Equipment rental agreement

EQUIPMENT LEASE / COMMERCIAL LEASE AGREEMENT

This agreement (hereinafter the "Agreement") is entered into in [City where the contract is signed] on [Contract date] between the following parties:

1. PARTIES

1.1 Lessor:
[Lessor's name/company]
Registry code / personal identification code: [Lessor's registry code / personal ID code]
Address: [Lessor's address]
Contact: [Lessor's contact]
Bank account (IBAN): [Lessor's bank account (IBAN)]
Representative: [Lessor's representative]
(hereinafter the "Lessor")

1.2 Lessee: [Lessee's name/company], registry code / personal identification code [Lessee's registry code / personal ID code], address [Lessee's address], contact [Lessee's contact], representative [Lessee's representative] (hereinafter the "Lessee"). Lessee is a consumer (not acting in the course of business): [Is the Lessee a consumer (not acting in the course of business)?].

1.3 Type of agreement: [Type of agreement].

1.4 This Agreement is governed by the provisions on lease contracts in § 271 et seq. of the Law of Obligations Act — the Lessee obtains the right to use the Equipment for its own needs.

2. DESCRIPTION OF THE EQUIPMENT

2.1 Equipment: [Equipment make/model], serial number [Serial number], year of manufacture [Year of manufacture], category [Equipment category]. Condition upon delivery: [Condition upon delivery].

2.2 Together with the Equipment, the Lessor shall deliver its accessories and the documents necessary for its use, including the operating and safety instructions. The Lessor shall deliver the Equipment at the agreed time in a condition suitable for use in accordance with the Agreement (VÕS § 276 lg 1).

2.3 The Equipment remains the property of the Lessor. The Lessee shall not transfer, pledge or otherwise encumber the Equipment. If a third party asserts claims to the Equipment or the Equipment is seized, the Lessee shall notify the Lessor thereof without delay (VÕS § 282 lg 1).

3. PERMITTED USE

3.1 Permitted use: [Description of permitted use]. Subleasing the Equipment, modifying it, its use by untrained persons and its use outside the location specified in clause 3.2 are prohibited unless separately permitted in writing.

3.2 Location of the Equipment: [Location of the equipment]. Moving to another location: [May the equipment be moved to another location?].

3.3 The Lessee shall use the Equipment with care and in accordance with its intended purpose (VÕS § 276 lg 2) and shall comply with the manufacturer's operating and safety instructions and the requirements of legislation. The Equipment may be used only by a person who holds the relevant driving/operating licence, training and competence.

4. LEASE PERIOD

4.1 Type of lease period: [Type of lease period]. Start date: [Start date].

4.2 The lease period is for a fixed term, ending on [End date].

4.3 Automatic renewal: [Automatic renewal]. If the Lessee continues to use the Equipment after the expiry of the lease period, the Agreement is deemed to have been converted into an agreement for an unspecified term unless either Party expresses a different intention within two weeks (VÕS § 310 lg 1).

5. RENTAL FEE

5.1 Rental fee: [Rental fee (€)] euros; fee period: [Fee period]. Payment deadline: [Payment deadline]. VAT treatment: [VAT]. Security deposit: [Security deposit (€)] euros.

5.2 The hours of use of the Equipment are not limited unless otherwise agreed below. Operating hours per month included in the fee (0 = unlimited): [Operating hours per month included in the fee (0 = unlimited)]. For each hour exceeding the operating hours included in the fee, the Lessee shall pay [Excess hour rate (€/hour, if operating hours are limited)] euros.

5.3 The Lessee shall pay the rental fee to the Lessor's bank account [Lessor's bank account (IBAN)]. A payment is deemed made on the day on which the amount is received in the Lessor's bank account. In the event of delay in payment, the Lessor may claim late payment interest at the statutory rate (VÕS § 113 lg 1).

5.4 The Lessee is not required to pay the rental fee for the period during which the Lessee could not use the Equipment for its intended purpose due to a defect for which the Lessee is not liable and which the Lessee is not required to eliminate itself (VÕS § 296 lg 1).

5.5 The security deposit secures the Lessor's claims against the Lessee arising from the Agreement. The Lessor shall return the security deposit after the Equipment has been returned and inspected, deducting the Lessor's due claims against the Lessee; the Lessor shall provide a statement of any amount withheld.

6. DELIVERY AND RETURN

6.1 The Equipment shall be delivered with a delivery and acceptance report containing a description of its condition and photographs. The report shall also record the accessories delivered and, where applicable, the reading of the Equipment's hour meter and the fuel or charge level. The Equipment is presumed to have been delivered in the condition described in the report (VÕS § 334 lg 1).

6.2 Upon return, the Equipment must be in the same condition in which it was delivered, taking into account normal wear and tear, cleaned and together with all accessories. In the event of late return, a penalty of [Late return penalty (€/day)] euros per day shall apply.

6.3 The Equipment shall be returned at the place where it was delivered, unless the Parties have agreed otherwise (VÕS § 334 lg 6). If the Equipment is returned uncleaned, the Lessee shall compensate the reasonable costs of cleaning.

6.4 The penalty specified in clause 6.2 is a contractual penalty. In the part exceeding the contractual penalty, the Lessor may claim compensation for damage caused by the delay in return (VÕS § 161 lg 2, § 335). A court may reduce an unreasonably high contractual penalty (VÕS § 162).

6.5 Upon return, the Lessor shall inspect the Equipment and notify the Lessee without delay of defects for which the Lessee is liable; the Lessor shall give notice of a defect that cannot be discovered by an ordinary inspection without delay after discovering it (VÕS § 336).

7. MAINTENANCE AND REPAIR

7.1 Maintenance obligation: [Maintenance obligation]. Payment for consumables: [Consumables (fuel, oil, filters) paid by]. The Lessee undertakes to notify the Lessor of defects immediately.

7.2 The Lessor shall carry out the maintenance and repair of the Equipment at its own expense and shall eliminate any defect for which the Lessee is not liable within a reasonable time or replace the Equipment with equivalent equipment (VÕS § 279 lg 2).

7.3 In any event, the Lessee shall eliminate at its own expense defects which can be eliminated by minor cleaning or maintenance necessary for the ordinary preservation of the Equipment (VÕS § 280). The Lessee shall not carry out repairs or alterations to the Equipment which are not its obligation without the Lessor's consent.

8. INSURANCE

8.1 Insurance: [Insurance]. The insurance obligation is divided between the Parties as follows: [How is the insurance obligation divided?]. Party paying the deductible in the event of an insured event: [Party paying the deductible in the event of an insured event].

8.2 In the event of an insured event, the Lessee shall comply with the insurer's requirements and cooperate with the Lessor as necessary for claiming the insurance indemnity. Damage not compensated by insurance (except for the deductible, the payer of which is determined in clause 8.1) shall be compensated by the Lessee if the Lessee is liable for the damage under clause 9.1.

9. DAMAGE AND LOSS

9.1 The Lessee is liable for the destruction, loss and damage of the Equipment occurring while the Equipment is in the Lessee's possession, unless the Lessee proves that this occurred in circumstances which did not arise from the Lessee or from a person to whom the Lessee transferred the use of the Equipment in accordance with the Agreement. The Lessee is not liable for ordinary wear and tear of the Equipment (VÕS § 334 lg 2).

9.2 If the Lessee is liable for the destruction or loss of the Equipment, the Lessee shall compensate the reasonable costs necessary to acquire equivalent equipment, taking into account the decrease in the value of the Equipment; in the event of damage to the Equipment, the Lessee shall compensate the reasonable costs of repair and the decrease in value (VÕS § 132).

9.3 Damage must be notified to the Lessor immediately in writing together with photographs. In the event of theft, the Lessee shall also notify the police without delay. The Lessor has the right to inspect the Equipment during the lease period with reasonable advance notice.

10. TRAINING AND COMPETENCE

10.1 The use of the Equipment requires training/competence. Training provided by: [Training provided by].

11. LIABILITY

11.1 The Lessor is liable under the law for defects existing at the time of delivery of the Equipment and for any lack of conformity of the Equipment with the terms of the contract. The terms of the Agreement do not restrict the statutory rights of the Lessee as a consumer, derogation from which to the detriment of the consumer is void.

11.2 The Lessee is liable for damage caused to third parties through the use of the Equipment, unless the damage resulted from a defect of the Equipment for which the Lessor is liable.

12. PURCHASE OPTION

12.1 At the end of the lease period, the Lessee has an option to purchase the Equipment at a price of [Purchase price (€)] euros. The Lessee shall notify the Lessor of the exercise of the purchase option in a form which can be reproduced in writing before the end of the lease period, and ownership of the Equipment passes to the Lessee upon full payment of the purchase price.

13. TERMINATION OF THE AGREEMENT

13.1 The fixed-term Agreement terminates upon expiry of the term.

13.2 The Lessor has the right to cancel the Agreement extraordinarily if the Lessee is in delay in paying the rental fee or a significant part thereof on two consecutive payment dates, or if the rental fee owed exceeds two months' rental fee, having granted the Lessee, before cancellation, an additional time limit of at least 14 days in a form which can be reproduced in writing (VÕS § 316 lg 1 and 3); if the Lessee misuses the Equipment or makes alterations to it without permission and continues to do so despite a warning, or the breach is material or intentional (VÕS § 315 lg 1); or if, after the declaration of the Lessee's bankruptcy, the security demanded by the Lessor is not provided within a reasonable time (VÕS § 319). Upon termination of the Agreement, the Lessee undertakes to return the Equipment to the Lessor without delay.

13.3 If the Lessor leases out the Equipment in the course of its economic or professional activities, the Lessee as a consumer may cancel a fixed-term Agreement by giving 30 days' notice; the Lessor has no right to claim compensation for damage caused by such cancellation (VÕS § 322). Either Party may cancel the Agreement extraordinarily for any other good reason (VÕS § 313 lg 1).

14. FORCE MAJEURE

14.1 A Party shall not be liable for a breach of obligations arising from the Agreement if the breach is excusable due to force majeure — a circumstance which the Party could not influence and, based on the principle of reasonableness, the Party could not be expected to take into account at the time of entering into the Agreement or to avoid (VÕS § 103). A Party shall notify the other Party of a circumstance of force majeure without delay.

15. DISPUTE RESOLUTION

15.1 Disputes arising from this Agreement shall be resolved through negotiations. Failing agreement, the dispute shall be resolved as follows: [Dispute resolution]. The dispute resolution agreement does not restrict the right of the Lessee as a consumer to apply to a court or, if the Lessor acts in the course of economic or professional activities, to the Consumer Disputes Committee. The law of the Republic of Estonia applies.

16. FINAL PROVISIONS

16.1 Notices related to the Agreement which have legal consequences shall be given in writing or in a form which can be reproduced in writing (including by e-mail) at the contact details of the Parties specified in clause 1.

16.2 Amendments to the Agreement shall be made in writing or in a form which can be reproduced in writing. The Lessee may not transfer the rights and obligations arising from the Agreement to a third party without the Lessor's consent. If any provision of the Agreement is or becomes invalid, this shall not affect the validity of the remaining provisions. The Agreement enters into force once both Parties have signed it.

17. LEGAL BASIS

17.1 Making equipment available for use against payment is a lease contract within the meaning of the Law of Obligations Act (VÕS § 271), even if in everyday language it is called a rental; it is a commercial lease contract only if the Lessee has the right to obtain fruits from the Equipment in accordance with the rules of regular management (VÕS § 339). Depending on the type of agreement chosen, the Agreement is governed by §§ 271–338 (lease contract) or § 339 et seq. (commercial lease contract) of the Law of Obligations Act; the provisions on lease contracts apply additionally to a commercial lease contract (VÕS § 341).