Use this easy template to prepare Price Protection clauses for an Equipment Lease. The provisions are generic and can be used in almost every country. You can download the free file, or copy and paste the following text into your lease.
Calculation of Lease Charges
1. The purchase price on which the monthly lease charge is calculated shall be the Lessor's generally available price on the installation date and shall be subject to all price increases announced between the date of this Agreement and the installation date. Price increases effective during the _____ weeks/months immediately prior to the installation date shall not be applicable if the Lessee's written order was received by the Lessor prior to the announcement of the price increase. In the event that a price increase is applicable to this equipment, the Lessee may cancel the order for that equipment upon written notice to the Lessor within ____________ of notification of the price increase. Otherwise, the higher price shall be effective.
2. If the Lessor's purchase price on which the monthly lease charge is based is lower for any on order equipment on the installation date than the price for the equipment as stated in the attached equipment schedule, the Lessee shall have the benefit of the lower price in the calculation of the monthly lease charge.
Price Protection Period
(a) Prices for on order hardware shall be Supplier's currently published price list and shall be subject to all price increases, except that increases effective during the ______ months immediately prior to the date of shipment of such hardware shall not be applicable if the Customer's written order was received by Supplier prior to the announcement of the price increase. In the event that a price increase is applicable to any of this hardware, the Customer may cancel the order for that hardware upon written notice to Supplier within ____ month(s) of notification of the price increase; otherwise the higher price shall be effective.
(b) If Supplier's currently published price for any on order hardware on the date of installation is lower than the price for the hardware as stated in the applicable supplement, the Customer shall have the benefit of the lower price.
(c) The term â€œSupplier's currently published priceâ€ does not include prices for sales of any hardware under terms and conditions other than those in Supplier's then current Purchase Agreement form, exclusive of any amendments to it.
(d) Customer shall be responsible for payment of all taxes paid or payable by Supplier (exclusive of taxes based on Supplier net income) for any products or services supplied.
Last Updated: 23-October-2018