Some equipment leases provide that the lease term begins as soon as equipment is delivered.  Others provide that the term of the lease does not begin until the equipment has been inspected by lessee and formally accepted.

The difference can be crucial.  Bear in mind that you cannot stop making payments on a lease or "return" the equipment even if the equipment does not work or if it is not what you ordered.  Once the lease term begins, you must make payments, just as if you had borrowed money from a bank and purchased the equipment yourself. 

For this reason, we recommend that clients never agree that the lease term begins until after they have inspected the equipment and determined that it is what they wanted and that it works properly.  This means that you should not sign an "Acceptance Certificate" before the equipment is delivered and inspected and that you should be sure the lease provides that the term does not begin until you confirm that the equipment is acceptable.

If you have not yet signed the lease and it provides that the term begins when the equipment is delivered, or that it begins when the lessor pays for the equipment, you should talk to an attorney about the rights you are being asked to waive.

Even if you have signed an Acceptance Certificate but never had a real opportunity to inspect the equipment, you may have rights.  Some courts will uphold the lessee’s right to inspect before the term of the lease begins, but it is important to move as quickly as possible.