Factors that Must be Included in a Printer Lease Agreement

If you’re considering a printer for lease in Dubai, there are some things you should always make sure to include in your contract. Read on to find out what you should look for in a lease agreement, including service and maintenance, a performance guarantee, and tax implications. In addition, make sure the lease has a termination clause. These clauses should be carefully drafted to protect your company when the lease ends.

Service and maintenance should be included in a printer lease agreement:

When negotiating with a vendor, consider whether the vendor offers service and maintenance. While some situations call for a cost-per-copy model, most fit a standard model. Service and maintenance can be separated from the lease agreement or bundled into it. Consider whether to look for service inclusive lease or service level agreement clauses. The contract should specify the contracted volume. Usage periods can be monthly, yearly, or anywhere in between.

Performance guarantee:

A performance guarantee is a stipulation in a lease agreement that protects the customer against performance failure. This type of guarantee is similar to a guarantee given by a car dealership and ensures the device will perform according to a specified number of impressions over a specified period. The key to a performance guarantee is not a one-time thing but rather a recurring guarantee that you can always rely on.

Tax implications:

A lease agreement allows you to get high-tech printers into your business without the initial outlay. By paying in installments over the life of the lease agreement, you can avoid the cash crunch. Furthermore, a lease does not create a liability or hamper your future credit opportunities. Hence, it can be an excellent choice for small and start-up businesses. Tax implications of a printer lease agreement should be carefully considered before signing up for a lease.

Termination clause:

A termination clause in a printer lease agreement is an important part of the contract, as it provides a way for a lessee to end the agreement without the lessee’s consent. Typically, this clause applies to leases requiring 30 to 150 days’ notice before the end of the lease period for a lessee to either buy out or return the equipment. If a lessee misses this deadline, the lease will automatically renew for another year, which can last until formal notice of termination is provided.