The Lessor shall not permit the Lessee to use the furniture for any activity or purpose that may cause damages to the property, including discoloration, tears, or other such damages.
The Lessee shall be held responsible and liable for damages to the furniture. In the event of a violation of the restrictions, the Lessee shall either purchase another similar material, pay the Lessor, or repair the item if satisfactory to the Lessor.
9. Security Interests
It is understood that this transaction is a lease and not a financing agreement or a conditional sale. Ownership and title to the Leased Property remain vested in the Lessor. The Lessee may not grant a security interest of any kind in the Leased Property. Lessee shall keep the Leased Property free and clear from all attachments, levees, encumbrances, and liens. In the event that any person other than Lessor attempts to create or assert an interest in the Leased Property, Lessee shall give Lessor immediate notice and take such action as Lessor requires.
If the Leased Property is not returned at the end of the Lease Term, the lease shall be extended monthly based on the terms and conditions stated in this Agreement until either party sends the other written notice of termination.
After (period of time), the undersigned parties may terminate this Agreement with immediate effect if violations occur. A notice of termination will be given (period of time) before the effective termination date.
12. Early Termination Penalty
If the Lessee terminates this Agreement before the effective termination date and without cause (violation of said Agreement), the Lessee agrees to pay an early termination penalty of (insert amount e.g. $X,XXX or XX% of the total agreed upon amount).