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Every equipment lease should include the following fundamental contract elements: Lessor: The equipment owner who will be renting out the equipment. Lessee: The renter who will be paying for the privilege to use the gear. Term: The length of time the lessee will lease the equipment.
Yes, Microsoft Word has a free lease agreement template that you can customize to create your own contract and minimize any potential problems between tenant and landlord.
The terms of an indemnification agreement ensure that you are not held liable for any contract-related loss or damage outside of your control.
The indemnification clause in an equipment rental contract outlines who's responsible if something goes wrong while the equipment is in the customer's possession. In this clause, you should outline any specific rules or restrictions regarding how the equipment should be used.
In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party's actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.
Indemnification is the assumption of another party's liability under a contract, such as a lease. Therefore, under an indemnification clause, tenants typically agree to reimburse the landlord, or pay directly, ?all losses, claims, suits, liability, and expense? related to a liability situation.
In commercial contact agreements, an indemnity clause helps determine where the risk involved in the agreement is allocated between the two parties involved. The term ?indemnification,? also referred to as ?indemnity,? refers to when one party involved in a contract compensates the other party for costs and expenses.
For leases generally exceeding one year the applicable accounting rules dictate that the lessee account for a leased asset as though it has been purchased. The lessee records the leased right as an item of property, plant, and equipment, which is then depreciated over its useful life to the lessee.