Equipment Hire terms and conditions


(1) Karomed Limited incorporated and registered in England and Wales with company number 04634019 whose registered office is at Millfield, Chard, Somerset TA20 2BB (Lessor).

(2) [FULL COMPANY NAME] incorporated and registered in England and Wales with company number [NUMBER] whose registered office is at [REGISTERED OFFICE ADDRESS](Lessee).


  1. Interpretation
    1. Interpretation
    2. The following definitions and rules of interpretation apply in this agreement.Business Day: a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.Commencement Date: the date that the Lessee or the End User takes Delivery of the Equipment.Delivery: the transfer of physical possession of the Equipment to the Lessee or the End User at the Site.End User: the Lessee’s patient or other person to whom Equipment is to be provided.Equipment: the items of equipment provided to the Lessee or End User in accordance with the Supply Agreement, all substitutions, replacements or renewals of such equipment and all related accessories, manuals and instructions provided for it.

      Payment Schedule: Schedule 1 which sets out the sums payable under this agreement.

      Site: the Lessee’s premises or any premises used or occupied by an End User

      Rental Payments: the payments made by or on behalf of Lessee for hire of the Equipment.

      Rental Period: the period of hire as set out in clause 3.

      Supply Agreement: the agreement between the Lessor and Lessee for the supply of Equipment in accordance with this agreement.

      Total Loss: the Equipment is, in the Lessor’s reasonable opinion or the opinion of its insurer, damaged beyond repair, lost, stolen, seized or confiscated.

      VAT: value added tax chargeable under the Value Added Tax Act 1994.

    3. Clause, schedule and paragraph headings shall not affect the interpretation of this agreement.
    4. A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality) and that person’s legal and personal representatives, successors and permitted assigns.
    5. The schedules form part of this agreement and shall have effect as if set out in full in the body of this agreement and any reference to this agreement includes the schedules.
    6. A reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or established.
    7. Unless the context otherwise requires, words in the singular shall include the plural and vice versa.
    8. Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.
    9. A reference to a statute or statutory provision is a reference to it as it is in force as at the date of this agreement.
    10. A reference to a statute or statutory provision shall include all subordinate legislation made as at the date of this agreement under that statute or statutory provision.
    11. A reference to writing or written includes fax and e-mail.
    12. Any obligation on a party not to do something includes an obligation not to allow that thing to be done.
    13. A reference to this agreement or to any other agreement or document referred to in this agreement is a reference to this agreement or such other agreement or document as varied or novated (in each case, other than in breach of the provisions of this agreement) from time to time.
    14. References to clauses and schedules are to the clauses and schedules of this agreement and references to paragraphs are to paragraphs of the relevant schedule.
    15. Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.
  2. Equipment hire
    1. The Lessor shall hire the Equipment to the Lessee subject to the terms and conditions of this agreement.
    2. The Lessor shall not, other than in the exercise of its rights under this agreement or applicable law, interfere with the Lessee’s quiet possession of the Equipment.
  3. Rental Period

    The Rental Period starts on the Commencement Date and shall continue for the period separately agreed between the Lessor and Lessee or until such time as the agreement is terminated in accordance with the remainder of its terms.

  4. Rental Payments
    1. The Lessee shall pay the Rental Payments to the Lessor in accordance with the Lessor’s standard rates set out in the Supply Agreement or account for the Lessee
    2. The Lessor shall invoice the Lessee [either on an ad hoc basis, as set out in the Supply Agreement or account for the Lessee or monthly in arrears].
    3. The Rental Payments are exclusive of VAT and any other applicable taxes and duties or similar charges which shall be payable by the Lessee at the rate and in the manner from time to time prescribed by law.
    4. The Lessee shall pay each invoice submitted by the Lessor:
      (a) Within 30 days of the date of the invoice; and
      (b) In full and in cleared funds to a bank account nominated in writing by the Lessor, and time for payment shall be of the essence of this agreement.
    5. All amounts due under this agreement shall be paid in full without any set-off, counterclaim, deduction or withholding (other than any deduction or withholding of tax as required by law).
    6. If the Lessee fails to make any payment due to the Lessor under this agreement by the due date for payment, then, without limiting the Lessor’s remedies under clause 10, the Lessee shall pay interest on the overdue amount at the rate of 5% per annum above the Royal Bank of Scotland’s base rate from time to time. Such interest shall accrue on a daily basis from the due date until actual payment of the overdue amount, whether before or after judgment. The Lessee shall pay the interest together with the overdue amount.
  5. Delivery and Installation
    1. Delivery of the Equipment shall be made by the Lessor. The Lessor shall use all reasonable endeavours to effect Delivery by the date and time agreed between the parties. Title and risk shall transfer in accordance with clause 6 of this agreement.
    2. To facilitate Delivery and installation, the Lessee shall provide all requisite materials, facilities, access and suitable working conditions to enable Delivery and installation (as necessary) to be carried out safely and expeditiously.
  6. Title, Risk and Insurance
    1. The Equipment shall at all times remain the property of the Lessor, and the Lessee shall have no right, title or interest in or to the Equipment (save the right to possession and use of the Equipment subject to the terms and conditions of this agreement).
    2. The risk of loss, theft, damage or destruction of the Equipment shall pass to the Lessee on Delivery. The Equipment shall remain at the sole risk of the Lessee during the Rental Period and any further term during which the Equipment is in the possession, custody or control of the Lessee (Risk Period) until such time as the Equipment is redelivered to the Lessor. During the Rental Period and the Risk Period, the Lessee shall, at its own expense, obtain and maintain the following insurances:(a) insurance of the Equipment to a value not less than its full replacement value comprehensively against all usual risks of loss, damage or destruction by fire, theft or accident, and such other risks as the Lessor may from time to time nominate in writing;(b) insurance for such amounts as a prudent owner or operator of the Equipment would insure for, or such amount as the Lessor may from time to time reasonably require, to cover any third party or public liability risks of whatever nature and however arising in connection with the Equipment; and

      (c) insurance against such other or further risks relating to the Equipment as may be required by law, together with such other insurance as the Lessor may from time to time consider reasonably necessary and advise to the Lessee.

    3. All insurance policies procured by the Lessee shall be endorsed to provide the Lessor with at least twenty (20) Business Days’ prior written notice of cancellation or material change (including any reduction in coverage or policy amount) and shall upon the Lessor’s request name the Lessor on the policies as a loss payee in relation to any claim relating to the Equipment. The Lessee shall be responsible for paying any deductibles due on any claims under such insurance policies.
    4. The Lessee shall give immediate written notice to the Lessor in the event of any loss, accident or damage to the Equipment arising out of or in connection with the Lessee’s possession or use of the Equipment.
    5. If the Lessee fails to effect or maintain any of the insurances required under this agreement, the Lessor shall be entitled to effect and maintain the same, pay such premiums as may be necessary for that purpose and recover the same as a debt due from the Lessee.
    6. The Lessee shall, on demand, supply copies of the relevant insurance policies or other insurance confirmation acceptable to the Lessor and proof of premium payment to the Lessor to confirm the insurance arrangements.
  7. Lessee’s Responsibilities
    1. The Lessee shall during the term of this agreement:(a) ensure that the Equipment is kept and operated in a suitable environment, used only for the purposes for which it is designed, and operated in a proper manner by trained competent staff in accordance with any operating instructions;

      (b) take such steps (including compliance with all safety and usage instructions provided by the Lessor) as may be necessary to ensure, so far as is reasonably practicable, that the Equipment is at all times safe and without risk to health when it is being set, used, cleaned or maintained by a person at work;

      (c) maintain at its own expense the Equipment in good and substantial repair in order to keep it in as good an operating condition as it was on the Commencement Date (fair wear and tear only excepted) including replacement of worn, damaged and lost parts, and shall make good any damage to the Equipment;

      (d) make no alteration to the Equipment and shall not remove any existing component(s) from the Equipment without the prior written consent of the Lessor unless the component(s) is/are replaced immediately (or if removed in the ordinary course of repair and maintenance as soon as practicable) by the same component or by one of a similar make and model or an improved/advanced version of it. Title and property in all substitutions, replacements, renewals made in or to the Equipment shall vest in the Lessor immediately upon installation;

      (e) keep the Lessor fully informed of all material matters relating to the Equipment;

      (f) permit the Lessor or its duly authorised representative to inspect the Equipment at all reasonable times and for such purpose to enter upon the Site or any premises at which the Equipment may be located, and shall grant reasonable access and facilities for such inspection;

      (g) maintain operating and maintenance records of the Equipment and make copies of such records readily available to the Lessor, together with such additional information as the Lessor may reasonably require;

      (h) not, without the prior written consent of the Lessor, part with control of (including for the purposes of repair or maintenance), sell or offer for sale, underlet or lend the Equipment or allow the creation of any mortgage, charge, lien or other security interest in respect of it;

      (i) not without the prior written consent of the Lessor, attach the Equipment to any land or building so as to cause the Equipment to become a permanent or immovable fixture on such land or building. If the Equipment does become affixed to any land or building then the Equipment must be capable of being removed without material injury to such land or building and the Lessee shall repair and make good any damage caused by the affixation or removal of the Equipment from any land or building and indemnify the Lessor against all losses, costs or expenses incurred as a result of such affixation or removal;

      (j) not do or permit to be done any act or thing which will or may jeopardise the right, title and/or interest of the Lessor in the Equipment and, where the Equipment has become affixed to any land or building, the Lessee must take all necessary steps to ensure that the Lessor may enter such land or building and recover the Equipment both during the term of this agreement and for a reasonable period thereafter, including by procuring from any person having an interest in such land or building, a waiver in writing and in favour of the Lessor of any rights such person may have or acquire in the Equipment and a right for the Lessor to enter onto such land or building to remove the Equipment;

      (k) not suffer or permit the Equipment to be confiscated, seized or taken out of its possession or control under any distress, execution or other legal process, but if the Equipment is so confiscated, seized or taken, the Lessee shall notify the Lessor and the Lessee shall at its sole expense use its best endeavours to procure an immediate release of the Equipment and shall indemnify the Lessor on demand against all losses, costs, charges, damages and expenses incurred as a result of such confiscation;

      (l) not use the Equipment for any unlawful purpose;

      (m) ensure that at all times the Equipment remains identifiable as being the Lessor’s property and wherever possible shall ensure that a visible sign to that effect is attached to the Equipment;

      (n) deliver up the Equipment at the end of the Rental Period or on earlier termination of this agreement at such address as the Lessor requires, or if necessary allow the Lessor or its representatives access to the Site or any premises where the Equipment is located for the purpose of removing the Equipment; and

      (o) not do or permit to be done anything which could invalidate the insurances referred to in clause 6.

    2. The Lessee acknowledges that the Lessor shall not be responsible for any loss of or damage to the Equipment arising out of or in connection with any negligence, misuse, mishandling of the Equipment or otherwise caused by the Lessee or its officers, employees, agents and contractors, and the Lessee undertakes to indemnify the Lessor on demand against the same, and against all losses, liabilities, claims, damages, costs or expenses of whatever nature otherwise arising out of or in connection with any failure by the Lessee to comply with the terms of this agreement.
  8. Warranty
    1. The Lessor warrants that the Equipment shall substantially conform to its specification (as made available by the Lessor), be of satisfactory quality and fit for any purpose held out by the Lessor. The Lessor shall use all reasonable endeavours to remedy, free of charge, any defect in the Equipment, provided that:(a) the Lessee notifies the Lessor of any defect in writing within ten (10) Business Days of the defect occurring;(b) the Lessor is permitted to make a full examination of the alleged defect;

      (c) the defect did not materialise as a result of misuse, neglect, alteration, mishandling or unauthorised manipulation by any person other than the Lessor’s authorised personnel;

      (d) the defect did not arise out of any information, design or any other assistance supplied or furnished by the Lessee or on its behalf; and

      (e) the defect is directly attributable to defective material, workmanship or design.

    2. Insofar as the Equipment comprises or contains equipment or components which were not manufactured or produced by the Lessor, the Lessee shall be entitled only to such warranty or other benefit as the Lessor has received from the manufacturer.
    3. If the Lessor fails to remedy any material defect in the Equipment in accordance with clause 8.1, the Lessor shall, at the Lessee’s request, accept the return of part or all of the Equipment and make an appropriate reduction to the Rental Payments payable during the remaining term of the agreement and, if relevant, return any Deposit (or any part of it).
  9. Liability
    1. Subject to clause 9.2:(a) The Lessor shall under no circumstances whatever be liable to the Lessee or End User whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss of profit, or any indirect or consequential loss arising under or in connection with the Agreement; and(b) The Lessor’s total liability to the Lessee or End User in respect of all other losses arising under or in connection with the Agreement, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall in no circumstances exceed 10% of the total value of Equipment ordered by the Lessee in the previous 12 month period.
    2. Nothing in this agreement shall exclude or in any way limit:(a) either party’s liability for death or personal injury caused by its own negligence;(b) either party’s liability for fraud or fraudulent misrepresentation; or

      (c) any other liability which cannot be excluded by law.

    3. This agreement sets forth the full extent of the Lessor’s obligations and liabilities in respect of the Equipment and its hiring to the Lessee. In particular, there are no conditions, warranties or other terms, express or implied, including as to quality, fitness for a particular purpose or any other kind whatsoever, that are binding on the Lessor except as specifically stated in this agreement. Any condition, warranty or other term concerning the Equipment which might otherwise be implied into or incorporated within this agreement, whether by statute, common law or otherwise, is expressly excluded.
    4. Without prejudice to clause 9.2, neither party shall be liable under this agreement for any:(a) loss of profit;(b) loss of revenue;

      (c) loss of business; or

      (d) indirect or consequential loss or damage

      in each case, however caused, even if foreseeable.

  10. Termination
    1. Without affecting any other right or remedy available to it, the Lessor may terminate this agreement with immediate effect by giving written notice to the Lessee if:(a) the Lessee fails to pay any amount due under this agreement on the due date for payment;(b) the Lessee commits a material breach of any other term of this agreement which breach is irremediable or (if such breach is remediable) fails to remedy that breach within a period of ten (10) days after being notified in writing to do so;

      (c) the Lessee suspends, or threatens to suspend, payment of its debts or is unable to pay its debts as they fall due or admits inability to pay its debts or (being a company or limited liability partnership) is deemed unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 or (being an individual) is deemed either unable to pay its debts or as having no reasonable prospect of so doing, in either case, within the meaning of section 268 of the Insolvency Act 1986 or (being a partnership) has any partner to whom any of the foregoing apply;

      (d) the Lessee commences negotiations with all or any class of its creditors with a view to rescheduling any of its debts, or makes a proposal for or enters into any compromise or arrangement with its creditors;

      (e) a petition is filed, a notice is given, a resolution is passed, or an order is made, for or in connection with the winding up of the Lessee (being a company);

      (f) an application is made to court, or an order is made, for the appointment of an administrator, or if a notice of intention to appoint an administrator is given or if an administrator is appointed, over the Lessee (being a company);

      (g) the holder of a qualifying floating charge over the assets of the Lessee (being a company) has become entitled to appoint or has appointed an administrative receiver;

      (h) a person becomes entitled to appoint a receiver over the assets of the Lessee or a receiver is appointed over the assets of the Lessee;

      (i) the Lessee (being an individual) is the subject of a bankruptcy petition or order;

      (j) a creditor or encumbrancer of the Lessee attaches or takes possession of, or a distress, execution, sequestration or other such process is levied or enforced on or sued against, the whole or any part of the Lessee’s assets and such attachment or process is not discharged within 14 days;

      (k) any event occurs, or proceeding is taken, with respect to the Lessee in any jurisdiction to which it is subject that has an effect equivalent or similar to any of the events mentioned in clause 10.1(c) to clause 10.1(j) (inclusive);

      (l) the Lessee suspends or ceases, or threatens to suspend or cease, carrying on all or a substantial part of its business.

    2. For the purposes of clause 10.1(b), material breach means a breach (including an anticipatory breach) that is serious in the widest sense of having a serious effect on the benefit which the Lessor would otherwise derive from:(a) a substantial portion of this agreement; or(b) any of the obligations set out in clause clause 7,

      over the term of this agreement. In deciding whether any breach is material no regard shall be had to whether it occurs by some accident, mishap, mistake or misunderstanding.

    3. This agreement shall automatically terminate if a Total Loss occurs in relation to the Equipment.
    4. Where a fixed or minimum rental period has not been agreed by the parties, the Lessee may terminate this agreement immediately at any time by giving notice in writing to the Lessor.
  11. Consequences of termination
    1. Upon termination of this agreement, however caused:(a) the Lessor’s consent to the Lessee’s possession of the Equipment shall terminate and the Lessor may, by its authorised representatives, without notice and at the Lessee’s expense, retake possession of the Equipment and for this purpose may enter the Site or any premises at which the Equipment is located; and(b) without prejudice to any other rights or remedies of the Lessee, the Lessee shall pay to the Lessor on demand:

      (i) all Rental Payments and other sums due but unpaid at the date of such demand together with any interest accrued pursuant to clause 4.4;

      (ii) any costs and expenses incurred by the Lessor in recovering the Equipment and/or in collecting any sums due under this agreement (including any storage, insurance, repair, transport, legal and remarketing costs).

    2. Upon termination of this agreement pursuant to clause 10.1, any other repudiation of this agreement by the Lessee which is accepted by the Lessor or pursuant to clause 10.3, without prejudice to any other rights or remedies of the Lessor, the Lessee shall pay to the Lessor on demand a sum equal to the whole of the Rental Payments that would (but for the termination) have been payable if the agreement had continued from the date of such demand to the end of the Rental Period, less:(a) a discount for accelerated payment at the percentage rate set out in the Payment Schedule; and(b) the Lessor’s reasonable assessment of the market value of the Equipment on sale.
    3. The sums payable pursuant to clause 11.2 shall be agreed compensation for the Lessor’s loss and shall be payable in addition to the sums payable pursuant to clause 11.1(b). Such sums may be partly or wholly recovered from any Deposit.
    4. Termination or expiry of this agreement shall not affect any rights, remedies, obligations or liabilities of the parties that have accrued up to the date of termination or expiry, including the right to claim damages in respect of any breach of the agreement which existed at or before the date of termination or expiry.
  12. Force majeure

    Neither party shall be in breach of this agreement nor liable for delay in performing, or failure to perform, any of its obligations under this agreement if such delay or failure result from events, circumstances or causes beyond its reasonable control. In such circumstances the affected party shall be entitled to a reasonable extension of the time for performing such obligations. If the period of delay or non-performance continues for [NUMBER] [weeks OR months], the party not affected may terminate this agreement by giving ten (10) days’ written notice to the affected party.

  13. Assignment and other dealings

    This agreement is personal to the parties and neither party shall assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other manner with any of its rights and obligations under this agreement.

  14. Entire agreement
    1. This agreement constitutes the entire agreement between the parties and supersedes and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to its subject matter.
    2. Each party acknowledges that in entering into this agreement it does not rely on, and shall have no remedies in respect of, any statement, representation, assurance or warranty (whether made innocently or negligently) that is not set out in this agreement.
    3. Each party agrees that it shall have no claim for innocent or negligent misrepresentation or negligent misstatement based on any statement in this agreement.
    4. Nothing in this clause shall limit or exclude any liability for fraud.
  15. Variation

    No variation of this agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives).

  16. No Partnership Or Agency
    1. Nothing in this agreement is intended to, or shall be deemed to, establish any partnership or joint venture between any of the parties, constitute any party the agent of another party, or authorise any party to make or enter into any commitments for or on behalf of any other party.
    2. Each party confirms it is acting on its own behalf and not for the benefit of any other person
  17. Third Party Rights

    No one other than a party to this agreement[, their successors and permitted assignees,] shall have any right to enforce any of its terms.

  18. Notices
    1. Any notice or other communication given to a party under or in connection with this contract shall be in writing and shall be:(a) delivered by hand or by pre-paid first-class post or other next working day delivery service at its registered office (if a company) or its principal place of business (in any other case); or(b) sent by fax to its main fax number.
    2. Any notice or communication shall be deemed to have been received:(a) if delivered by hand, on signature of a delivery receipt or at the time the notice is left at the proper address;(b) if sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the second Business Day after posting or at the time recorded by the delivery service.

      (c) if sent by fax, at 9.00 am on the next Business Day after transmission.

    3. This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.
  19. Waiver

    No failure or delay by a party to exercise any right or remedy provided under this agreement or by law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

  20. Rights and Remdies

    Except as expressly provided in this agreement, the rights and remedies provided under this agreement are in addition to, and not exclusive of, any rights or remedies provided by law.

  21. Severence
    1. If any provision or part-provision of this agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this clause shall not affect the validity and enforceability of the rest of this agreement.
    2. If any provision or part-provision of this agreement is invalid, illegal or unenforceable, the parties shall negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable, and, to the greatest extent possible, achieves the intended commercial result of the original provision.
  22. Governing Law

    This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

  23. Jurisdiction

    Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims).

This agreement has been entered into on the date stated at the beginning of it.