Equipment Borrowing Agreement Sample

As an equipment borrower, obtaining a well-drafted equipment borrowing agreement is crucial. Such an agreement will ensure that all the parties involved in the borrowing process fully understand their rights and obligations. In this article, we will provide a sample equipment borrowing agreement and discuss the essential elements that should be included in it.

Equipment Borrowing Agreement Sample

This Equipment Borrowing Agreement (“Agreement”) is made and entered into as of [date] by and between [borrower name], with a mailing address of [borrower address] (“Borrower”) and [lender name], with a mailing address of [lender address] (“Lender”) (collectively referred to herein as the “Parties”).

Equipment

Lender hereby agrees to lend Borrower the following equipment (the “Equipment”):

[Description of equipment]

Term

The term of this Agreement shall commence on [start date] and shall terminate on [end date]. However, the Parties may agree to extend the term of this Agreement in writing.

Obligations of the Lender

Lender represents and warrants that it has the legal right to lend the Equipment to Borrower. Lender shall provide Borrower with the Equipment in good working order and condition.

Obligations of the Borrower

Borrower shall use the Equipment solely for the purpose of [purpose of Equipment]. Borrower shall maintain the Equipment in good working order and condition and shall be responsible for any repair or replacement costs.

Insurance

Borrower shall maintain, at its own expense, commercial general liability insurance, in an amount not less than [minimum amount] per occurrence, to cover any loss or damage to the Equipment or any loss resulting from Borrower`s use of the Equipment.

Indemnification

Borrower shall indemnify and hold Lender harmless from and against any and all claims, damages, and expenses resulting from Borrower`s use of the Equipment.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [state], without regard to its conflicts of law provisions.

Entire Agreement

This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, understandings, and agreements between the Parties.

Amendments

This Agreement may only be amended in writing signed by both Parties.

Execution

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Conclusion

An equipment borrowing agreement is a crucial document for both the lender and the borrower. It ensures that both parties understand their rights and obligations and can mitigate any potential disputes that may arise in the future. The sample agreement provided above includes the essential elements that should be present in such an agreement. Before borrowing equipment, it is vital to ensure that you have a clear and well-drafted equipment borrowing agreement in place.