The following five items must be clearly stated in the rental contract, or you could lose money.

The contract must clearly stipulate the equipment information, the payment of rent, and the responsibility for maintenance, otherwise disputes may arise or even compensation be required.The following is a detailed explanation of five essential clauses in a lease contract. Knowing these will help you avoid legal risks and protect your rights.

The information about the equipment must be specific to each component.

Don't just write "one device" and be finished! The model number, serial number and list of accessories all have to be clearly written in black ink on white paper.Once a friend rented a tractor and when he returned it he discovered that one of the hydraulic pipes was missing. In the end he had to pay over NT $ 8000 in damages because the contract didn't specify the details.

The degree of newness must be indicated.

The risks of a 90 % new machine and a used one are completely different. We suggest that you take pictures of the machine and attach them to the contract.Anyone who has ever rented a printer knows that it is sometimes hard to tell whether a scratch appeared before or after the rental period.

The payment of rent must be exact to the hour.

The worst case I've seen was when the contract said "by the day," but the renter kept the car from 8 AM to 11 PM, and was charged for two days.Nowadays, standard contracts will specify that "daily rent is calculated on a 24-hour cycle, with half price charged for any additional time up to four hours.

Conditions for returning the deposit.

Don't rely on oral promises. Make sure that the contract specifies the exact circumstances under which your deposit will be withheld. For example, the contract should say that if water gets into the machine, 20 % of the deposit will be withheld, and that if a part is lost, the cost of that part will be deducted from the deposit.I've seen people who rented photographic equipment lose their entire deposit because a CMOS chip had a gray spot.

It is necessary to clearly demarcate responsibility for repairs.

Who is responsible if the equipment breaks down? There are three types of contract: normal faults are the responsibility of the lessor, damage caused by improper use is the responsibility of the lessee, and natural disasters and other force majeure must be negotiated.Last year, the heavy rains caused a lot of damage, and many of the disputes that arose were because this wasn't written clearly.

Terms for providing a backup machine.

Will a backup be provided if maintenance takes more than three days? This is especially important.

The amount of damages should be specified.

Don't use such empty phrases as 'compensation based on actual loss.' Be specific about how much the penalty is per day for late return and how many times the original price will be charged for lost equipment.One courier company had a lease contract that didn't specify a penalty for breaking the lease, and as a result, the company was left owing three months 'rent. When it went to court, it had to prove its own losses.

Special exemption clauses.

What happens if the pandemic prevents you from returning? Adding a force majeure clause to the contract can save a lot of trouble, but you'll need to agree on the method and deadline for submitting supporting materials.

Hidden traps in the termination of contracts.

If you break the lease early, do you have to pay damages? Are you allowed to sublet the equipment? One teahouse that was closing down secretly sublet its leased ice machine, and when the original owner found out, he took them to court.These details must all be spelled out in the contract.

Standards for the acceptance of recycled equipment.

The most common source of problems is in the return and inspection of the car. It is important to clearly spell out the time frame in which the car must be returned (such as within three working days), how the inspection will be conducted (whether or not a third party will be involved), and how disputes will be resolved (such as by the inspection report from the rental company).