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Equipment Lease To Own Agreement
"I need an Equipment Lease To Own Agreement for a manufacturing business in Manila, covering a single industrial printing press valued at ₱5,000,000, with a 36-month lease term starting March 1, 2025, and monthly payments with a purchase option exercisable after 24 months."
1. Parties: Identification of the Lessor and Lessee with complete legal names and addresses
2. Background: Context of the agreement, including the Lessor's ownership of the equipment and Lessee's desire to lease with option to purchase
3. Definitions: Key terms used throughout the agreement including Equipment, Lease Period, Purchase Option, and Payment Terms
4. Equipment Description: Detailed description of the leased equipment including make, model, serial numbers, and condition
5. Lease Term: Duration of the lease period and conditions for renewal or extension
6. Rental Payments: Payment amount, schedule, method, and late payment penalties
7. Purchase Option: Terms and conditions for exercising the purchase option, including purchase price calculation
8. Title and Ownership: Clarification of ownership during lease period and transfer conditions
9. Delivery and Acceptance: Terms for equipment delivery, installation, and acceptance testing
10. Use and Maintenance: Permitted use, maintenance responsibilities, and condition requirements
11. Insurance: Required insurance coverage and responsible party
12. Default and Remedies: Events of default and available remedies for both parties
13. Termination: Conditions and procedures for early termination
14. Governing Law: Specification of Philippine law as governing law and jurisdiction
15. Execution: Signature blocks and execution requirements
1. Security Deposit: Terms of security deposit if required, including amount and conditions for return
2. Assignment and Subletting: Include if assignment or subletting rights are to be granted or prohibited
3. Equipment Upgrades: Include if equipment upgrades or modifications are anticipated during the lease term
4. Return Conditions: Include if there's a possibility of equipment return rather than purchase
5. Force Majeure: Include if specific force majeure provisions are needed beyond standard contract provisions
6. Warranties: Include if specific manufacturer warranties are being passed through to the lessee
7. Environmental Compliance: Include for equipment that may have environmental impacts or requirements
1. Schedule A - Equipment Specifications: Detailed technical specifications and condition report of the equipment
2. Schedule B - Payment Schedule: Detailed breakdown of payment amounts, dates, and allocation between lease and purchase components
3. Schedule C - Acceptance Certificate: Form for documenting equipment delivery and acceptance
4. Schedule D - Maintenance Requirements: Detailed maintenance schedule and requirements
5. Schedule E - Insurance Requirements: Specific insurance coverage requirements and terms
6. Appendix 1 - Purchase Option Calculations: Formula and examples for calculating final purchase price
7. Appendix 2 - Return Conditions Checklist: Detailed checklist for equipment condition if returned
Authors
Manufacturing
Construction
Agriculture
Transportation
Mining
Healthcare
Technology
Telecommunications
Food Processing
Retail
Logistics
Warehousing
Industrial Equipment
Office Equipment
Heavy Machinery
Legal
Finance
Procurement
Operations
Risk Management
Compliance
Asset Management
Treasury
Credit
Business Development
Facilities Management
Chief Financial Officer
Finance Director
Procurement Manager
Operations Manager
Fleet Manager
Equipment Manager
Legal Counsel
Contracts Manager
Risk Manager
Asset Manager
Facility Manager
Treasury Manager
Credit Manager
Business Development Manager
Compliance Officer
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