Dry Lease Agreement Template

When it comes to leasing an aircraft, there are two options available – wet lease or dry lease. Wet lease involves leasing an aircraft with crew, maintenance, and insurance, while dry lease only involves leasing the aircraft. A dry lease agreement is an arrangement between a lessor (owner of the aircraft) and a lessee (the individual or organization renting the aircraft) for the lease of an aircraft without crew or supplies.

A dry lease agreement template provides a structure for the terms and conditions that govern the lease of an aircraft. This template is typically utilized by aircraft leasing companies or operators who do not have their own standard agreement. By using a dry lease agreement template, the parties can customize the agreement to their specific needs while adhering to legal and regulatory requirements.

What should be included in a dry lease agreement template?

1. Identification of the Parties: The agreement should identify the lessor and lessee, their legal names, and addresses.

2. Description of Aircraft: The agreement should provide a detailed description of the aircraft being leased, including the manufacturer, model, type, and serial number.

3. Term of Agreement: The duration of the lease should be specified in the agreement, along with any extension options.

4. Rent and Payment Terms: The rent amount and payment terms should be clearly outlined in the agreement, including frequency of payments, late payment penalties, and any other financial obligations.

5. Maintenance and Repairs: The responsibilities of the lessor and lessee in regard to maintenance and repairs should be specified in the agreement.

6. Insurance: Insurance requirements and obligations of the lessor and lessee should also be included in the agreement.

7. Termination: The agreement should outline the circumstances under which the lease can be terminated, along with the procedure for doing so.

8. Liability: The agreement should specify the liability of the parties in case of any damages or accidents involving the aircraft.

9. Governing Law: The agreement should state the governing law that will apply to the lease.

Conclusion:

A dry lease agreement template is an important document that provides a structure for the legal and financial arrangement between the lessor and lessee in the lease of an aircraft. It is essential to ensure that the agreement is comprehensive and customized to the specific needs of both parties, while also conforming to legal and regulatory requirements. By using a dry lease agreement template, the leasing process can be streamlined and less time-consuming, allowing for a seamless experience for all parties involved.