Equipment Lease Agreement

What is an equipment lease agreement?

An equipment lease agreement is a legal document that sets out terms and conditions for hiring machinery, tools or other professional equipment. The two parties involved in this type of contract are an equipment provider and a renter. An equipment provider is an owner of the equipment, while a renter is an individual or business that requires th equipment for a long or short period of time.

When do you need an equipment lease agreement template?

A professionally drafted equipment rental agreement template is a practical legal solution for the following situations, for example:

• renting vehicles for various construction projects;
• leasing office equipment, including computer hardware;
• renting out agricultural equipment for harvesting purposes;
• professional rental businesses;
• leasing specialised machinery or tools for various one-off projects, etc.

This document is not suitable for the rental of residential or commercial property or for car hire businesses.

What are the key features of this equipment lease agreement template?

By customising your equipment lease agreement with FasterDraft, you gain access to the following benefits:

• a document that is tailored to your specific situation, rather than a generic document;
• a document written by real legal professionals, not generated by AI;
• a document with a clear structure that is written in plain English;
• a document that is ready for download immediately after the purchase;
• a template that is fully editable after the purchase in both PDF and Word formats.

What should be included in the equipment rental agreement template Australia?

Australian law does not provide specific requirements for an equipment lease agreement format. At the same time, inclusion of certain elements is essential to ensure the final document is complete.

Details of Parties

This section of an equipment lease agreement template includes identification information of both parties involved:

• full names;
• ACN and ABN numbers, where a party is a company or business;
• residential or business address;
• contact email and phone number.

If a renter is a company, the equipment provider may choose to limit usage of rental equipment to authorised company staff or to specific employees with the required education, skills or professional backgrounds.

Description of Equipment

Another important pillar for every equipment lease agreement template is a detailed description of the equipment to be provided, including:

• type, make and model;
• purpose of usage;
• quantity of equipment.

A detailed list of equipment usually is set out in a separate annex attached to the main agreement, while a summary can be included in the body of the document.

Rental Period

In Australia an equipment lease agreement can be of several types:

• ongoing lease;
• short-term lease;
• long-term lease.

If a period of lease is defined, the end date should be stated directly in the text of a document.

Rental Payments

Parties to an equipment rental agreement template can select one of several available payment models, such as:

• fixed fee paid once for the whole duration of the lease;
• daily fee;
• hourly fee.

Apart from that, an equipment provider may ask to pay an additional security deposit to cover potential loss or damage. The amount of security deposit is typically refunded at the end of the rental period.

Indemnity

This is one of the most important clauses in an equipment rental agreement template Australia as it helps to limit a provider’s liability for events beyond their control. These events include:

• injury, loss or damage caused to the client or their property while using equipment;
• costs associated with the use, storage or operation of equipment borne by the renter;
• claims made by third parties against the provider in relation to how a renter uses equipment, etc.

Limitation of Liability

The liability of an equipment provider under this equipment lease agreement template cannot be limited in relation to statutory rights guaranteed by Australian consumer law. These rights typically include:

• request for replacement of equipment;
• request for supply of equivalent equipment;
• request for repair of equipment.

How to customise an equipment rental agreement template with FasterDraft?

To get a fully customisable document template, follow the instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – equipment rental agreement PDF or Word.
4. E-sign online.
5. Make a payment.

The document is ready for instant download immediately after the purchase.