This lease agreement form has been prepared assuming that the Equipment is being leased for business purposes and the Federal Consumer Leasing Act therefore does not apply. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Lease of Equipment with Option to Purchase Lease Agreement made on the (date), between (Name of Lessee) of (street address, city, state, zip code), referred to herein as Lessee, and (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 Lessee. For and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the parties agree as follows: 1. Lease of Equipment Lessor leases to Lessee the Equipment described in Exhibit A attached hereto and made a part hereof (the Equipment), for the period of (number) months commencing from the date of shipment by Lessor and upon the following conditions and agreements. 2. Delivery and Return of Property Lessor shall ship Equipment to (street address, city, state, zip code), with freight prepaid. At the end of the term of the Lease, Lessee shall return the Equipment, with freight prepaid, to Lessor at the place from which Equipment was shipped in as good condition as exists at the commencement of the term, reasonable wear and tear excepted. The Equipment shall be subject to inspection by Lessor before returned to Lessor and if a reasonable price for restoring the Equipment to such condition cannot be agreed upon, the disagreement will be handled by Arbitration as described in Section 14 below. 3. Rent Lessee shall pay as rent $____________, which includes interest at ____% at the office of Lessor at (street address, city, state, zip code), in (number) successive monthly installments of $______________ each, payable in advance on the first day of the month beginning with (date), plus $_______________to be paid as the last payment. 4. Title to Equipment Unless the Equipment is purchased by Lessee as provided below and until full payment of such purchase price in cash, and any interest due, the Equipment and all its parts shall retain its character as personal property and the title to the Equipment shall not pass to Lessee but shall remain in Lessor. Lessee shall not remove, conceal, or otherwise interfere with the title or ownership plate of Lessor affixed to the Equipment until and unless the Equipment is purchased and full payment is made as provided in this Agreement. 5. Option to Purchase Lessor hereby grants to Lessee the option to purchase the Equipment at any time during the term of this Lease upon payment of $______________. If Lessee exercises this option, all of the rental payments made pursuant to this Agreement shall be applied to the purchase price, and the balance of the purchase price shall be paid in cash. The parties agree that THERE ARE NO EXPRESS WARRANTIES OTHER THAN THOSE APPEARING IN THIS AGREEMENT AND THERE ARE NO IMPLIED WARRANTIES, EITHER OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, IN CONNECTION WITH EITHER THE LEASE OF THE EQUIPMENT OR ANY EXERCISE OF THE OPTION TO PURCHASE UNDER THIS AGREEMENT. 6. Repossession If Lessee shall sell, assign, or attempt to sell or assign the Equipment or any interest in the same, or if Lessee defaults in any of the covenants, conditions, or provisions of this Lease, it is agreed that Lessor may immediately and without notice take possession of the Equipment wherever found and may remove and keep or dispose of the Equipment, and any unpaid rentals shall at once become due and payable. If any step is taken by legal action or otherwise by Lessor to recover possession of the Equipment or otherwise enforce this Agreement or to collect moneys due under this Agreement, then Lessee shall reimburse Lessor for its expenses and charges incurred for such purpose, including reasonable attorney's fees. 7. Use and Location of Equipment Lessee shall use the Equipment only at (street address, city, state, zip code), and shall not at any time remove the Equipment from that place except in returning the Equipment to Lessor or except as may be permitted by Lessor in writing. Lessee shall use the Equipment at all times in a workmanlike manner and in such manner as will not injure the same except by the ordinary wear and tear of the Equipment when in good workmanlike use. Lessee shall at its own e
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