If you are planning to lease a copier, there are several aspects that you should carefully look at in a contract. Most contracts are designed to protect the parties issuing the contract from as many scenarios as possible.
Following are some of the things that you should check in a copier lease:
Breach of contract
Malaysian laws are strict when it comes to enforcing a service contract, so it is pretty challenging to break a copier lease contract.
The only way to get out is gross negligence on the part of the provider. If you think that their service is slow or the machine breaks down, you could add in gross negligence.
Unfortunately, though, there are no legal provisions for that.
To add to gross negligence, it would have to be extreme, like never coming to fix your machine after repeated complaints or never maintaining the device, etc.
A quality service provider will make sure that they build brand trust by any means, even if they have to admit their faults and allow the company to move out of the agreement.
Automatic renewal
This is a clause in the agreement that allows the service provider to renew someone’s business. If such a clause is included in the contract, you will have to serve a letter of notice at least 30-60 days before the contract’s termination.
Failing to do so will cause the contract to renew itself for an additional 12 months (depending on the agreement). Make sure that you are fully aware of the cancellation procedure of the contract with the company.
Early termination fee
Before getting into a contract, make sure that you are aware of any early termination fees.
Copier dealers often penalize businesses for early termination of the contract as per the Malaysian Contract Act.
Some providers will penalize you if you breach their Intent policy letter, while others will hold you to fulfil the entire agreement.