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Contracting for mixing sale and leased systems
July 28, 2022
Contracting for mixing sale and leased systems
          We want to sell and install come of the equipment for a commercial security system but lease other components.  Which contract or contracts should we be using?
Name withheld
          While many provisions in the Commercial All in One [for sale and installation] and the Commercial Lease All in One are identical, there are many provisions that are not similar because you have two distinct type of transactions, sale and lease. 
          If you are intent on using only one contract then you’d have to opt for the Commercial Lease All in One.  That agreement does call for an installation charge and you can cover the equipment to be sold in that charge.  The Schedule of Equipment and Services would state that certain equipment was being sole while other components are being leased, always to remain the property of the alarm company.
          I am comfortable with the single agreement only if your Lease terms include Service.  If it doesn’t then we’d have to deal with the Limited Warranty on the sale equipment.  Since you’re providing Repair Service to the entire system that will be broader than the limited warranty on a sale.
          If you are not stuck on one agreement then use the Commercial All in One for the sale equipment and the Commercial Lease All in One for the leased equipment.  The after-install services, monitoring, service, inspection, will be checked in the Lease and the RMR will be covered in the Lease.
          As a Concierge Client you’d get a monthly contract review credit of half hour that you could apply for this type of assistance and advice.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301