FOOD TRUCK LEASING AGREEMENT

BETWEEN

____________________________________________________

(THE “LESSOR”)

AND

______________________________________________________

(THE “LESSEE”)

__________________________________________________________________________________

THIS AGREEMENT is made on the …………..day of……….20…….,by the Lessor and Lessee (collectively referred to as “Parties” or individually as “Party”) and includes that Party’s successors and assigns.

In consideration of covenants and agreements contained in this agreement, and other good and valuable consideration, the receipt of which is hereby acknowledged, Parties agree to the following terms and conditions and to be bound thereby:

  1. CONTRACT DURATION

The food truck, license plate number __________________________ (the “vehicle”) shall be leased from ____________________until___________________  subject to compliance by the Lessor with all State and Federal laws relating to the food truck business.

  • AMOUNT DUE AT LEASE SIGNING

Lessor and Lessee agree on the following amount due at lease signing, based on these terms:

  • Refundable security deposit $_____________
  • Down payment $_______________
  • Applicable title, licence and registration fees $_______________
  • GAP coverage $_________________

AMOUNT DUE AT LEASE SIGNING $ ________________

  • TRADE-IN ALLOWANCE, DISCOUNTS, AND REBATES

Lessor is offering the following amount in trade-in allowance, discounts, rebates, or incentives:

  • Net trade-in allowance $____________________
  • Discounts, rebates, or incentives $ _________________

TOTAL $ ___________________

  • LEASE COSTS AND FEES SUMMARY

The Lessor and Lessee agree that at the end of the term of this Lease the total cost of the Lease will be $___________________________, excluding any costs for repairing any excess wear and tear of the Vehicle. This total is based on the following provisions:

  • The full retail cost of the Vehicle is $ __________________________.
  • The Lessor and Lessee have negotiated and agree that the value of the Vehicle is

$ _________________.

  • A good faith estimate of the residual value of the Vehicle is $ _________________________.
  • The invoice price of the Vehicle minus net trade-in allowance, down payment, rebate, non-cash credit, or cash paid (net capitalized cost) is $ ___________________.
  • The amortized amount over the term of the Lease is $ _________________.
  • The term of the Lease is for _____________[Insert Number of Months] months (the “Term”).
  • The total base monthly depreciated payment is $ ___________________.
  • Lessor is charging a lease rate of ____________________%.
  • The financing fees total: $___________________.
  • The local sales tax on monthly payments is __________________% per annum.
  • The monthly sales/use tax total is $ ____________________.

TOTAL MONTHLY PAYMENT $ ______________________

TOTAL COST OF LEASE $ _______________________

  • LEASE PAYMENTS

The Lessee shall pay annual installments of $____________ payable in advance on _________of each year.

  • FORM OF PAYMENT

The leasing amount shall be paid through the following method;

____________________________________________________________

  • SECURITY DEPOSIT

The Lessee shall pay a security deposit of $ _______________at the time that this Lease is signed. This deposit will be returned to the Lessee at the termination of the Lease, subject to the option of the Lessor to apply it against Lease charges and damages. Any amounts refundable to the Lessee shall be paid at the time this Lease is terminated.

  • PENALTY
  • A late payment fee of $______________shall be charged for delayed payments.
  • The Lessor reserves the right to charge $_______________per day when the Lessee remains in possession of the vehicle past the lease term.
  • MILEAGE PERMITTED

Lessee will be permitted to drive the Vehicle for ______________________miles per year.

  1. ACCEPTABLE DRIVERS, LIMITATIONS, and MODIFICATIONS TO THE VEHICLE

The Vehicle is not to be operated by drivers without an appropriate license or those restricted under the insurance policy. Lessee agrees that it will not permit the Vehicle to be located in a State other than the State in which Vehicle is then titled for any continuous period of time that would require such Vehicle to become subject to the titling and/or registration laws of such other State. Any exceptions can only be made upon Lessor’s prior written consent. Any modifications or cosmetic additions to the Vehicle are not permitted without the Lessor’s prior written consent.

  1. LIABILITY OF THE PARTIES

The Lessee hereby indemnifies and holds harmless the Lessor and any party who may claim through the Lessor against any claims arising from this agreement unless otherwise expressed.

Lessee agrees to indemnify and hold harmless the Lessor from any loss; shall keep the Vehicle free from encumbrances, fines, liens, claims, and expenses resulting from the maintenance and use of the Vehicle.

  1. END OF TERM LIABILITY

The residual value of the Vehicle is based on a reasonable, good-faith estimate of the value of the Vehicle at the end of the lease term. If the actual value of the Vehicle at that time is greater than the residual value, Lessee will have no further liability under this Lease, except for other charges already incurred. If the actual value of the Vehicle is less than the residual value, Lessee will be liable for any difference up to three (3) times the monthly payment. For any difference in excess of that amount, Lessee will only be liable if:

  1. Excessive use or damage representing more than normal wear and use resulting in an unusually low value at the end of the term.
  2. The matter is not otherwise resolved, and Lessor wins a lawsuit against Lessee seeking a higher payment.
  3. Lessee voluntarily agrees with Lessor after the end of the lease term to make a higher payment.

Should the Lessor bring a lawsuit against the Lessee, the Lessor must prove that the original estimate of the value of the leased property at the end of the lease term was reasonable and was made in good faith. For example, Lessor might prove that the actual was less than the original estimated value, although the original estimate was reasonable, because of an unanticipated decline in value for that type of Vehicle. Lessor must also pay for attorney’s fees.

Suppose Lessee disagrees with the value assigned to the Vehicle. In that case, Lessee may obtain, at Lessee’s own expense, from an independent third-party agreeable to both parties, a professional appraisal of the value of the leased Vehicle, which could be realized at scale. The appraised value shall then be used as the actual value.

  1. INSURANCE

Lessee must maintain Automobile Liability Insurance in the form of any applicable bodily injury and property damage coverage, and collision and comprehensive insurance, as required by ____________________[Insert State] State law. Proof of insurance or the insurance card must be provided to the Lessor upon request. The Lessee is responsible for insuring the Vehicle based on its total value. The Lessor will be named the registered owner and “Additional Insured” and loss payee in the insurance policy.

  1. TAXES AND FEES

During the term of this Lease, the Lessee shall pay all applicable taxes, assessments, and license and registration fees on the Vehicle.

  1. COSTS, EXPENSES, FEES, and CHARGES

Lessee agrees to pay all fines, tickets, or penalties incurred in connection with the Vehicle’s operation during the term of this agreement.

  1. GAP LIABILITY NOTICE

In the event of theft or damage to the Vehicle that results in a total loss, there may be a gap between the amount due upon early termination and the proceeds of your insurance settlement and deductible. THIS LEASE PROVIDES THAT THE LESSEE IS LIABLE FOR THE GAP AMOUNT.

  1. RISK OF LOSS

Lessee assumes and agrees to bear the entire risk of loss of, theft of, damage to, or destruction of the Vehicle from any cause whatsoever. In the event of such occurrence to a vehicle, Lessee shall give Lessor prompt notice of the occurrence and thereafter will place the Vehicle in good repair, condition, and working order.

  1. MAINTENANCE

Lessee agrees, at its expense, to maintain the Vehicle in good condition, repair maintenance, and running order, and per all manufacturers and warranty requirements. Lessee shall be responsible for all expenses that shall result as a part of the normal wear and tear of the automobile. Lessee also agrees to comply with the Lessor’s requirements of maintenance of the Vehicle.

  1. WARRANTIES

The Vehicle herein is in an “as is” condition, and Lessor has not made and does not hereby make any representation, warranty, or covenant expressed or implied concerning the condition, quality, durability, capability, or suitability of the Vehicle or against any patent or latent defects therein.

  • NON-ASSIGNMENT

The Lessee shall not transfer or assign this agreement without the Lessor’s consent. However, the Lessor may transfer or assign this agreement or subcontract its obligations hereunder at any time without the Lessee’s consent.

  • PURCHASE OPTION AT THE END OF LEASE TERM

This agreement does not include an option to purchase the leased Vehicle.

  • INSPECTION

Lessor and Lessee acknowledge that the Vehicle has been inspected, and the Lessee accepts the Vehicle as being in good condition, not including manufacturer’s defects.

  • RETURN OF THE VEHICLE

Upon the expiration or termination of this agreement, the Lessee will return the Vehicle in the same condition it was in at the beginning of the term. Ordinary wear and tear are accepted. Lessee shall pay any applicable end-of-lease costs.

  • INTELLECTUAL PROPERTY

Any intellectual property and associated rights owned or developed by the Lessor, solely or jointly with others, during the subsistence of this agreement are the Lessor’s exclusive property. At the Lessor’s discretion, the Lessee will enjoy a non-exclusive, limited use license of the Lessor’s intellectual property.

  • DISPUTE RESOLUTION

Mediation shall resolve any dispute under this agreement. Parties shall act in good faith to resolve the dispute. Nothing in this section shall be construed as limiting the Court’s jurisdiction.

  • TERMINATION

If Lessee fails to comply with any of the covenants contained in this Agreement, Lessor may terminate this agreement upon ____________days written notice and exercise any remedies under applicable law.

  • EARLY TERMINATION
  • There is no cancellation period before the end of the term of this vehicle lease. This Lease may only be terminated with the agreement of the Lessor or upon proven and valid legal cause. 
  • Lessee may have to pay a substantial charge if this Lease is ended early. The amount may be up to several thousand dollars. The actual charge will depend on when the Lease is terminated. The earlier the Lease is ended, the greater this charge is likely to be.
  • The termination of this agreement shall not discharge the liabilities accumulated by either Party.
  • Any Clauses intended by the Parties or this agreement to survive the termination of this agreement shall survive the termination of this agreement by whatever cause.
  • FORCE MAJEURE

For this agreement, “Force Majeure” means an event which a diligent Party could not have reasonably avoided in the circumstances, which is beyond the control of a Party and includes, but is not limited to, war, riots, civil disorder, earthquake, storm, flood or adverse weather conditions, strikes, lockouts or other industrial action, terrorist acts, confiscation or any other action by government agencies.

A Party’s failure to fulfill its obligations due to Force Majeure shall not be considered as a breach of this agreement, provided that the Party has taken all reasonable precautions, due care, reasonable alternative measures, and minimal delay all to carry out the terms of this agreement.

  • CONFIDENTIALITY

The Parties shall not disclose, directly or indirectly to any other person, any information concerning this agreement, whether such information is stated to be confidential or not, without the other Party’s written permission.

  • GENERAL PROVISIONS
  • The provisions of this agreement are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.
  • This agreement constitutes the entire agreement between the Parties. It supersedes all prior oral or written agreements or understandings between the Parties concerning the subject matter of this agreement. If any ambiguity is found in the agreement or various documents forming this agreement, the Lessor shall issue any necessary clarification or instruction. The Parties will exercise utmost good faith in this agreement.
  • Parties may alter this agreement subject to a written document signed by all Parties.
  • Except where otherwise provided, failure by either Party to enforce any of these terms or conditions shall not be a waiver of their right to enforce them.
  • This agreement may be executed in counterparts, each of which shall be an original, all of which shall constitute the same instrument.
  • All documents annexed to this agreement shall be subject to the terms under this agreement, provided that the Parties append their signatures on the documents.
  • The article and section headings in this agreement are for convenience; they form in no part of this agreement and shall not affect its interpretation.
  • Any reference to the singular includes the plural and vice versa and the male gender includes the female gender and vice versa.
  • Parties shall be served through the following addresses; either Party may change their addressees by reasonable written notice given to the other Party.

LESSOR: ___________________________________________

     ___________________________________________

LESSEE: ___________________________________________

                ___________________________________________

  • This agreement shall be construed and enforced in accordance with the laws of the State of _________________________.

IN WITNESS WHEREOF, the Parties have executed this agreement, as set below.

Signed by the LESSOR Signature:  Name:  Date:…………………………………………….…… Signed by the LESSEE Signature:  Name:  Date:…………………………………………….……

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