Legal essence of rent and leasing
Under a lease agreement (regulated by Chapter 34 of the Civil Code of the Russian Federation), only individually defined things are allowed to be transferred, since it is the things transferred to the tenant that must then be returned to the lessor. The agreement on the provision of generic items is provided for in Art. 822 of the Civil Code of the Russian Federation and is called “commodity credit”. Russian law allows the inclusion of conditions for the purchase of property in the lease agreement, after which it becomes the property of the tenant.
In the field of equipment rental, a leasing agreement is in demand, which is covered in paragraph 6 of the above-mentioned chapter of the Civil Code of the Russian Federation and the specialized federal law “On financial lease (leasing)” dated October 29, 1998 No. 164-FZ (as amended on December 31, 2014).
The peculiarity due to which the leasing agreement is highlighted by the legislator within the lease agreement is that the lessor initially does not own the property that he will provide to the tenant. This property is purchased at the direction of the lessee from the seller named by him. Thus, in terms of its economic effect, leasing is close to a loan.
Equipment lease is the lease of movable property, which is usually intended for the production of any product, provision of services or conduct of specific activities (for example, commercial equipment). At the same time, the ownership or lease of certain equipment may be a mandatory condition, without which work cannot be carried out. As a result, such an agreement is most often concluded between business structures.
Disputes between legal entities regarding the rental of production equipment
Analysis of judicial practice allows us to prevent the occurrence of typical problems arising from insufficiently thorough and thoughtful text of the lease agreement.
Among them:
- inconsistency of the subject of the contract;
- rent inconsistency.
An illustrative example in this area is the ruling of the Supreme Court of the Russian Federation dated March 6, 2015 in case No. 307-ES15-238, A56-75480/2012. Using the excessive complexity of the terms of the contract, the plaintiff tried to prove their inconsistency (for example, the absence of identifying features of individual items in the list of transferred equipment). However, according to the court, the actual transfer of the subject of the lease agreement confirmed the consistency of the terms and the fact that the agreement was concluded.
For an equipment rental agreement, formal compliance with the written form is less important than the actual agreement of the parties on the subject of the agreement and the actions they took to transfer the equipment.
Let us give another example from judicial practice - the resolution of the Arbitration Court of the North-Western District dated April 10, 2015 No. F07-9821/2013 in case No. A21-1901/2013. Here, the bankruptcy trustee tried to have the equipment lease agreement invalidated due to the fact that the rent seemed to him too high. However, the court refused to satisfy the stated claim, relying on the fact that the amount of rent is freely established by the parties and is in no way limited by law.
When setting rent, the parties should focus on the existing economic situation, and not strive to meet any standards.
Equipment rental agreement with acceptance certificate
When concluding an equipment rental agreement, you should follow a number of recommendations:
- It is important to determine the subject of the contract and at the same time accurately name the equipment. It is advisable to indicate any identifying features to ensure the return of this particular item and not something similar to it. This is necessary in order to prevent the emergence of disputes at the moment when the fulfillment of obligations under the contract is completed.
- It is necessary to carefully plan the work and indicate in the contract a rental period that will be observed by the parties. If the period is too long, the lessor will receive payment at the time the equipment is no longer in use. This is disadvantageous for the tenant and can lead to legal disputes. At the same time, if the lease period turns out to be insufficient, the contract can be extended, and the tenant has a priority right to do so, but the lessor may require new rental conditions to be established.
- The actual transfer of equipment to the lessee must be documented in a transfer and acceptance certificate, which will become the most important evidence of the validity of the contract in the event of a dispute.
Supplementing the contract with an acceptance certificate and indicating in the text of the contract that this act is an integral part of it, an appendix to it, is one of the most important features of concluding an equipment rental transaction.
Thus, in the equipment rental agreement, it is necessary to pay special attention to the exact description of the individually defined equipment being transferred and the agreement on the price, as well as the rental period adequate to the relationship of the parties. A mandatory attachment to such an agreement is an acceptance certificate confirming the actual nature of the relationship between the parties.
Lease of property, despite the term of the contract, the amount of income received from such operations, requires careful documentation and correct reflection in the accounting accounts. In this article, we will consider how equipment rental accounting is carried out for each of the parties to the agreement.
How to register rental transactions?
All operations related to the receipt of income or expenses from renting property must have documentary confirmation from both the tenant and the lessor. Property rental transactions require the mandatory execution of the following documents:
- lease agreements;
- invoices for the amount of rent.
The actual date of transfer of equipment is confirmed by the acceptance certificate. This document can be signed at the same time as the lease agreement. If, during the transfer of equipment, one of the parties for any reason refuses to sign the document, then the lease agreement will be terminated, since the actual fact of transfer of property has not been established.
This document should indicate the name of the transferred object and its characteristics. Before signing the transfer and acceptance certificate, the landlord cannot demand payment of rent. The absence of such a document does not allow the tenant to include rental costs in the list of expenses to determine the financial result.
Since the lessor is a VAT payer, the obligation to draw up invoices for the amount of rent remains. The absence of such a document is a violation of accounting rules, entailing penalties. If an invoice is not issued, then the tenant has no grounds for deducting the amount of VAT on the rent or for attributing this amount to production costs (see →).
When renting is part of ordinary activities
When renting is a normal activity of a legal entity, account 90 is used to account for such transactions. During the month, the lessor collects all costs associated with the provision of equipment for rent in accounts 20, 23, 26, 44. At the end of the month, such costs are written off to score 90.
Such expenses may include rent charged by the lessor on the fixed assets handed over, costs of repairing equipment carried out at his expense.
To account for income from the provision of property for rent, account 90 is also used in correspondence with account 76. At the end of the month, by comparing the debit and credit of account 90, the financial result from rental transactions is determined.
| Account correspondence | Contents of operation | |
| Dt | CT | |
| 20,23,26,44 | 10, 70, 69, 02 | |
| 90 | 20,23.26,44, 68 | |
| 76 | 90 | |
| 99 | 90 | |
| 90 | 99 | |
When the lease is not part of the ordinary course of business
When the provision of equipment for rent does not relate to the permanent activities of the organization, then to account for such operations it is necessary to use account 91, not 90. Costs associated with rent are shown as a debit to the account, and income - as a credit. It is important to remember that the provision of fixed assets for rent requires mandatory VAT calculation and payment.
| Account correspondence | Contents of operation | |
| Dt | CT | |
| 20,23,26,44 | 10, 70, 69, 02 | Expenses for equipment repairs, depreciation of leased property |
| 91 | 20,23.26,44, 68 | Write-off of expenses for leased equipment at the end of the month, VAT |
| 76 | 91 | Income from rental property |
| 51 | 76 | Received funds to pay for property rental |
| 99 | 91 | Received a loss from the provision of equipment for rent |
| 91 | 99 | Profit received from providing equipment for rent |
Reflection of equipment rental from the tenant
The rented equipment is shown by the tenant in the balance on account 001 in the amount fixed in the lease agreement. For such fixed assets, the tenant does not accrue depreciation.
The rent paid by the lessee for the use of equipment is included in his expenses and, like the owner, includes VAT. After the end of the contract, the equipment returned to the owner will be written off from off-balance sheet account 001.
| Account correspondence | Contents of operation | |
| Dt | CT | |
| 001 | Rented equipment accepted for accounting | |
| 20,44 | 76 | Rental fees charged for the use of equipment |
| 76 | 51 | Transferred for equipment rental to the owner |
| 19 | 76 | VAT allocated |
| 68 | 19 | VAT on rent is deductible |
| 001 | Rented equipment was deregistered and returned to the owner | |
Equipment repair costs
- Dt 20, 44 Kt 10, 70, 69, 76 – expenses associated with the repair of leased equipment are reflected;
- Dt 19 Kt 76 – for the amount of VAT on the cost of repairs that were carried out by contract;
- Dt 68 Kt 19 – VAT deductible.
If repairs under the contract must be paid for by the lessor, then their cost can be taken into account against future rent.
The tenant who has completed the repairs reflects expenses on accounts 20 or 44, and then writes them off to account 76: Dt 76 Kt 20, 44
When rent is received in advance
If the payment is received from the lessor
There is often a situation where the rent is paid in advance by the tenant. In this case, the property owner must take it into account as deferred income and use account 98 for this.
For example, an enterprise signed an agreement to lease its equipment for a period of 12 months, according to which the rent is 72,000 rubles for the entire period (including VAT 12,000 rubles). The tenant transferred the entire amount one-time to the owner’s bank account when transferring the equipment for rent.
The lessor must make the following entries in accounting:
- Dt 51 Kt 76 = 72000 – received to the current account for rent;
- Dt 76 Kt 68 = 12000 – VAT is charged, payable on the rent transferred in advance;
- Dt 76 Kt 98 = 60000 – reflects the amount of rental income received in advance;
- Dt 98 Kt 90 = 5000 – for the amount of revenue from the provision of equipment for rent. Postings are performed monthly throughout the lease term;
- Dt 68 Kt 76 = 1000 – for the amount of restored VAT. Posting is carried out monthly.
If payment is received from the tenant
When paying rent in advance, the amount of such expenses for the tenant should be shown on account 97. Let's consider this using the previous example:
- Dt 76 Kt 51 = 72000 – paid for equipment rental in advance;
- Dt 97 Kt 76 = 60000 – rent paid in advance is shown as part of deferred expenses;
- Dt 19 Kt 76 = 12000 – VAT allocated;
- Dt 20 Kt 97 = 5000 – part of the rental payment is included in the costs of the current month;
- Dt 68 Kt 19 = 1000 – VAT related to the monthly rent.
Subsequent purchase of leased property
When purchasing a leased property, the owner must first transfer the purchase price of the property:
Dt 76 Kt 51.
After that, the object is accepted for balance. All expenses associated with the receipt of such property must be reflected in account 08. The amount transferred to the lessor when purchasing the property must be listed as the debit of account 08:
Dt 08 Kt 76.
The rent that was transferred to the owner before the purchase of the equipment is also taken into account in account 08 and is depreciation:
Dt 08 Kt 02.
After all costs for the purchase of leased equipment are collected on account 08, upon commissioning they are written off to account 01:
Dt 01 Kt 08.
Answers to questions about equipment rental accounting
Question No. 1. The lease agreement does not indicate the cost of the equipment being leased. How can a lessee evaluate an object, and at what cost should it be reflected on the balance sheet?
In such a situation, you can choose one of three options:
- You can evaluate the property yourself. The assessment is based on the amount of material damage that the owner will have to compensate if the equipment is damaged by the tenant. This cost must be reflected on account 001 and in the explanatory note to the statements.
- You can show the amount of rental payment for the entire term of the contract as the cost of equipment.
- It is possible to estimate the value of property leased at the minimum conditional value.
Question No. 2. Who takes inventory of leased equipment?
Since it is possible to count equipment only at the location of its actual location, this means that inventory must be carried out by the tenant. In this case, it is necessary to make sure that the primary documents for the leased property are available and complete. These may be copies of inventory cards received from the property owner.
The results of the audit of leased equipment are recorded in a separate inventory, compiled for each lessor in triplicate. Two copies of the document remain at the enterprise, and the third is provided to the lessor. In this way, the owner is notified of the availability and condition of the leased property from the tenant.
Question No. 3. How to properly register the rental of equipment in an LLC under a simplified taxation system?
Regardless of what taxation system the tenant uses, the main document defining the relationship between the parties to this process is the lease agreement. Therefore, having a well-drafted lease agreement is mandatory. This document should specify the object of the agreement, its validity period, the amount and timing of the transfer of rent.
When transferring equipment, you must leave an acceptance certificate.
The lessee records the leased objects on the balance sheet in account 001. Expenses that were incurred by the lessee to maintain the equipment in a condition suitable for operation are included in expenses for ordinary activities. Rent expenses reduce the tax base when calculating the simplified tax.
Various situations arise in entrepreneurial activity. Sometimes someone needs equipment, but there is no free money to buy it, so it is more profitable to enter into either a lease agreement or a lease agreement with an option to buy. It happens the other way around, when there is equipment, but for some reason it is not used in their activities, but in order for it to generate income, the owners rent out such equipment. This article will tell you what nuances the parties need to pay attention to when concluding an equipment rental agreement in order to avoid negative consequences and financial losses in the event of litigation.
When describing the object of an equipment rental agreement, you must remember that If in the contract the parties have not agreed on data that makes it possible to definitely establish the property that is transferred to the tenant, then in accordance with clause 3 of Art. 607 of the Civil Code of the Russian Federation, the condition about the object is considered inconsistent, and the contract is not concluded. Regarding the equipment rental agreement, the lessee needs to know that judicial practice proceeds from the fact that if the rental agreement does not indicate the serial number of the leased equipment, then the leased item is considered inconsistent and the agreement is not concluded. In this case, the lessor cannot collect from the tenant a fee for the use of the transferred property, as well as a penalty for late payment, if the tenant denies the actual use of the equipment. Therefore, it is best to make a list of equipment to be leased as an integral appendix when drawing up a contract. The list itself clearly reflects all the individual characteristics of each unit, and not just the name and quantity.
If the equipment is provided for use for certain purposes and this is agreed upon by the parties to the contract, then the lessor is obliged to provide it in a condition suitable for such use (clause 1 of Article 611 of the Civil Code of the Russian Federation). In order for the lessor to avoid claims from the lessee, and the lessee to avoid the risk of receiving faulty equipment for rent, it is best to inspect it when transferring the equipment, check its serviceability, and draw up an acceptance certificate in which the technical condition of the equipment is described in detail. The parties to this act will also be able to agree on the identified deficiencies of the equipment, the period for their elimination and which of the parties will eliminate them. Moreover, this procedure is more important for the lessee, since if he signs the equipment acceptance certificate without any claims, then he does not have the right to make claims to the lessor regarding the condition of the leased property and demand losses from him. At the same time, when signing the acceptance certificate, the tenant has the right to demand all the technical documentation necessary for using the equipment, since the provision of such documentation is the direct responsibility of the lessor.
In addition, it is very important for the tenant to request documents confirming the landlord’s right to rent out the equipment. The right to lease property belongs to its owner (Article 608 of the Civil Code of the Russian Federation), but the lessor can transfer this right. But the fact of transfer of the right to lease equipment must be properly formalized. So, for example, if equipment is subleased, then the main lease agreement should contain a provision that the lessee has the right to sublease the equipment.
Another issue that must be carefully agreed upon when concluding an equipment rental agreement is the issue of major repairs of the leased equipment. Unless otherwise specified in the lease agreement, then by virtue of clause 1 of Art. 616 of the Civil Code of the Russian Federation, the responsibility for carrying out major repairs lies with the lessor. If the lessor has agreed with the tenant that the responsibility for major repairs of equipment is assumed by the tenant, then the clause of the agreement on the tenant’s obligation to carry out major repairs should also indicate that the tenant carries out major repairs at his own expense. Otherwise, the tenant will be able to demand from the landlord the costs of major repairs.
Today, due to active repair and construction work, rental of the necessary tools is becoming popular again in Russia. For many citizens this may turn out to be quite convenient.
Not everyone will buy expensive tools in order to make repairs in one apartment. It is much cheaper to rent them, paying for use daily.
In addition to professional and household tools, you can rent gas-powered equipment, vibrating devices, and parquet sanding machines. Overall, renting construction equipment can generate considerable income. We will consider the organization of this type of activity in more detail below.
Business plan: tool rental
When organizing any business, everything should be carefully thought out and calculated. This case is no exception. To implement an idea, you need to properly draw up a business plan. Renting a tool is not as simple as it might seem.
The documents should describe all the main aspects of this field of activity. It is also necessary to analyze the main problems that may arise when opening this business and determine the main ways to solve them. This will be discussed further below.
Selecting a room
This requires an individual approach. The room in which your tool rental shop will be located can be about 20 square meters in area, and in any residential area of the city. The ideal would be a small corner in an existing store so that access by car is convenient.
Not every client can carry 20-25 kilograms of rented equipment. If the store is located on a busy side of the street or highway, you need to design the office window well so that it attracts the attention of consumers from afar.
Recruitment
In this case, you will need the following specialists:
- Repairer of units and tools.
- Equipment receiver. He may also be responsible for concluding contracts and maintaining financial records.
- Accountant.
- Lawyer (if the instrument is not returned for a long time).
Advertising
This is an integral part of business development, which is reflected in the business plan. Tool rental should begin with active advertising of the company. You can publish an ad in local newspapers or hand out flyers.
Hours of operation
Based on the experience of other entrepreneurs, the optimal working hours will be from 09.00 to 19.00 without a break. Day off is Sunday.
Deciding what can be rented
The list of the main most popular tools includes the following:
- Rotational devices – jackhammer, drill, impact wrench, etc.
- Grinding and cutting tools - saws, grinders, etc.
- Welding equipment and fixtures.
- Assembly and compressor devices.
- Construction tools - concrete mixer, heat gun, etc.
It should be remembered that rental will be in demand if you offer a large assortment of goods, preferably about 30 items. Also, renting construction equipment significantly diversifies the list of services. It must be of a professional type in order to be in demand among serious construction teams. It is better to take care of this long before opening a rental office. You need to decide where the equipment and tools will be purchased. Buy them from places that will provide warranty documents and a discount for buying in bulk.
Potential consumers
Typically, clients fall into three main categories:
- Builders who do private renovations. The rental of tools is included in the estimated cost of the work. This category of clients is subject to mandatory training on safety precautions and the use of electrical equipment, because not all builders in practice turn out to be professionals; they can easily break the rented goods.
- Private individuals. This is the most problematic and common category of tenants. They should be given a lot of attention, and they should also be given detailed instructions on all issues and a detailed study of the client’s personality.
- Legal entities, organizations. This category of clients usually has their power tools break down. It’s easy for a manager to work with such clients. Detailed instructions are not required; work experience is available.
We take into account the presence of risk factors
Be sure to include this point in your business plan. Tool rental involves the following main risk factors:
- It often happens that the renters of tools or equipment may be people who have absolutely no experience working with them. This means that there is a high probability of getting back an already broken device or, even worse, the client may injure himself if he uses it carelessly. To avoid these troubles, managers should provide detailed instructions on the use of tools and equipment. This is important.
- All rental points should have stands with instructions and operating rules for various tools and equipment, as well as safety regulations for their use. It is better to familiarize the consumer with these materials upon signature.
- When concluding a lease agreement, the client must provide his passport, of which it is better to take a photocopy, so that in case of failure to fulfill the agreed obligations, the unscrupulous tenant can be easily found. Usually rental points do not require a deposit, but it is better to insure yourself and still take 100% of the cost of the equipment. However, not every person carries such an amount with them. After all, for example, on average, an ordinary hammer drill costs about $1,000. Then, in this case, they are limited only to insuring the instruments, as well as determining the identity of the tenant.
When can I expect profit from investments?
As a rule, rental points provide their services on the basis of payment for the tool on a daily basis. The average rental price for one unit of equipment for one day is about 9-10% of its cost. Typically, clients can take at least two types of any instrument per day. This is what simple builders who have small amounts of work do. But large teams can rent ten units of tools at once for a period of more than a week. The average payback period for one device is about six months.
It is better to open this business in the summer, more precisely, even from the beginning of May to the end of October. At this time, the newly opened tool rental can be visited by about five to seven clients in one day. Towards the end of the year, demand will decrease significantly. As a result, there will be only two or three clients every day.
The average cost of renting a tool per day will be about 500-600 rubles. As work experience accumulates, in the coming year the tool rental business will bring its owners 15 contracts each day worth about 1 thousand rubles each.
You can also sell consumables for various devices along the way, freeing the client from going to the store. It will be convenient for the renter to purchase dowels, drills and much more directly at the tool rental point, and for you this will become an additional source of income.
If within six months from the opening of this business the average monthly income of the rental office is below one and a half thousand dollars, think about whether it is worth continuing to do this business. In this case, the tools can be sold for 50% of the cost, as well as stands and tables, gaining about 25% of the initial investment.
But let's not talk about sad things. Renting tools can bring a fairly stable income if you plan everything well and pay attention to clients and try to sense those who are ready to deceive. It would be nice to know about the structure of the tools, because sometimes you will have to rent them out for up to 20 days a month, and you need to be prepared for anything. If during the first year of work the entrepreneur has enough money to pay salaries and rent premises, then we can assume that the business has been a success and profits will soon begin to flow. Just a little time left to wait, you are on the right track.
Citizen, passport (series, number, issued), residing at the address, hereinafter referred to as " Landlord", on the one hand, and in the person acting on the basis of, hereinafter referred to as " Tenant", on the other hand, hereinafter referred to as " Parties", have entered into this agreement, hereinafter referred to as the "Agreement", as follows:1. THE SUBJECT OF THE AGREEMENT
1.1. The Lessor undertakes to provide for temporary use, and the Lessee - to accept, pay for use and promptly return technical equipment in good condition, taking into account normal wear and tear, in accordance with the nomenclature attached to the agreement and being an integral part of it, accompanied by technical documentation (hereinafter referred to as the equipment). Products and income received by the Lessee as a result of the use of leased equipment are the property of the Lessee.
1.2. At the time of conclusion of the agreement, the equipment leased belongs to the Lessor on the right of ownership, which is confirmed from the year “”, is not mortgaged or seized, and is not the subject of claims by third parties.
1.3. The equipment being leased is in good condition and meets the requirements for this type of equipment in accordance with the purpose of the leased facility.
1.4. Without the consent of the Lessor, the specified equipment cannot be subleased or used by the Lessee to other persons.
1.5. The lessor has the right to demand termination of the contract and compensation for losses in cases where he establishes facts of use of the equipment not in accordance with the terms of the lease agreement or its purpose.
1.6. The Lessor is responsible for the shortcomings of the equipment leased by him under the agreement, which completely or partially prevent the use of it, despite the fact that when renting it out (or when concluding the agreement), the Lessor may not have been aware of the presence of these shortcomings.
1.7. In cases of a significant violation by the Tenant of the procedure for making rent (payment terms) established by the agreement, the Lessor may require the Tenant to pay the rent early within the period established by the Lessor, but not more than for two periods of scheduled payments in a row.
1.8. The parties determined that the Tenant, who has properly fulfilled his obligations under the agreement, ceteris paribus, enjoys a preferential right to conclude a lease agreement for a new term upon expiration of this agreement.
1.9. The agreement is considered concluded from the moment it is signed by the parties and the equipment is transferred to the Lessee according to the acceptance certificate. The acceptance certificate indicates accessories and spare parts of equipment, keys, documents, etc.
2. PROCEDURE FOR PROVIDING AND RETURNING EQUIPMENT
2.1. Equipment is provided for a period of one year. The Tenant has the right to extend the rental period by , which he must notify the Lessor of no later than days before the end of the rental period.
2.2. The lessor is obliged to provide the equipment in good condition, complete, with the devices checked and a mark indicating their compliance with technical parameters.
2.3. The tenant assigns a representative to receive and return the equipment, who checks its good condition and completeness.
2.4. The Tenant's representative signs an obligation to return the equipment. The equipment is issued after the Lessor receives the Lessee's obligation to return the equipment and the paid invoice for the first quarter.
2.5. The Lessor is obliged to provide the Lessee with the necessary information, technical documentation, and, if necessary, send its specialist for training and familiarization with the rules of technical operation of the equipment.
2.6. In the event of equipment failure for reasons beyond the control of the Lessee, the Lessor is obliged to repair the breakdown within days or replace the failed item with a serviceable one. This case is certified by a bilateral act. For the time during which the Tenant was unable to use the equipment due to its failure, no rent will be charged and the rental period will be extended accordingly.
2.7. If the equipment fails due to improper use or storage by the Lessee, the Lessee shall repair or replace it at its own expense.
2.8. The Lessee is obliged to remove the equipment from the Lessor's warehouse and return it on his own and at his own expense.
2.9. The lessee does not have the right to sublease the leased equipment, for free use, transfer its rights and obligations under the agreement to third parties, or pledge rental rights.
2.10. The lessee has the right to return the equipment early. The Lessor is obliged to accept the equipment returned ahead of schedule and return to the Lessee the corresponding part of the rent received, calculated from the day following the day of actual return of the equipment.
2.11. The period of rental of equipment is calculated from the day following the date of receipt of its receipt.
2.12. When returning the equipment, its completeness is checked and technically inspected in the presence of the Lessee. In case of incompleteness or malfunction, a bilateral act is drawn up, which serves as the basis for making claims. If the Tenant refused to sign the act, an appropriate note is made about this in the act, which is drawn up with the participation of a competent representative of an independent organization.
3. CALCULATIONS
3.1. The rental fee for equipment is rubles quarterly.
3.2. The Lessor issues an invoice to the Lessee, which the latter must pay within days.
4. SANCTIONS
4.1. For late payment of rent within the period established by the contract, the Tenant shall pay the Lessor a penalty in the amount of % of the debt amount for each day of delay.
4.2. For delay in provision of equipment within the time period established by the order, the Lessor shall pay the Tenant a penalty in the amount of % for each day of delay, and for a delay of more than days - an additional offset penalty in the amount of % of the rental cost.
4.3. For delay in returning the equipment or components included in the kit within the time period established by the order, the Tenant shall pay the Lessor a penalty in the amount of % for each day of delay, and if the delay is more than days, an additional offset penalty in the amount of % of the cost of the equipment not returned on time.
4.4. If the equipment is not returned within days from the date of expiration of the period of use, the Tenant shall pay the Lessor a multiple of the cost of this equipment.
4.5. When returning faulty equipment damaged due to the Tenant's fault, as confirmed by a bilateral act, he shall pay the Lessor the costs of its repair and a fine in the amount of % of the cost of the damaged equipment. If upon return of the equipment it is determined that it is incomplete, the Lessee shall reimburse the Lessor for the actual costs of purchasing the missing parts of the equipment and a fine in the amount of % of the cost of the missing parts.
4.6. For transferring equipment for use to other persons without the written permission of the Lessor, the Lessee shall pay the Lessor a fine in the amount of % of the cost of the equipment.
5. FORCE MAJEURE
5.1. Neither party is liable to the other party for failure to fulfill obligations due to circumstances that arose against the will and desire of the parties and which cannot be foreseen or avoided, including declared or actual war, civil unrest, epidemics, blockades, embargoes, earthquakes, floods, fires and other natural disasters.
5.2. A party that cannot fulfill its obligation must notify the other party of the obstacle and its impact on the fulfillment of obligations under the contract within a reasonable time.
6. FINAL PART
6.1. In all other respects not provided for by the terms of the contract, the parties are guided by the current legislation of the Russian Federation.
6.2. The agreement is drawn up in two copies having equal legal force, one copy for each of the parties.
6.3. Attached to the agreement:
