lessor the replacement cost of the Equipment.
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_________________________________________ [Instruction: Insert Lessor or Lessee or
Both Parties as applicable] shall have an obligation to obtain, continuously maintain, and
[Instructions and Comments: There exist no federal including Consumer Leasing Act or
state laws making mandatory for Lessee or Lessor to maintain any specific insurances.
However, it is advisable for Lessors to include appropriate insurances from below:]
a. All risk insurance against loss of and damage to the Equipment for not less than the full
replacement value of the Equipment, naming _________ [Instruction: Insert Lessor
legal/entity name to whom the claim from a loss is to be paid] as loss payee, and;
b. Combined public liability and property damage insurance with limits as approved by
________ [Instruction: Insert Lessor or Lessee or them as applicable], naming
____________ [Instruction: Insert the other Party or them as applicable] as named
insured and a loss payee.
c. Commercial General Liability.
d. Lessor named as “Additional Insured” with regards to General Liability.
e. Waiver of Subrogation concerning Workers Compensation
The insurance shall be in such form and with such company or companies as shall be
reasonably acceptable to Lessor, shall provide at least ___________ (___) [◊Thirty (30)]
advance written notice to Lessor of any cancellation, change or modification, and shall
provide primary coverage for the protection of Lessee and Lessor without regard to any other
coverage carried by Lessee or Lessor protecting against similar risks. Lessee shall provide
Lessor with an original policy or certificate evidencing such insurance. Lessee hereby
appoints Lessor as Lessee's attorney in fact with power and authority to do all things,
including, but not limited to, making claims, receiving payments and endorsing documents,
checks, or drafts necessary or advisable to secure payments due under any policy of
insurance required under this Agreement.
Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. Lessee,
or Lessor at Lessee's expense, shall report, pay and discharge when due all license and
registration fees, assessments, sales, use and property taxes, gross receipts, taxes arising out
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of receipts from use or operation of the Equipment, and other taxes, fees and governmental
charges similar or dissimilar to the foregoing, together with any penalties or interest thereon,
imposed by any state, federal or local government or any agency, or department thereof,
upon the Equipment or the purchase, use, operation, or leasing of the Equipment or otherwise
in any manner with respect thereto and whether or not the same shall be assessed against or
in the name of Lessor or Lessee. However, Lessee shall not be required to pay or discharge
any such tax or assessment so long as it shall, in good faith and by appropriate legal
proceedings, contest the validity thereof in any reasonable manner which will not affect or
endanger the title and interest of Lessor to the Equipment; provided, Lessee shall reimburse
Lessor for any damages or expenses resulting from such failure to pay or discharge.
Lessee shall indemnify Lessor against, and hold Lessor harmless from, any and all claims,
actions, suits, proceedings, costs, expenses, damages, and liabilities, including reasonable
attorney's fees and costs, arising out of, connected with, or resulting from Lessee's possession
or use of the Equipment, including without limitation the manufacture, selection, delivery,
possession, use, operation, or return of the Equipment. Such indemnification shall survive the
expiration, cancellation, or termination of this Lease.
If the Lessor or the Lessee is in default under the lease contract, the party seeking
enforcement may reduce the other party's claim to judgment, or otherwise enforce the lease
contract by self-help or any available judicial or non-judicial procedure, including
administrative proceeding, arbitration, or the like.
Lessor shall be in default of this Lease if:
a. Lessor fails to deliver the Equipment in conformity to the lease contract; or
b. Repudiates the lease contract.
Lessee shall be in default of this Lease if:
a. Lessee wrongfully rejects or revokes acceptance of Equipment; or
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b. Lessee shall fail to make any payment due under the terms of this Lease for a period of
___________ (___) [◊ Ten (10)] days from the due date thereof; or
c. Lessee shall fail to observe, keep, or perform any other provision of this Lease; or
d. Lessee has made any misleading or false statement in connection with, application for, or
performance of this Lease; or
e. The Equipment or any part thereof shall be subject to any lien, levy, seizure, assignment,
transfer, bulk transfer, encumbrance, application, attachment, execution, sublease, or sale
without prior written consent of Lessor, or if Lessee shall actually or constructively
abandon the Equipment or permit any other entity or person to use the Equipment without
the prior written consent of Lessor, or
f. Lessee dies or ceases to exist; or
g. Any proceeding under the Bankruptcy Act, as amended, is commenced by or against the
Lessee, or if the Lessee is adjudged insolvent, or if Lessee makes any assignment for the
benefit of his creditors, or if a writ of attachment or execution is levied on the Equipment
and is not released or satisfied within a period of ___________ (___) [◊Ten (10)] days
thereafter, or if a receiver is appointed in any proceeding or action to which the Lessee is
a party with authority to take possession or control of the Equipment.
1. If Lessee is in default under the Lease contract the Lessor may:
a. cancel the lease contract;
b. proceed respecting Equipment not identified to the lease contract;
c. withhold delivery of the Equipment and take possession of Equipment previously
d. stop delivery of the Equipment by any bailee;
e. dispose of the Equipment and recover damages, or retain the Equipment and recover
damages, or in a proper case recover rent;
f. exercise any other rights or pursue any other remedies provided in the lease contract.
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2. If a Lessor does not fully exercise a right or obtain a remedy to which the Lessor is
entitled as per the foregoing, the Lessor may recover the loss resulting in the ordinary
course of events from the Lessee's default as determined in any reasonable manner,
together with incidental damages, less expenses saved in consequence of the Lessee's
3. If a Lessee is otherwise in default under a lease contract, the Lessor may exercise the
rights and pursue the remedies provided in the lease contract which may include a right to
cancel the lease.
1. If Lessor is in default under the Lease contract the Lessee may:
a. cancel the lease contract;
b. recover so much of the rent and security as has been paid and is just under the
c. cover and recover damages as to Equipment affected whether or not it has been
identified to the lease contract, or recover damages for non delivery;
d. exercise any other rights or pursue any other remedies provided in the lease contract.
e. if the Equipment has been identified, recover it; or
f. in a proper case, obtain specific performance or replevy the Equipment.
2. If a Lessor is otherwise in default under a lease contract, the Lessee may exercise the
rights and pursue the remedies provided in the lease contract, which may include a right
to cancel the lease.
3. If a Lessor has breached a warranty, whether express or implied, the Lessee may recover
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The parties hereby agree that this document contains the entire agreement between the parties
and this Agreement shall not be modified, changed, altered, or amended in any way except
through a written amendment signed by all of the parties hereto.
Any notice required or permitted under this Lease or under state law shall be deemed
sufficiently given or served if sent by United States certified mail, return receipt requested,
addressed as follows:
If to Lessor to: _____________________________________
If to Lessee to: _____________________________________
Lessor and Lessee shall each have the right from time to time to change the place notice is to be
given under this paragraph by written notice thereof to the other party.
If any provision of this agreement is held to be invalid, such invalidity shall not affect the
validity or enforceability of any other provision of this agreement.
Lessee shall not assign this Lease or its interest in the Equipment without the prior written
consent of Lessor.
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Headings used in this Lease are provided for convenience only and shall not be used to
construe meaning or intent.
19. Governing law
This Agreement shall be governed, construed and interpreted by, through and under the Laws
of the State of _____________________.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals as of the
date first here written
Name of Lessor
Name of Lessee
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[Instruction: Insert description of equipment to be leased]
Sl.No Manufacturer Model Quantity Serial Number
1 ABC K27 10 NA
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[Instruction: Insert Term and payment plan]
Term and Payment
Number of Rental Lease term Payable End of lease
amount + in months provision
S.NO payment __________ Monthly
taxes __________ Quarterly
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