VIEWS: 83 PAGES: 3 CATEGORY: Business and Corporate Agreements POSTED ON: 4/23/2011
The Consumer Credit Protection Act requires disclosure in various types of financial transactions. Title I, the Truth in Lending Act (TILA), requires full disclosure of credit terms by a creditor prior to entering into consumer loans or "credit sales" of property or services. The Consumer Leasing Act subsequently enacted as a subchapter of the Truth in Lending Act, requires lessors to meet similar disclosure requirements prior to entering into consumer leases. However, a consumer lease means a contract in the form of a bailment or lease for the use of personal property by a natural person primarily for personal, family, or household purposes, for a period exceeding four months and for a total contractual obligation not exceeding $25,000. We are assuming that this lease of is not covered the this Act and therefore such disclosures are not necessary.
Contract for the Lease of Personal Property Contract made on the (date), between (Name of Lessor), a corporation organized and existing under the laws of the state of ______________, with its principal office located at (street address, city, state, zip code), referred to herein as Lessor, and (Name of Lessee), a corporation organized and existing under the laws of the state of ______________, with its principal office located at (street address, city, state, zip code), referred to herein as Lessee. Whereas, Lessor and Lessee (sometimes referred to herein as the Parties) have entered into an Asset Purchase Agreement, a copy of which is attached hereto as Exhibit A and made a part hereof by reference; and Whereas, the Parties desire to enter into this Contract to last until the consummation of said Asset Purchase Agreement; Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the parties agree as follows: I. Lease of Personal Property A. Lease. Lessor hereby demises and leases to Lessee and Lessee hereby takes and rents from Lessor that certain personal property described in Exhibit B attached hereto and incorporated herein by reference, together with all additions and substitutions thereto (hereinafter called the Property). B. Term. The initial term of the Lease shall begin on the (date), and shall terminate on the Closing Date of that certain Asset Purchase Agreement between the parties dated (date), or upon the termination of said Asset Purchase Agreement whichever shall first occur. C. Repairs All repairs, maintenance, replacement or reconstruction of whatever kind or nature to the Property are to be made by Lessee at Lessee's expense. If Lessee fails to make such repairs or replacements promptly or within fifteen (15) days of occurrence, Lessor may, at its option, make such repairs or replacements and Lessee shall repay the costs thereof to Lessor on demand. If the Asset Purchase Agreement is terminated, Lessee shall deliver up the Property to the Lessor in good condition, ordinary wear and tear excepted. D. Assignment and Subleasing Lessee shall not have the right to assign this Lease nor sublet the Property in whole or in part without first procuring the written consent of the Lessor. After any consent to assignment or sublease, Lessee shall remain fully liable for payment of rent and other covenants and obligations of the Lessee herein contained. E. Indemnity. Lessee agrees to indemnify and hold harmless Lessor from any liability arising out of Lessee's use of the Property during the term of this Contract. II. Relationship of Parties It is understood and agreed that the relationship of the parties hereto is strictly that of Lessor and Lessee and that the Lessor has no ownership in the Lessee's enterprise and the Contract shall not be construed as a joint venture or partnership. The Lessee is not and shall not be deemed to be an agent or representative of the Lessor. III. Contract Binding on Assigns All covenants, conditions, agreements and undertakings contained in this Contract shall extend to and be binding on the respective heirs, successors and assigns of the respective pa
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