As we discussed in our last article, there are many potential terms to consider when drafting your standard equipment lease. We identified some necessary terms and defined the purpose of each. In this post we will discuss some additional lease terms to consider adding to a standard lease agreement, depending on your industry and the expected lease duration.
1. Insurance. You may require that the lessee carry certain types of insurance, including renter’s and general liability.
2. Choice of law, venue, or waiver of jury trial. This clause may include a mandatory arbitration clause, or may require a conflict be litigated in a particular state or venue if options exist.
3. Late fees and interest. Industry customs vary, so consider what the competition is doing when deciding whether to include this clause in your standard lease.
Another issue we discussed recently is that the tentative economic recovery is expected to spur small businesses to lease equipment rather than buy. Vendors who have inventory in place should be able to take advantage of the leasing trend before the competition catches on. Now is a good time to get those lease agreements updated and ready to present to potential customers.
The attorneys at the Scolieri Law Group, P.C. provide cost-effective legal advice for all aspects of managing your business, including reviewing and structuring equipment leases for owners or lessors.
For more information about preparing an equipment rental lease, or any other questions about business contracts, contact the attorneys at the Scolieri Law Group, P.C. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can take care of the details for you every step of the way. Contact us today at (412) 765-0546 or via email at firstname.lastname@example.org.