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Equipment lease agreement template

Equipment lease agreement: An equipment lease lets a business use machinery, vehicles or technology owned by a lessor for a period in return for regular payments.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use an equipment lease agreement

  • Leasing machinery, vehicles or IT equipment
  • Rent-to-own arrangements
  • Short-term hire for projects

Equipment lease agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Equipment

    The Lessor leases the equipment in Schedule 1 to the Lessee for [36] months.

  2. Payments

    The Lessee will pay [amount] per month in advance.

  3. Use and location

    The Lessee will use the equipment only at [location] for its intended purpose.

  4. Maintenance and insurance

    The Lessee will maintain and insure the equipment for its replacement value.

  5. Ownership

    The equipment remains the Lessor’s property. The Lessee will not sell or charge it.

  6. End of term

    At the end of the term the Lessee will [return the equipment / may buy it for amount].

What to check before you sign

  • Is there a purchase option at the end?
  • Who bears loss or damage?
  • How does the lease affect your accounts under lease accounting rules?

How to send an equipment lease agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Equipment lease agreement template: frequently asked questions

Is an equipment lease better than buying?

Leasing spreads cost and can include maintenance; buying is often cheaper over the asset’s full life.

What happens if leased equipment is damaged?

Usually the lessee bears the risk and must insure it, so check the insurance clause.

Is an electronically signed equipment lease agreement legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get an equipment lease agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

Maintenance agreement templateMaintenance agreementLoan agreement templateLoan agreementCommercial lease agreement templateCommercial lease agreement

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.