Equipment Lease Lawyer in Arizona
An equipment lease can be particularly appealing to small businesses because it doesn’t involve as much out-of-pocket cash as an equipment purchase or financing. Leasing is a way to spread out the cost of the equipment over a longer period of time without taking out huge loans.
Just like any lease, it is a contract agreement between the parties that govern how the relationship with go. If you have a written equipment lease (and you should), it will likely spell out such key terms as:
- Rent Amount
- Frequency of Payments
- Term of Lease
- Maintenance Obligations
- Wear & Tear
- Injury Liability
- And other essential terms
What Happens When There is a Breach of the Equipment Lease?
During difficult economic times and with the slowdown in construction and other equipment-intensive operations, equipment leases may not always go as planned. If you have leased equipment that you can no longer afford, there are options.
If the equipment lease is breached by non-payment, the lessor may have a variety of remedies. The lease may be secured with a UCC (Uniform Commercial Code) instrument. And the lessor may have the right to repossess the equipment. Further, the lessor may be able to sue you for the balance of the rent owed.
But you may also have defenses to such action. For example, in most cases the lessor will have an obligation to mitigate its damages. This means that the lessor may be obligated to re-rent the equipment to someone else for the balance of the lease term. And the lessor may not charge an inflated price, just to run up the damages claim against you.
Likewise, our firm will explore whether the lessor breached the lease in any way. Just because you are struggling with equipment lease payments doesn’t mean you don’t have defenses to the debt. We help clients negotiate reductions in equipment lease debt and settle it without bankruptcy.
If you have an equipment lease that you are struggling with, call for a free consultation with a business debt attorney.