Cedar Rapids Equipment Lease Lawyers
Cedar Rapids equipment lease lawyers know how valuable the right equipment can be in creating profit for companies. Whether you are looking to lease a piece of equipment for your business or want to lease out your equipment to another company, creating a comprehensive equipment lease agreement is critical to ensure your interests are protected. Moreover, if you are currently leasing equipment and a disagreement arises in regards to the terms of the lease, a lawyer can help you work through the legal process of a contract dispute.
At Arenson Law Group, PC, our lawyers understand the nuances of business agreements and can help you work through any complicated issues that may arise.
Terms Included in a Lease Agreement
Although it may seem like a simple exchange of product and money, equipment leases actually encompass a multitude of issues. Some terms that may come up when a lease agreement is being negotiated are:
- Dates of the lease
- Rent and deposit required
- Loss and damage
It is important that an attorney experienced in business law review your equipment lease agreement to avoid future conflict. If you would like to contest aspects of a lease agreement you are already involved in, it could be critical to hire the right legal team to advocate for you.
Frequently Asked Questions
Leasing agreements are complex, and at times can seem overwhelming. For your convenience, we have included the answers to a few of the questions we hear the most at our firm below.
Why do I need a business equipment lease lawyer?
As with any legal contract, it is important to have lease agreements reviewed by an experienced business equipment lease lawyer. A lawyer will help you draft a comprehensive and legally-binding lease agreement for equipment that is needed for your business. In addition, a lease agreement lawyer can inform you of your rights and responsibilities as a business owner, informing you of the advantages and drawbacks associated with each type of leasing option and drafting an appropriate agreement accordingly.
In drawing up a lease agreement, you need a lawyer to help negotiate the best possible leasing terms from a financial and legal standpoint. A lawyer can ensure that a property or equipment leasing agreement will also protect your business for liability to third parties if the equipment is defective.
There are a number of situations in which an unfavorable agreement could harm your business. An equipment lease agreement lawyer can handle the paperwork and contract negotiation and may be able to help you avoid costly problems with your equipment in the future.
Why does my business need an equipment lease?
The decision to lease equipment is dependent upon the type of industry, the size of the workforce, and the financial situation of a business. In some cases, it may be more beneficial for a company to lease equipment rather than purchase equipment on their own. This scenario makes more sense when business equipment requires frequent repairs or replacement or when the company has limited purchasing power due to budget constraints. In some instances, a business may make a decision to lease equipment because it is an easy way to try out the equipment before investing in a costly purchase.
Business equipment that is commonly leased includes computers, servers, copy machines, office or restaurant furniture, industrial appliances, machinery, and vehicles.
What are the types of business equipment lease agreements?
There are generally two types of agreements for the leasing of business equipment. One type is a called a capital lease, and it’s used for equipment that a company wishes to purchase at the end of the lease term. With this type of agreement, the business experiences the pros and cons of purchasing their own equipment. All assets and liabilities that relate to the business equipment are placed on a company’s balance sheet and considered part of a company’s assets.
Another type of equipment lease is an operating lease. This type of lease does not include business equipment as part of a company’s assets. With this particular lease agreement, the lender owns the equipment and is responsible for any depreciation of costs. An operating lease is used when a business is planning on replacing equipment at the end of the lease, and the equipment has a short shelf life.
What details should be included in an equipment lease agreement?
Important details that should be included when drawing up a leasing agreement can include the dates of the lease, the type of lease, the length of terms for the lease, deposits and rent requirements, indemnity and property insurance, and tax issues. Other issues, such as how to handle employee injuries caused by the equipment, what party is responsible for equipment upgrades and maintenance, the termination of a lease/contract, the handling of the repossession of equipment, and any breach of contract should also be included.
Consult a Business Law Attorney in Cedar Rapids
The Cedar Rapids business law attorneys at Arenson Law Group, PC, know how difficult the leasing process can be for those wishing to enter into an equipment agreement or those in the midst of a contract dispute. Our legal team is committed to helping those with equipment leasing needs through the contract process. Discuss your situation today by calling our offices at (319) 363-8199.
Written by James H. ArensonLast Updated : December 3, 2021