Free Business Asset Lease Agreement Creator - Create Online



Business Asset Lease Agreement template
Business Asset Lease Agreement sample


What is Business Asset Lease Agreement?

Business Asset Lease Agreement An agreement for leasing business assets, specifying leased assets, terms, rental payments, and responsibilities.



Sample template:



BUSINESS ASSET LEASE AGREEMENT


This Business Asset Lease Agreement (the "Agreement") is entered into as of [Effective Date], by and between BeanTaste Equipment Rentals LLC, a [State] limited liability company ("Lessor"), and Freshbrew Cafe Inc., a [State] corporation ("Lessee") (collectively, the "Parties").

1. LEASE OF EQUIPMENT

1.1. Lease and Description


Lessor hereby agrees to lease to Lessee, and Lessee agrees to lease from Lessor, the following described personal property (the "Equipment"): One (1) Commercial-Grade Espresso Machine (“Espresso Machine”), suitable for use in coffee shops and cafes.



2. TERM AND TERMINATION

2.1. Term


The term of this Agreement shall commence on the Effective Date and continue for a period of [Lease Term, e.g., twelve (12) months] (the "Term"), unless sooner terminated in accordance with the provisions of this Agreement. Lessee shall have the right to terminate this Agreement upon thirty (30) days prior written notice to Lessor.



2.2. Return of Equipment


Upon the expiration or termination of this Agreement, Lessee shall, at its own expense, return the Equipment to Lessor in the same condition as when received, reasonable wear and tear excepted.



3. RENTAL PAYMENTS

3.1. Rent


Lessee agrees to pay Lessor, without demand, abatement, or setoff, a monthly rent of $[Rent Amount] (the "Rent") for the Equipment during the Term. Rent shall be due and payable in advance on the first day of each month, commencing with the first month of the Term.



3.2. Late Charges


If any Rent payment is not received by Lessor within [Late Fee Grace Period, e.g., five (5) days] after its due date, Lessee shall pay Lessor, as a late charge, an amount equal to five percent (5%) of the overdue Rent.



4. MAINTENANCE AND REPAIRS

4.1. Lessee's Responsibilities


Lessee shall, at its own expense, keep the Equipment in good operating condition, allowing for reasonable wear and tear, and shall maintain the Equipment in accordance with the manufacturer's recommended maintenance schedule. Lessee shall be responsible for all costs associated with routine maintenance and repairs of the Equipment during the Term, including labor, materials, and parts.



4.2. Lessor's Responsibilities


Except as otherwise provided herein, Lessor shall, at its sole cost and expense, make all necessary repairs or replacements to the Equipment due to defects in materials or workmanship that arise under normal use, provided that Lessee promptly notifies Lessor in writing of any defects discovered.



5. INSURANCE AND INDEMNITY

5.1. Insurance


Lessee shall, at its own expense, obtain and maintain in force during the Term, insurance policies protecting against loss or damage to the Equipment, with such coverage and in such amounts as Lessor may reasonably require. Lessee shall provide Lessor with certificates of insurance evidencing such coverage upon request.



5.2. Indemnity


Lessee shall indemnify, defend, and hold harmless Lessor from and against any and all claims, actions, suits, costs, liabilities, damages, and expenses (including reasonable attorneys' fees) arising from or in connection with the possession, use, operation, maintenance, or return of the Equipment, except to the extent caused by Lessor's gross negligence or willful misconduct.



6. OPTION TO PURCHASE

At the end of the Term, and provided Lessee is not in default under this Agreement, Lessee shall have the option to purchase the Equipment for a purchase price equal to the fair market value of the Equipment, as determined in good faith by Lessor and Lessee. If Lessee elects to exercise this option, Lessee shall provide Lessor with written notice of intent to purchase no later than thirty (30) days before the expiration of the Term.



7. GOVERNING LAW AND DISPUTE RESOLUTION

This Agreement shall be governed by, and construed in accordance with, the laws of the United States and the State of [State], without regard to its conflicts of law principles. Any dispute arising out of or relating to this Agreement shall be resolved through good faith negotiation, or, failing such negotiation, through binding arbitration in accordance with the rules of the American Arbitration Association, with the prevailing party entitled to its reasonable attorneys' fees and costs.



8. MISCELLANEOUS

This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof, and supersedes any prior negotiations, understandings, or agreements between them, whether written or oral. This Agreement may be amended or modified only in a writing signed by both Parties. A waiver of any right or remedy hereunder shall be effective only in writing, and no such waiver shall constitute a waiver of any other right or remedy. If any provision of this Agreement is held to be invalid or unenforceable, the validity and enforceability of the remaining provisions shall not be affected. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.



IN WITNESS WHEREOF, the Parties have executed this Business Asset Lease Agreement as of the date first written above.

LESSOR: LESSEE:

BeanTaste Equipment Rentals LLC Freshbrew Cafe Inc.

By: ____________________________ By: ____________________________
Name: ___________________________ Name: ___________________________
Title: ___________________________ Title: ___________________________

Ready to proceed?


Login to Create your Business Asset Lease Agreement now




Main Sections of a Business Asset Lease Agreement


In this Business Asset Lease Agreement, you will see the following sections:

  1. Lease of Equipment
  2. Term and Termination
  3. Rental Payments
  4. Maintenance and Repairs
  5. Insurance and Indemnity
  6. Option to Purchase
  7. Governing Law and Dispute Resolution
  8. Miscellaneous


About each Section - Analysis and Summary:

  1. Lease of Equipment : This section outlines the agreement between the Lessor (BeanTaste Equipment Rentals LLC) and the Lessee (Freshbrew Cafe Inc.) to lease a commercial-grade espresso machine. It's like renting a car, but in this case, it's an espresso machine for use in a coffee shop.

  2. Term and Termination : This section specifies the duration of the lease (e.g., 12 months) and the conditions under which the lease can be terminated early. It also explains the process for returning the equipment at the end of the lease. Think of it as the start and end dates of a gym membership, with rules for canceling before the membership expires.

  3. Rental Payments : This section details the monthly rent amount and payment schedule for the leased equipment. It also explains the late fees that will be charged if the rent is not paid on time. It's like paying rent for an apartment, but for the espresso machine instead.

  4. Maintenance and Repairs : This section outlines the responsibilities of both parties for maintaining and repairing the equipment. The Lessee is responsible for routine maintenance and repairs, while the Lessor is responsible for fixing defects in materials or workmanship. It's similar to the responsibilities of a tenant and landlord for maintaining a rental property.

  5. Insurance and Indemnity : This section requires the Lessee to obtain insurance for the equipment and indemnify (protect) the Lessor from any claims or damages related to the equipment's use. It's like having car insurance to cover any accidents or damages that may occur while driving a rented car.

  6. Option to Purchase : This section gives the Lessee the option to buy the equipment at the end of the lease term for its fair market value. It's like having the option to buy the car you've been leasing if you decide you want to keep it after the lease is up.

  7. Governing Law and Dispute Resolution : This section states that the agreement is governed by the laws of a specific state and that any disputes will be resolved through negotiation or arbitration. It's like agreeing to follow the rules of a specific playground and resolving any disagreements through a neutral third party.

  8. Miscellaneous : This section covers various general provisions, such as the entire agreement between the parties, amendments, waivers, and the binding nature of the agreement. It's like the "catch-all" drawer in your kitchen, containing various items that don't fit neatly into other categories.

Ready to get started?

Create your Business Asset Lease Agreement now