Lease and Buy Agreement
How To Use
This review list is provided to inform you about this document in question and assist you in its preparation. This is a lease agreement intended to help a customer buy a large item. It is set up as an installment loan, with leasing provisions, and will work fine as long as the customer makes the payments. The simplicity of the agreement will make it easier for the Seller to entice the Buyer into buying. The agreement provides for repossession, late payments, collection costs, and the like.
- Make multiple copies. Each signatory should get one. Keep one in the related file.
Lease and Buy Agreement
___________________________, referred to as LEASING COMPANY and ________________________, referred to as CUSTOMER, agree:
CUSTOMER shall lease from LEASING COMPANY the following items: _____________________________________________________________________________
LEASING COMPANY shall purchase the items set forth above as CUSTOMER’S agent. LEASING COMPANY provides no warranty upon the goods, and the sole warranty shall be that offered, if any, by the MANUFACTURERS and sellers of the leased equipment. The equipment shall be located at: ______________________________________________________ and may not be moved without prior approval of LEASING COMPANY.
All expenses of delivery, set up and taxes of the leased goods shall be paid directly by CUSTOMER to the providers of such services.
CUSTOMER shall maintain insurance coverage, at its expense, upon the leased property with broad form coverage through an insurance carrier authorized to transact business in the State of ______________ acceptable to LEASING COMPANY, which approval shall not be unreasonably withheld.
CUSTOMER agrees to pay LEASING COMPANY the total sum of $_________ (_____________________________________________ & _____/100 dollars) in consideration of the lease of the equipment, to be paid in ____ installments due ___________________, with the first payment due on ___________________.
Upon the failure of CUSTOMER to pay any installment due, or to comply with the provisions of this lease agreement, the LEASING COMPANY may accelerate the payment of all remaining sums due. The CUSTOMER shall pay all taxes and levies upon the equipment.
Any payment late by 10 days will incur a late charge of 5% of the face amount of that payment as described above.
Upon default the LEASING COMPANY may take possession of the leased items, and may enter the premises of CUSTOMER to do so.
CUSTOMER shall have the option to purchase the leased equipment at the conclusion of the term of the lease, provided that all payments have been made, for the sum of $__________ (____________________________________________ & _____/100 dollars). Should CUSTOMER decline to exercise this option, CUSTOMER shall return the equipment, at its expense, to LEASING COMPANY.
The customer shall be responsible for all maintenance upon the leased items, and shall keep the equipment in good operating condition.
Upon default, CUSTOMER agrees to pay any and all costs of collection including attorney’s fees incurred by LEASING COMPANY. CUSTOMER shall not move the leased items without the prior approval of LEASING COMPANY.
CUSTOMER agrees to execute financing statements or other documents reasonably required by LEASING COMPANY.