How is "default" typically defined in leasing contracts?

In leasing contracts, "default" is typically defined as the failure to fulfill the obligations or terms set forth in the lease agreement. This encompasses a wide range of potential breaches, not just limited to financial obligations like missed payments. For example, a lessee may default by not maintaining the leased equipment according to the terms of the contract, or by using the equipment for unauthorized purposes. This broader definition is critical in lease agreements because it allows the lessor to take action for a variety of reasons, ensuring that the lessee adheres strictly to all contractual obligations. This helps to protect the lessor’s interests and maintain the integrity of the leasing arrangement.