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Personal Property Lease--General Form
PERSONAL PROPERTY LEASE--GENERAL FORM
SECTION ONE
LEASE
[Name of lessor], of [Address of Lessor], State of [State of Lessor], Country of [Country of Lessor], engaged in the business of [Type of Business for Lessor], referred to as lessor in this agreement, leases to [Name of Lessee], of [Address of Lessee], engaged in the business of [Type of Business for Lessee], referred to as lessee in this agreement, and lessee hires from lessor, [Description of personal property or refer to personal property described in separate schedule, such as: all those furnishings described in the Schedule attached to and made a part of this lease or as in any subsequent schedules which may be made a part of this lease], on the following terms:
SECTION TWO
TERM
The term of this lease shall be for a period beginning [First Date of Lease], and ending [Last Date of Lease] or as set forth in Schedule attached to and made a part of this lease, or as in any subsequent schedules as may be made a part of this lease.
SECTION THREE
RENT
In consideration for the leasing of the above-described property, lessee agrees to pay to lessor, as rent for such property, the total sum of $ [Amount to pay for rent] Dollars, payable in monthly installments as follows: the sum of $ [Amount payable on execution of lease] Dollars upon the execution of this lease, receipt of which is acknowledged, in payment of rent for the period from [First date of initial rental period], to [Last date of initial rental period], the sum of $ [Amount of next rent payment] Dollars on [Date the Amount of next rent payment is due] and the sum of $ [Amount of Monthly Rent] Dollars on the [Day of the month rent is due], day of each succeeding month thereafter during the term of this lease. Any past due payment of rent will bear interest at the rate of [Interest Rate on past due payments] % percent per year. All payments subsequent to this lease will be made at the principal place of business of lessor at [Address for payment] or such other place as shall be designated by written notice from lessor to lessee, unless lessor shall assign this lease or the right to receive the rentals under the lease, in which case rentals shall be paid to lessors assignee, if any, after written notice of such assignment has been given to lessee by lessor.
SECTION FOUR
USE
Lessee shall use the property leased in a careful and proper manner and shall comply with all laws, ordinances, and regulations relating to the possession, use, or maintenance of the property. Such property shall be used only for the purpose of [Type of use for property]. If at any time during the term of this lease lessor supplies lessee with labels, plates, or ether markings stating that the property is owned by lessor, lessee shall affix and keep them in a prominent place on the property.
SECTION FIVE
INSPECTION BY LESSEE
Lessee shall inspect the property within hours after receipt of such property. Unless lessee within such period of time gives written notice to lessor specifying any defect in or other proper objection to the property, lessee agrees that it shall be conclusively presumed, as between lessor and lessee, that lessee has fully inspected and acknowledged that the property is in good condition and repair, and that lessee is satisfied with and has accepted the property in such good condition and repair.
SECTION SIX
INSPECTION BY LESSOR
Lessor shall at all times during business hours have the right to enter on the premises where the property may be located for the purpose of inspecting it or observing its use. Lessee shall give lessor immediate notice of any attachment or other judicial process affecting any item leased and shall, whenever requested by lessor, advise lessor of the exact location of the item.
SECTION SEVEN
ALTERATIONS
Lessee agrees that it will make no alterations in the leased property without obtaining prior written permission from lessor or, where appropriate: Lessee is given the right to make alterations, additions, or improvements to the property, so long as its value is not reduced thereby. All additions to and improvements of the property of any kind shall immediately become the property of the lessor and subject to the terms of this lease.
SECTION EIGHT
MAINTENANCE AND REPAIR
Lessee, at its own cost and expense, shall keep the property leased in good repair, condition, and working order, and shall furnish all parts required to keep it in good working order. Lessee shall not remove, alter, disfigure, or cover up any numbering, lettering, or insignia displayed upon the leased property, and shall see that the property is not subjected to careless or needlessly rough usage.
SECTION NINE
LOSS AND DAMAGE
Lessee assumes all risk of loss of and damage to the property leased from any cause. No loss or damage to the property leased shall impair any obligation of lessee under this lease, which shall continue in full force and effect. In the event of loss of or damage to the property leased, lessee at the option of lessor shall:
(a) Place the property in good repair;
(b) Replace the property with like property in good repair, which property shall then become subject to this lease; or
(c) Pay lessor therefor in cash the Stipulated Loss Value as set forth in Schedule or as in any subsequent schedules which may be made a part of this lease. Upon such payment this lease shall terminate with respect to the property so paid for and lessee then shall become entitled to the property, as the owner of such property.
SECTION TEN
RETURN OF LEASED PROPERTY
On expiration or earlier termination of this lease, with respect to the leased property, lessee shall, unless lessee has paid lessor in cash the Stipulated Loss Value of the property pursuant to Section Nine above, return the property to lessor in good repair, ordinary wear and tear resulting from proper use of such property alone excepted, in the following manner as may be specified by lessor:
(a) By delivering property at lessees expense to such place as lessor shall specify within the county in which the property was delivered to lessee or to which the property was removed with the written consent of lessor; or
(b) By loading property at lessees cost on board such carrier as lessor shall specify and shipping the property, freight collect, to the destination designated by lessor.
Such conditions for return of the leased property are subject to lessees option to purchase it as set out in this agreement.
SECTION ELEVEN
INSURANCE
Lessee, at its own expense, will maintain the leased property insured for such risks and in such amounts as lessor may require with carriers acceptable to lessor, will maintain a loss payable endorsement in favor of lessor affording to lessor such additional protection as lessor may require, and will maintain liability insurance satisfactory to lessor. All such insurance will name lessor and lessee as insureds. The policies will provide that they may not be cancelled or altered without at least days prior written notice to lessor, and the loss payable endorsement will provide that all amounts payable by reason of loss of or damage to the property will be payable only to lessor. Lessee will deliver to lessor evidence satisfactory to lessor of all such insurance. If loss or damage occurs under circumstances in which lessee is not in violation of the terms of any such policies, and if lessee has fulfilled its obligations under Section Nine of this lease, and is not otherwise in default under this lease, lessor will pay lessee so much of any insurance proceeds received by lessor as the result of such loss as will fully reimburse lessee for the net expense it incurs in fulfilling its obligations under Section Nine.
SECTION TWELVE
TAXES AND FEES
Lessee will pay all license fees, assessments, and sales, use, property, and other taxes now or in the future imposed on the leased property by reason of ownership, leasing, renting, sale, possession, or use, whether they be assessed to lessor or lessee, together with any penalties or interest in connection with such charges, excepting federal, state, or local governmental taxes, or payments in lieu of such taxes, imposed on or measured by income of the lessor. If any tax is, by law, to be assessed or billed to lessor, lessee at its expense will do anything required to be done by lessor in connection with the levy, assessment, billing, or payment of such tax, and is authorized by lessor to act on lessors behalf in such respects; lessee will cause all billings of such taxes to lessor to be made to lessor in care of lessee and will from time to time, on request of lessor, submit written evidence of the payment of all of the governmental obligations mentioned in this section.
Lessee will, on any property tax returns required to be filed by it, include the property covered by this lease or any substitutions or additions to this lease as property owned by the lessee for purposes of tax assessments. It is expressly agreed that lessee will not, without obtaining prior written permission of lessor, assert on its behalf, or on behalf of lessor, any immunity from taxation based on the tax-exempt status, if any, of the lessor.
SECTION THIRTEEN
LESSEES FAILURE TO MAINTAIN INSURANCE OR PAY TAXES
Should lessee fail to make any payment or do any act as provided in Sections 11 or 12 of this lease, then lessor will have the right, but not the obligation, without notice to or demand on lessee, and without releasing lessee from any obligation under this lease, to make or do the same, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of lessor appears to affect the leased property, and in exercising any such rights, incur any liability and expend whatever amounts in its discretion it may deem necessary therefor. All expenses so incurred by lessor will be without demand immediately due and payable by lessee and will bear interest at the rate of [Interest Rate on expenses incurred by lessor] % percent per year thereafter until paid.
SECTION FOURTEEN
WARRANTIES
Lessee acknowledges that the leased property is of a size, design, capacity, and manufacture selected by lessee. LESSOR IS NOT A MANUFACTURER OF THE PROPERTY OR A DEALER IN SIMILAR PROPERTY AND HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION, WARRANTY, OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE CONDITION, QUALITY, DURABILITY, SUITABILITY, OR MERCHANTABILITY OF THE LEASED PROPERTY. Lessor will, however, take any steps reasonably within its power to make available to lessee any manufacturers or similar warranty applicable to the leased property. Lessor shall not be liable to lessee for any liability, loss, or damage caused or alleged to be caused directly or indirectly by the leased property by any inadequacy of such property or defect therein or by any incident in connection therewith.
SECTION FIFTEEN
INDEMNITY
Lessee will indemnify lessor against, and hold lessor harmless from, all claims, actions, proceedings, costs, damages, and liabilities, including attorneys fees, arising out of, connected with, or resulting from the leased property, including without limitation the manufacture, selection, delivery, possession, use, operation, or return of such property.
SECTION SIXTEEN
DEPOSIT OF SECURITY
Lessor acknowledges that lessee has deposited with lessor as security, the sum of $ [Amount of Deposit] Dollars and agrees that such deposit shall be security for performance of lessees obligations under this lease. Such sum may, at lessors option, be applied to satisfy any such obligation which may be in default, but the making of such deposit will not excuse lessee from performance of any such obligation. Any portion of such sum which has not been so applied by lessor will be returned to lessee at the termination of this lease.
SECTION SEVENTEEN
DEFAULT
The occurrence of any of the following events will, at the option of the lessor, terminate this lease and lessees right to possession of the property leased:
(a) The nonpayment by lessee for a period of days of any sum required under this lease to be paid by lessee.
(b) The default by lessee under any other term, covenant, or condition of this lease which is not cured within days after notice from lessor.
(c) The subjection of any of lessees property to any levy, seizure, assignment, application, or sale for or by any creditor or governmental agency.
On the happening of any of the above events, lessor may without notice to or demand on lessee:
(a) Take possession of the leased property and lease the property or any portion of the property to such persons, for such period, and at such rental as lessor shall elect, and apply the proceeds of any such leasing, after deducting all costs and expenses incurred in connection with the recovery, repair, storage, and leasing of the property, in payment of the rent and other obligations due from lessee to lessor hereunder, lessee remaining responsible for any deficiency.
(b) Take possession of the leased property and sell it or any portion of the property at public or private sale and without demand or notice of intention to sell, and apply the proceeds of any such sale, after deducting all costs and expenses incurred in connection with the recovery, repair, storage, and sale of the property and any rentals and other obligations of lessee then due under this lease, against the Stipulated Loss Value of the property sold. If the proceeds, after the permitted deduction, are less than the Stipulated Loss Value, lessee shall immediately pay lessor the difference.
SECTION EIGHTEEN
OFFSET
Lessee waives any existing and future claims and offsets against rent or other payments due under this lease, and agrees to pay such rent and other amounts regardless of any offset or claim that may be asserted by lessee or on lessees behalf.
SECTION NINETEEN
EFFECT OF WAIVER
No delay or omission to exercise any right, power, or remedy accruing to lessor on any breach or default of lessee under this lease shall impair any such right, power, or remedy of lessor, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default. Any waiver, permit, consent, or approval of any kind or character on the part of lessor of any breach or default under this lease, or any waiver on the part of lessor of any provision or condition of this lease, must be in writing and be effective only to the extent in such writing specifically set forth. All remedies, either under this lease or by law, or otherwise afforded to lessor, shall be cumulative and not alternative.
SECTION TWENTY
ATTORNEYS FEES
In the event of any action filed in relation to this lease [lessee, in addition to all other sums that lessee may be called on to pay, will pay to lessor a reasonable sum for lessors attorneys fees or the unsuccessful party in such litigation will pay to the successful party, in addition to all other sums that either party may be called on to pay, a reasonable sum for the successful partys attorneys fees].
SECTION TWENTY-ONE
ASSIGNMENT OR SUBLEASE
Without the prior written consent of the lessor, lessee shall not (a) assign, transfer, pledge, or hypothecate this lease, the leased property or any part of such property, or any interest in it; (b) sublet or lend the property leased or any part of such property; or (c) permit the property leased or any part of such property to be used by anyone other than lessee or lessees employees. Lessor may assign its interest, or a part of such interest, in this lease.
SECTION TWENTY-TWO
LOCATION OF PROPERTY LEASED
Lessee will not, without prior written consent of lessor, permit the property leased to be removed from [Location of Property].
SECTION TWENTY-THREE
OWNERSHIP
The property leased is and will at all times remain the sole property of lessor, and lessee shall have no right, title, or interest therein except as expressly set forth in this lease.
SECTION TWENTY-FOUR
PERSONAL PROPERTY
The property leased is, and shall at all times remain, personal property, notwithstanding that it or any part of it may now be, or may in the future become, in any manner attached to, or embedded in, or permanently resting on, real property or any building on such real property, or attached in any manner to what is permanent as by means of cement, plaster, nails, bolts, or screws.
SECTION TWENTY-FIVE
APPLICABLE LAW
This lease shall be governed by and construed under the laws of the State of [State of Jurisdiction].
SECTION TWENTY-SIX
SUSPENSION OF OBLIGATIONS OF LESSOR
The obligations of lessor under this lease shall be suspended to the extent that it is hindered or prevented from complying with those obligations because of labor disturbances, including strikes and lockouts, acts of God, fires, storms, accidents, governmental regulations, or interferences or any cause whatsoever beyond the control of lessor.
SECTION TWENTY-SEVEN
RECORDS AND STATEMENTS
Lessee will keep books and records in accordance with good accounting practice and will deliver to lessor financial and profit and loss statements in such form and at such time as lessor may require. Lessee shall permit lessor to examine and audit the books of lessees business.
SECTION TWENTY-EIGHT
NOTICES
Any communications between lessor and lessee, payments, and notices provided herein to be given or made, may be given or made by mailing them to lessor at [Address of lessor for communications], and to lessee at [Address of lessee for communications], or to such other addresses as either party may indicate in writing.
SECTION TWENTY-NINE
OPTION TO PURCHASE
Lessor grants to lessee the option to purchase the personal property leased in this agreement, provided that lessee gives notice to lessor, in writing, of its intention to exercise such option during the period of (90) days immediately preceding the expiration of this lease, and provided further that lessees right to so purchase the property is conditioned upon lessees complete performance of all the terms and provisions of this lease on its part to be performed, including full payment of the rental as specified. Should lessee exercise the option, [all sums or percent [%] of the sum] paid as rent under this lease shall be applied to the purchase price of the personal property leased in this agreement, and on receipt of the balance of the purchase price by lessor, together with a sum equal to any new or applicable unpaid sales and use taxes, lessor will transfer title of such personal property to lessee, and will deliver, on lessees written request, written evidence of the transfer of such title.
The option purchase price herein is, $ [Purchase price or the reasonable market value of the property as of (date), as established by (Name of Appraiser)].
SECTION THIRTY
ARBITRATION
In the event that lessor and lessee are unable to agree on any question arising under this lease, the dispute shall be [Name of Arbitrator] of [Address of Arbitrator] for arbitration and determination, and [his or her] decision shall be final and conclusive on the parties.
Dated [Date signed].
Signature
Signature