Reviewing a photocopier or office equipment lease

A photocopier lease is two contracts sold as one: a lease of the machine, which the dealer sells on to a finance company, and a service agreement with the dealer for toner, maintenance and a cost per copy. The two contracts have different counterparties and different terms, and the term, the renewal and the settlement on exit decide the cost. I review the documents from the customer's side and return them marked up with a written explanation of what they commit the business to and the terms worth asking to change, for a fixed fee of £495 in three working days.

Who this is for

Businesses, practices, schools and charities in England and Wales taking a lease of a photocopier, multifunction printer, franking machine or other office equipment with a service agreement, whether a first machine or an upgrade the dealer has proposed. The customer is a business; a sole trader or a small partnership may have a regulated agreement.

What to look for in a photocopier or office equipment lease

Two contracts, two counterparties

The lease is assigned by the dealer to a finance company on signature, so rentals are owed to the finance company whether or not the dealer performs the service agreement, and the service agreement is owed by the dealer whether or not the finance company's machine works. The review checks the two documents together, asks for a right to terminate the service agreement if the dealer fails to maintain the machine, for the dealer to remain responsible for the machine's performance during the lease, and for the lease to say that the finance company's assignee takes subject to the customer's rights.

The minimum term, the notice window and the renewal

Equipment leases run for a fixed term and renew for a further period unless the customer gives notice in a narrow window before expiry, and service agreements do the same. The review checks the term, the notice window and the renewal period on each document, asks for notice to be accepted at any time before expiry, for renewal to be on a rolling basis rather than a further fixed term, and for the finance company's obligation to tell the customer when the term is ending. Where the customer is a sole trader or a partnership of two or three partners the Consumer Credit Act 1974 may regulate the lease and restrict the term and the enforcement.

Cost per copy, minimum volumes and increases

The service charge is a cost per copy against a minimum monthly volume, billed whether or not the volume is used, and the dealer reserves the right to increase the rate each year. The review checks the minimum against the customer's usage, asks for the increase to be capped and notified, for colour and mono rates to be stated, for the meter reading process and the customer's right to check it, and for the dealer's right to charge for consumables and call-outs outside the service charge to be limited to misuse.

Upgrades, settlements and the lease that never ends

Dealers propose an upgrade before the term ends and fund the settlement of the old lease by adding it to the new one, so that each machine costs more than the last and the customer never reaches the end. The review asks for the settlement figure to be shown separately from the new rental, for a statement of the amount rolled over, and for the settlement calculation on early termination to be stated and to reflect the finance company's loss, since a charge out of all proportion to its legitimate interest is unenforceable under Cavendish Square Holding BV v Makdessi [2015] UKSC 67.

What the salesperson said and what the contract says

The documents will say that the customer has not relied on anything outside them, which removes the salesperson's assurances about the settlement of the old lease, the cost per copy and the machine's capacity. A statement that induced the customer to sign can found a claim under section 2 of the Misrepresentation Act 1967 unless a reasonable non-reliance clause excludes it under section 3, and misleading marketing to a business is prohibited by the Business Protection from Misleading Marketing Regulations 2008. The review asks for the assurances that mattered to be recorded in the documents.

The machine, the exclusions and the return

The finance company excludes the implied terms as to the machine's quality and fitness in section 9 of the Supply of Goods and Services Act 1982, which against a business is valid only if reasonable under section 7 of the Unfair Contract Terms Act 1977, and leaves the customer to claim against the dealer. The review checks the dealer's warranty and the swap-out commitment where the machine fails, the customer's obligations for insurance and return at the end of the term, and the collection charge and the data on the machine's hard drive, which the customer should be entitled to have wiped before collection under the UK GDPR and the Data Protection Act 2018. The Late Payment of Commercial Debts (Interest) Act 1998 applies to sums due either way.

What it costs

Standard review, £495. Marked-up document and a written explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the contract review page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• Your own contract returned with my amendments as tracked changes, plus a clean version with every change accepted, ready to send to the other side
• Comments in the document where a point needs explaining
• A written explanation of what I have changed and why, by email or as an attachment if it is lengthy, marking the points I would hold firm on and the ones that are negotiable
• A view on what is normal market practice and what is the other side pushing their luck
• One round of follow-up questions by email, included

What is not included

• Negotiating directly with the other side, which I quote separately once I know who is on the other side. Where the other side is willing to share a live document, I can work in that document directly
• Drafting a replacement contract from scratch
• Advice on the law of any jurisdiction other than England and Wales
• Tax, accounting or regulatory advice
• Disputes about a contract that is already signed

Questions I am often asked

The dealer says our old lease will be settled if we upgrade. Where does that appear in the paperwork?

Often nowhere, and the settlement is added to the new rental instead. The review asks for the settlement figure and the amount rolled into the new lease to be stated in the documents, so that the cost of the upgrade is visible and the assurance is enforceable.

We missed the notice window and the lease has renewed. Are we stuck?

For the renewal period, on the document's terms, unless the notice provision is unreasonable or the agreement is regulated. The review checks the renewal clause and, for the next machine, asks for notice to be accepted at any time before expiry and for renewal on a rolling basis.

The machine keeps breaking down but the finance company still wants paying. Is that right?

Under the documents as drafted, yes: the finance company owns the machine and excludes responsibility for it, and the service is the dealer's obligation. The review asks for a right to terminate the service agreement and to require the dealer to replace the machine, and for the lease to reflect the customer's rights against the dealer.

Related guidance and services

• Contract review, £495, the service this page describes
• Terms and conditions drafting, £995
• Reviewing an equipment lease or hire purchase agreement
• Reviewing a coffee machine or water cooler rental agreement

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.