Equipment Damage Assessment Policy
The Damage Assessment Policy referenced in our Equipment Rental Agreement
The following Equipment Damage Assessment Policy (hereinafter referred to as the "Policy") breaks down in detail the methodology and categorization of assessment for any damage done to the Equipment whilst in the Second Party's possession and/or under its control/custody.
This Policy, as may be amended from time to time, forms part of the Agreement and shall have effect as if set out in the body of the Agreement, and is legally binding on the Second Party. Definitions used in the Agreement shall have the same meaning and effect when used in this Policy.
1. Non-Repairable: Total Loss
1.1 Any damage or loss done to the Equipment during the Rental Period, and/or any time whilst the Equipment is in the Second Party's possession and/or under its control/custody, which affects such Equipment beyond repair and renders it non-operable, a compensation is due to the First Party from the Second Party for the full price of such Equipment, as well as losses in profits caused by the inability to rent such Equipment for the replacement duration.
Compensation can reach up to 120% of the full purchase price of such Equipment.
1.2 Any damage or loss done to the Equipment during the Rental Period, and/or any time whilst the Equipment is in the Second Party's possession and/or under its control/custody, which renders such Equipment beyond repair and renders it non-operable, and such Equipment is IRREPLACEABLE (Vintage: out of production Equipment, rare/limited Equipment, restricted Equipment); compensation is due to the First Party from the Second Party for the full price of such Equipment, as well as loss in profits caused by the inability to rent said such Equipment for the replacement duration, as well as an additional fee to compensate the First Party for the irreplaceable nature of such Equipment and the First Party's inability to reacquire equipment identical to such Equipment.
Compensation can reach up to 150% of the full purchase price of such Equipment.
2. Repairable: Minor and Substantial Damage
2.1 Minor Damage: Any minor structural damage OR damage or loss to replaceable parts in which such Equipment remains operable and is not rendered unusable, and can be repaired or replaced in house (i.e. by the First Party). Such damage or loss includes, but is not limited to, certain cracks, dents, tears, small breakages and/or loss to secondary components of the Equipment.
Compensation can reach up to 25% of the full purchase price of such Equipment as costs of repair.
2.2 Substantial Damage: Any substantial damage or loss to essential components OR damage to parts of the Equipment which renders such Equipment no longer operable and is rendered unusable for the repair duration.
Compensation can reach up to 75% of the full purchase price of such Equipment depending if the repair is done in house (i.e. by the First Party) or is outsourced for external repair, in addition to loss in profits caused by the inability to rent such Equipment for the repair duration.