Reading time: 2 minutes

Commonly, businesses will permit another to use its equipment or goods for a limited time. Businesses can loan or rent vehicles, machinery or even premises in return for money. If you are looking to use another business’ property or propose to rent out your valuable assets, it is prudent to have a comprehensively drawn up rental or lease agreement. This Agreement will set out not only the transaction’s financial aspects but, operational issues such as terms of use, transfer of liability and insurance.

What is the Relevant Law?

General Contract Law and fundamental principles of property ownership developed under the common law govern rental and lease agreements.

What is a Rental/ Lease Agreement?

A rental or lease agreement is a contract the owner of the goods or property (the lessor) enters into with another party who acquires the right to use those goods or property under strict terms (the lessee).

What Will it Cover?

A comprehensively drafted rental or lease agreement for equipment or property sets out:

  • The rights and terms of use,
  • The remuneration or rental paid to the renter in return for the right of use,
  • The liability for the property (particularly in the event of fault or misuse),
  • Disclaimers and indemnities and precisely how the lessor will provide the items and the lessee will return them.

A lawyer can also draft the agreement to cover the use of intellectual property, repair and transfer of leasing/renting rights in certain circumstances.

Conclusion

It is sensible to engage an experienced commercial lawyer in preparing your lease or rental agreement. She or he will take your instructions as to the exact items you will rent or lease, as well as the applicable terms and conditions.

Your property is undoubtedly a valuable asset for your business. If you allow a third party to use that property, it should be the subject of a carefully drafted agreement, drafted by an experienced commercial lawyer. LegalVision would be delighted to assist you with drafting or reviewing your rental or leasing Agreement. Questions? Please get in touch on 1300 544 755.

Webinars

Construction Contract Essentials

Thursday 12 August | 11:00 - 11:45am

Online
Understand how construction contracts are drafted and how to protect your construction business.
Register Now

Startup 101: Understanding Cap Tables and ESOPs

Thursday 19 August | 11:00 - 11:45am

Online
Cap tables and employee share option plans are essential for fast-growing startups. Learn more with this free webinar.
Register Now

Expanding to NZ: Structuring Your Business For Success

Thursday 26 August | 2:00 - 2:45pm

Online
Launching a business in New Zealand? Understand how to structure your business for success with this free webinar.
Register Now

Preventing Modern Slavery: Your Business’ Legal Obligations

Thursday 9 September | 11:00 - 11:45am

Online
Are you an Australian business with $100m+ annual consolidated revenue? Learn how to determine if you are a modern slavery reporting entity and your obligations under the legislation with this free webinar.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards 2021 Law Firm of the Year - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer