Scope and purpose This Checklist sets out the key considerations when drafting, reviewing or negotiating an equipment hire agreement. Equipment hire agreements may also be referred to as equipment leases, equipment rental, operating leases or finance leases. This Checklist uses the term equipment hire agreement for ease of reference. It is drafted from the perspective of the hiring customer under the lease. See also accompanying Precedents: Equipment hire agreement—pro-customer and Equipment hire agreement—pro-supplier. This Checklist seeks to present issues that are aimed to protect the hiring customer’s (or lessee) interests in relation to an equipment hire agreement which has been drawn up by the supplier (or lessor) (as is usually the case with equipment hire agreements). Terms such as ‘lessor’, ‘lessee’, ‘hirer’ and similar do seem to cause a lot of confusion within these types of arrangement. In this Checklist the ‘hiring customer’ or ‘lessee’ is the party who is taking the equipment on lease and the ‘supplier’ or ‘lessor’ is the party who supplies the equipment and in turn is paid a rental fee. This Checklist concerns

This Agreement is made on [date] Parties 1 [insert name of supplier] [of OR trading as [insert trading name] of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Supplier); and 2 [insert name of customer] [of OR trading as [insert trading name] of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Customer), (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Supplier conducts the business of hiring [insert description of Equipment] to other businesses. (B) The Customer conducts the business of [insert description]. (C) The parties have agreed that the Customer shall hire the Equipment from the Supplier on the terms set out in this Agreement. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Affiliate • means any entity that directly or indirectly Controls, is Controlled by, or is under common Control with, another entity; Authorised Persons • has the meaning given in clause 15.1; Business Day • means a day other than a Saturday, Sunday or public holiday[, on which clearing banks are open for non-automated

This Agreement is made on [date ] Parties 1 [insert name of supplier] [of OR trading as [insert trading name] of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Supplier); and 2 [insert name of customer] [of OR trading as [insert trading name] of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Customer), (each of the Supplier and the Customer being a party and together the Supplier and the Customer are the parties). Background (A) The Supplier conducts the business of hiring [insert description of Equipment] to other businesses. (B) The Customer conducts the business of [insert description]. (C) The parties have agreed that the Customer shall hire the Equipment from the Supplier on the terms set out in this Agreement. The parties agree: 1 Definitions and interpretation 1.1 In this Agreement: Affiliate • means any entity that directly or indirectly Controls, is Controlled by, or is under common Control with, another entity; Authorised Persons • has the meaning given in clause 17.1; Business Day • means a day other than a Saturday, Sunday or public holiday[, on which clearing banks are open for

The Investigatory Powers Act 2016 (IPA 2016) forms a central part of the legal framework governing the use of covert surveillance by public bodies. This framework previously had been largely, but not exclusively, contained in the Regulation of Investigatory Powers Act 2000 (RIPA 2000). The provisions that govern the powers to interfere with equipment and property are set out in IPA 2016, Pt 5. These are in addition to powers available to the intelligence agencies (GCHQ, MI5 and SIS) under sections 5 and 7 of the Intelligence Services Act 1994. IPA 2016, s 13 makes it obligatory for intelligence services to obtain an equipment interference warrant for the purpose of obtaining communications, private information or equipment data where it is considered that an offence under the Computer Misuse Act 1990 would otherwise be committed and there is a British Islands connection. The Home Office has published a Code of Practice on Equipment Interference which relates to the exercise of functions conferred by IPA 2016, Pt 5 and Pt 6, Ch 3 and

This Practice Note provides an overview of the contractual considerations which arise when leasing or hiring equipment, being a contract for the simple hire or bailment of goods, in a business to business transaction. This Practice Note does not consider hire purchase or consumer hire. Introduction Equipment leasing, or equipment hiring, is an expression applied to various agreements which involve a contract of simple hire or bailment of goods. There are many reasons why parties may consider leasing or hiring assets or equipment, including to provide temporary access to equipment or to provide an alternative form of financing equipment purchases. Typically, an equipment lease or hire transaction involves a lessor (also referred to as a supplier or owner) who owns the equipment and a lessee (also referred to as a hirer) who, in return for consideration (namely rentals or a hire fee), obtains use of the equipment pursuant to the agreed contractual terms. In lease or hire arrangements involving multiple, separate transactions, a master lease agreement is often used with the terms for each tranche of equipment

This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee) ascertains and values any interest they may have in property, what assets vest in them, how they release any interest and the equity of exoneration. For further reading on this, see Practice Notes: • Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it • Protecting a trustee in bankruptcy's interest in property following their appointment • The equity of exoneration and how it applies in practice • Possession and sale applications in respect of a bankrupt's family home What is equitable accounting? Equitable accounting is a process which allows an account of the sale proceeds of the property to take place separately to the terms of any express or constructive trust taking effect and applies as an alternative/addition to the constructive or express trust. Equitable accounting can be viewed as a

Assignments can occur in equity when any of the requirements of legal assignment are not satisfied.

In relation to receivables, an assignment which does not comply with s 136 of the Law of Property Act 1925, often because the assignment is not in writing or has not been disclosed to the debtor. The majority of receivables purchase agreements operate on the basis of equitable assignments.

A charge is a security interest by which property is made available for the payment of a debt or the performance of some other obligation.

This Practice Note considers the position of a security holder who has an equitable mortgage or charge over land and, in particular the powers that are available to complete a sale of the charged property. This Practice Note deals only with registered land. Mortgages and charges over land—a recap Security over land can be taken by way of mortgage or charge. Mortgage A mortgage can be legal or equitable. Legal mortgage of registered land A legal mortgage of registered land (whether freehold or leasehold) is made by: • a charge by deed expressed to be 'by way of legal mortgage' (commonly referred to as a 'legal charge') (section 85(1) of the Law of Property Act 1925 (LPA 1925) (freehold) or LPA 1925, s 86(1) (leasehold)) or • a charge at law of the registered estate to secure the payment of money (section 23(1)(b) of the Land Registration Act 2002 (LRA 2002)). This power was introduced by section 25(1) of the Land Registration Act 1925 (LRA 1925) and its equivalent provision is now in

Restructuring & Insolvency analysis: A director of a company in liquidation had been found to have committed breaches of fiduciary duty. The appellant was held liable for dishonest assistance. The company and its liquidator obtained an order for an account of profits against the director and equitable compensation against the dishonest assistant. The latter covered the loss caused to the company by the director’s failure to account for his profits. The appellant’s appeal against the judgment succeeded, as the account and the compensation were so closely connected that it was considered unjust for him to be liable for equitable compensation in addition to the account already ordered. Written by Nora Wannagat, barrister at 9 Stone Buildings.

Commercial analysis: The Court of Appeal has confirmed that an award of equitable compensation against a director, in respect of an unauthorised remuneration drawn from a company, is not confined to actual loss suffered by a company. It is, therefore, not open to the director to argue that the unauthorised remuneration was equal to or less than the market value of the services provided by the director in consideration for the unauthorised remuneration. Written by Phillip Patterson, barrister at Hardwicke Chambers.