When leasing IT equipment, the lessor (the company providing the equipment) has one main obligation. However, most leases overlook this critical aspect completely, exposing the lessee (the organization leasing the equipment) to unnecessary risk.
Although it sounds simple, a lessor’s primary function under a lease agreement is to pay for the equipment. “Isn’t that implied or understood?” you might ask. The short answer is “yes,” but the longer answer involves a “but.” Yes, it may be implied or understood, but it often costs a lot of money to establish what was implied or understood between the parties when it is missing from an agreement, and even then, the implication or understanding may not be enforceable.
Your next question might be, “What’s the potential harm if that obligation is missing?” To illustrate, consider an extreme example of what happened to one lessee*:
*The concepts remain the same, but the facts have been changed to simplify the example and preserve confidentiality.
Outrageous? You bet. Could it have been easily prevented? Absolutely!
Here are three concepts to add to your IT equipment lease to prevent a similar or related situation from happening to you:
With a little prevention and a couple of additional paragraphs in the lease, you can improve your position and mitigate this risk.
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