The world is going digital and equipment lease transactions are no exception. Today, business is increasingly conducted online, and the necessity to do so has only been amplified with the COVID-19 health crisis. Luckily, because the movement of transactions into the digital space was already well underway prior to COVID-19, the law and the market have had time to adapt to provide relatively clear guidance as to best practices to ensure transactions, including equipment lease transactions, can be completed seamlessly online.
There are two main areas of concern regarding ‘virtual’ transactions: (i) the validity of signatures; and (ii) the creation of an original, authoritative copy of the relevant lease documents. This article tackles both to provide lessors guidelines to ensure any electronic lease transaction is properly executed and the lessor is provided with the original paper.