Use this owner-operator lease agreement template if you’re planning to expand your fleet or meet your increasing demands. This template offers flexibility and a cost-effective solution for leasing vehicles and services.
This Owner-Operator Lease Agreement is made and entered into on (Date), by and between:
Name: [Carrier.FirstName] [Carrier.LastName]
Address: [Carrier.StreetAddress] [Carrier.City] [Carrier.State] [Carrier.PostalCode]
Owner-Operator
Name: [OwnerOperator.FirstName] [OwnerOperator.LastName]
Address: [OwnerOperator.StreetAddress] [OwnerOperator.City] [OwnerOperator.State] [OwnerOperator.PostalCode]
Owner-Operator is involved in transporting general freight of all kinds (FAK) through motor vehicles. They agree to transport goods for the Carrier. The parties agree to the following terms and conditions to make the transportation process smoother and more convenient.
The owner-operator must get all required permits, licenses, and approvals for the work. They must follow all laws and regulations from the government and their agencies. Upon request, they must promptly provide Carrier with satisfactory evidence of compliance. Additionally, the Owner-Operator must furnish the Carrier with a certificate from the Federal Motor Carrier Safety Administration, demonstrating that they possess contract authority covering the commodities and transportation routes specified in this agreement.
Owner-Operator is responsible for employing all individuals operating trucks under this agreement. These individuals are to be considered and maintained as employees of the owner-operator. It is further clarified that the owner-operator is an independent contractor for the Carrier. This agreement is designed to uphold and not contradict this independent contractor status, and nothing within this document should be interpreted otherwise.
The Owner-Operator agrees to defend, indemnify, and hold harmless the Carrier, as well as its agents and servants, from all liabilities, penalties, and fines (whether criminal or civil) if this obligation arises due to the Owner-Operator's failure to fulfill any of the terms and conditions.
This Agreement shall commence on (Start Date) and continue for (Number of Months/Weeks) unless earlier terminated as stated herein. Upon the expiration of the initial term, the parties may, at their sole discretion, renew the Agreement for successive periods of (Number of Months/Years) each, subject to the terms and conditions set forth herein.
The owner-operator agrees to provide a written receipt upon receiving quantities of goods from the Carrier. Unless otherwise noted, this receipt is sufficient proof of receiving the goods in good order and condition.
For the transportation of hazardous wastes, substances, or materials, the written receipt establishes sufficient proof of receiving them in compliance with all applicable laws and regulations, be they federal, state, or local.
Suppose the owner-operator uses a tariff, bill of lading, manifest, or another freight receipt or contract. In that case, such documents' terms, conditions, and provisions are subject and subordinate to the terms outlined in this Agreement. In the case of a conflict between the terms of such documents and this Agreement, the terms take precedence and govern the arrangement.
Owner-Operator assumes an insurer's liability for promptly and safely transporting all goods entrusted to its care. They are responsible to the Carrier for all loss or damage of any kind and nature, including all goods assigned to them. This responsibility extends to occurrences while the goods are in the owner-operator's care, custody, or control. The liability remains until the goods are delivered as specified herein or returned to the Carrier.
Before loading, the Owner-Operator shall inspect the merchandise for any visible damage or defects. Any discrepancies or concerns shall be immediately reported to the contracting party. The Owner-Operator shall ensure that all merchandise is adequately secured and packaged to prevent damage during transportation.
Suppose any delays, accidents, breakdowns, or other issues affect the timely delivery of merchandise, the Operator shall promptly notify the contracting party and take reasonable measures to mitigate potential damage. They shall provide regular updates on the transportation status, including any unforeseen circumstances that may impact the agreed-upon schedule.
This section is a crucial component in this template as it outlines the responsibilities and requirements of both parties. Specify the legal obligation of an owner-operator to maintain insurance coverage under FMCSA regulations in your owner-operator lease agreement template.
The Owner-Operator agrees to be a member in good standing within the Uniform Intermodal Interchange Agreement (UIIA). The Owner-Operator agrees to follow the insurance requirements set by the Federal Motor Carrier Safety Administration (FMCSA) and the states in which they operate. The maintained insurance coverage must meet at least the minimum UIIA requirements.
The Owner-Operator agrees to maintain insurance coverage for cargo, personal injury, death, equipment, and general liability. Suppose the loss or destruction of goods, including containers, occurs during transporting the goods. They will promptly reimburse the Carrier for the value of the lost or destroyed items.
The Owner-Operator agrees to furnish the UIIA with the necessary certification and copies of each insurance policy. This demonstrates compliance with the insurance requirements outlined in this agreement.
The owner-operator shall not assign any rights or obligations under this Agreement without the prior written consent of the Carrier.
Your owner-operator lease agreement template must clearly state your payment method, as it may vary. You can also specify in this section the necessary document they must submit before payment. The payment period must be reasonable and shouldn’t be longer than 15 days.
The Owner-Operator shall be entitled to compensation of $(Amount). The payment will be made within (Number of Days) days of the invoice date. Payments shall be made by (Method of Payment), as agreed upon by both parties.
The Owner-Operator must keep the terms of this agreement and any information about the business confidential. It includes details about the suppliers, products, and customers. They cannot disclose this information to third parties without obtaining the Carrier’s written consent.
Both parties may terminate this Agreement by providing written notice at least (Number of Days) before the intended termination date. Upon termination, the Owner-Operator must return any equipment or materials belonging to the Carrier. The Carrier shall settle any outstanding payments owed to them, including any applicable reimbursements or expenses.
Both parties may terminate this Agreement immediately upon written notice if the other party breaches any material provision. Such breach remains uncured for (Number of Days) days after receipt of written notice specifying the nature of the violation. The non-breaching party may take action, such as claiming damages or seeking court orders, as the law allows.
Any proposed changes must be presented in writing, outlining the proposed changes or additions. The parties shall negotiate to agree on the proposed amendments. Any changes will be valid only when both parties agree in writing.
Suppose any provision of this agreement is found to be invalid or unenforceable. The other terms shall remain enforceable to the extent permitted by law.
All required or allowed communications under this Agreement must be in writing. Notices are deemed given when delivered in person or sent by certified or registered mail, with postage prepaid and return receipt requested. The addresses of the parties for these communications are specified in this Agreement. However, either party may designate a different address by providing notice to the other party.