What is an Equipment Rental Agreement?

An equipment rental agreement is generally a written contract between at least two parties. The contract is established to grant permission to one party to rent a type of equipment belonging to the other for a period of time. The duration of the agreement is usually defined by the owner, although the renter can make a request for the amount of time he or she wishes to have the equipment in his or her possession. Most rental agreements usually last for a period up to 30 days at a time.

There are many reasons for which a person may need to sign an equipment rental agreement. Sometimes, medical equipment such as oxygen tanks may need to be rented for at-home usage. For a day of leisure at sea, a person may sign a boat rental agreement. Electronics are some of the most rented types of equipment. Many businesses earn a great deal of their profit from renting various types of electronic equipment such as televisions, video game systems, video games and musical instruments.

Anyone loaning out equipment for a short period of time may draw up an equipment rental agreement. The written agreement may be established to protect the borrowed possessions while they are in the care of the renter. A rental agreement between two people familiar with each other on a personal basis may have more lenient terms. If the agreement is made between an individual and a place of business, it will generally be more structured and filled with varying forms of legal terminology. In either case, for the agreement to be legally binding, it should be written and signed by each party.

The equipment rental agreement should be very coherent. It should clearly state between which parties the agreement exists, the type of equipment being rented and the duration of time the agreement covers. Additionally, it will be important to include any applicable rental fees. The address from which the equipment was taken from as well as the address it is being rented to should be listed as well. This information can be important should the situation arise where the owner needs to go and pick up his or her belongings from the renter.

In many cases, a renter may have his or her agreement examined by an attorney. The attorney can provide a professional opinion and proofread the contract to make sure any legal terms are used correctly. When making an equipment rental agreement, one should be certain to define what he or she expects from the renter while possessing his or her equipment. Before signing the agreement, the renter should be certain that he or she fully understands all conditions of the document. In the event that something goes wrong, this contract can make each party legally responsible for the terms he or she has agreed to, therefore reading with understanding is essential when signing a legally binding document.