Equipment Lease To Own Agreement Template for New Zealand

This Equipment Lease To Own Agreement is designed for use in New Zealand when a party wishes to acquire equipment through an initial lease arrangement with a subsequent purchase option. It is particularly suitable for businesses and individuals who prefer to spread equipment acquisition costs over time while maintaining the flexibility to purchase. The agreement complies with New Zealand's legal framework, including the Contract and Commercial Law Act 2017, Credit Contracts and Consumer Finance Act 2003, and Personal Property Securities Act 1999. It contains detailed provisions for equipment specification, payment terms, maintenance obligations, risk allocation, and the process for transferring ownership. The document can be customized for various equipment types and industries, incorporating appropriate consumer protection provisions when the lessee is an individual rather than a business.

1. Parties: Identifies and provides full details of the lessor and lessee, including registered addresses and company/business numbers

2. Background: Sets out the context of the agreement, including the lessor's ownership of the equipment and the lessee's desire to lease with an option to purchase

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Equipment Description: Brief description of the leased equipment (with detailed specifications in Schedule 1)

5. Term and Commencement: Specifies the duration of the lease and when it begins

6. Payments and Purchase Option: Details the lease payment structure, purchase option price, and conditions for exercising the purchase option

7. Delivery and Acceptance: Covers the delivery process, acceptance testing, and documentation requirements

8. Title and Risk: Establishes that title remains with lessor until purchase option is exercised, and addresses risk allocation

9. Use and Maintenance: Specifies permitted use, maintenance obligations, and condition requirements

10. Insurance: Details insurance requirements and responsibilities

11. Default and Termination: Defines events of default and termination rights

12. Return of Equipment: Procedures for returning equipment if purchase option isn't exercised

13. Transfer of Ownership: Process and requirements for transferring ownership when purchase option is exercised

14. General Provisions: Standard provisions including notices, governing law, dispute resolution, and assignment