Part 2: Additional Terms for Equipment Leases
In our last article for businesses, we identified some necessary equipment lease agreement terms and defined the purpose of each. In this article, we highlight some additional terms to consider adding to a standard lease agreement. As always, you should have an experienced business transactions attorney review your standard lease agreement periodically to ensure you are adequately protected.
- Insurance. You may require the lessee to carry certain types of insurance, including renter's and general liability.
- Choice of law, venue or waiver of jury trial. Your lease can include a mandatory arbitration clause, or may require a conflict be litigated in a particular state or venue if options exist.
- 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.
The slow progress of the U.S. economic recovery is expected to push small businesses toward leasing equipment rather than purchase equipment outright. Lessors should be prepared for the spike in business by having lease agreements reviewed and revised if necessary.
If your business leases equipment to consumers or other businesses, be sure to consult an experienced business law attorney to take a look at your lease agreement. To speak to a knowledgeable Bryan, Texas business attorney, contact the Peterson Law Group at 979-703-7014 or contact us online to schedule a consultation.