If an individual or company (''Lessee'') is renting equipment from the equipment owner (''Lessor'), an equipment lease agreement will be used. The document will cover the equipment the lessee is leasing, the term length of the lease, and condition of the equipment when received. Repair conditions for the equipment may appear in the document as well.
The agreement may contain terms regarding payment amount, a payment schedule, late charges if applicable, and a security deposit. The agreement will designate who is responsible for delivery of the equipment during the life of the lease agreement. If the lessee defaults on their obligations, the contract will contain the penalties.
The lease will include details on what operators are permitted to use the equipment, as well as what is considered proper use, and the terms of severability of the contract. The parties shall agree under which state of governing law the document is signed.
If either party requires notice regarding the lease, the agreement will specify how notice to the agreement shall be delivered. To protect their interests, the equipment agreement will contain clauses regarding taxes, waiver of a party's right and indemnification.