Business Asset Lease Agreement An agreement for leasing business assets, specifying leased assets, terms, rental payments, and responsibilities.
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.
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.
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.
4.1. 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.
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.
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.
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.
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.
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.
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In this Business Asset Lease Agreement, you will see the following sections:
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