The Owner Operator Lease Agreement is a crucial document that establishes the terms under which an independent contractor, referred to as the Owner Operator, will transport goods on behalf of a carrier. This agreement outlines responsibilities, including compliance with regulations, insurance requirements, and terms of compensation. To ensure smooth operations and protect both parties, it’s essential to fill out this form accurately; click the button below to get started.
The Owner Operator Lease Agreement is a crucial document for those involved in the trucking and transportation industry. This agreement lays out the framework under which an Owner Operator, who independently operates their vehicle, collaborates with a Carrier to transport goods. Central to this agreement are key provisions that establish responsibilities and liabilities for both parties. First, the Owner Operator is required to secure necessary permits and comply with applicable laws, ensuring legal operations. The agreement stipulates that the Owner Operator must deliver a specified number of shipments, adhering to the Carrier's service contracts. It also addresses issues of liability especially concerning hazardous materials, ensuring that Owner Operators have adequate insurance coverage before undertaking transportation tasks. The roles of employees and subcontractors are clearly defined, emphasizing that the Owner Operator retains independent contractor status, which shields the Carrier from certain liabilities. Additionally, the agreement emphasizes confidentiality and the need for formal communication between parties to maintain professional integrity. This leasing agreement not only serves as a guideline for the transportation of freight but also protects the interests of both the Carrier and the Owner Operator, making it an essential document in the realm of freight transportation.
OWNER OPERATOR LEASE AGREEMENT
THIS agreement, entered into this ____day of ______________20___ between
______________________, (Hereinafter designated as “Carrier”), and
______________________, (Hereinafter designated as “Owner Operator”),
WITNESSETH:
WHEREAS, Owner Operator is engaged in the transportation of general freights of all kinds (FAK) by motor vehicle as a contract Carrier and desires to transport goods for Carrier; and WHEREAS, to facilitate such transportation and for the convenience in handling such transaction, the parties have agreed to the terms and conditions under which transportation shall be made, as hereinafter set forth.
NOW THEREFORE, in consideration of the premises and the mutual promises and conditions herein contained it is hereby agreed as follows:
(1) GENERAL PROVISIONS:
(a)Owner Operator, in its operations hereunder, shall secure all permits, licenses and approvals necessary for the accomplishment of the work to be done hereunder and shall comply fully with all applicable laws, rules, orders and regulation of all governments and agencies thereof, whether federal, state or local, and shall furnish Carrier with satisfactory evidence thereof whenever requested to do so. Among other things, Owner Operator shall provide to Federal Motor Carrier Safety Administration certificate showing Owner Operator holds contract authority from such commission covering the commodities and transportation routes to which this agreement relates, and Owner Operator shall give immediate notice to Carrier of any cancellation or modification of such authority. When transporting hazardous wastes, substances to or materials pursuant this agreement, Owner Operator shall comply with all applicable federal, state and local hazardous wastes, substances or materials laws and regulations and shall furnish Carrier with satisfactory evidence thereof whenever requested to do so.
(b)The Owner Operator hereby agrees to deliver for the Carrier for transportation, not less than the following amount: one shipment of freight of all kinds (FAK) during a period of
____________________. The Owner Operator further agrees, subject to availability and loading tendered for transportation by Carrier.
(c)All such cargo shall be transported hereunder in accordance with this agreement and the provisions of Carrier’s tariff’s or service contracts applicable to such cargo. Cargo shall include any containers in which goods are packed when received by Owner Operator hereunder.
(d)This agreement shall not be modified or altered unless in writing, signed by both parties to this agreement.
(e)This contract shall terminate all previous contracts between the parties hereto relating to the transportation Freight all kinds (FAK) and shall remain in full force and effect for the term of this agreement.
(f)It is to be clearly understood and it is the intention of the parties hereto that Owner Operator shall employ all persons operating trucks hereunder, that such persons shall be and remain the employees of the Owner Operator, that the Owner Operator shall be an independent contractor of the Carrier and that nothing herein contained shall be construed to be inconsistent with that relation or status.
(g)It is further to be clearly understood that where the Owner Operator engages any
subcontractor for any portion of the work hereunder, such engagement will not alter the relationship of the Owner Operator to the Carrier as an independent contractor and shall not establish any relationship or obligation between Carrier and any subcontractor. Owner Operator will continue to be solely responsible for compliance with or performance for any subcontractors actually doing such work and will otherwise defend, indemnify and save harmless the Carrier, its agents and servants from any such claims, liabilities, penalties and fines (whether criminal or civil), judgments outlays and expenses (including attorney’s fees).
(h)Owner Operator shall defend, indemnify and save harmless the Carrier, its agents and servants from any and all liabilities, penalties and fines (whether criminal or civil), judgments, outlays and expenses (including attorney’s fees) resulting from Owner Operator’s failure or the failure of Owner Operator’s agents, employees, subcontractors or representatives to comply with any applicable laws and regulations, whether federal, state or local, or property arising out of the performance of this agreement caused by the acts, failure to act or negligence of Owner Operator, subcontractors, its agent, employees, or representatives.
(i)Owner Operator will assume all liability for and will otherwise defend, indemnify and save harmless the Carrier, its agents or servants from any and all liabilities, penalties and fines (whether criminal or civil). Judgments, outlays and expenses (including attorney’s fees) resulting from any release or discharge of hazardous wastes, substances or materials that occurs during transportation and Owner Operator will assume all responsibility and liability for cleanup of any release or discharge of hazardous wastes, substances or materials that occurs during transportation and will otherwise defend indemnify and save harmless the Shipper, its agents and servants from any and all liabilities, penalties and fines (whether criminal or civil), judgments, outlays and expenses (including attorney fees) resulting from the cleanup of any such release or discharge.
(j)Owner Operator will defend, indemnify and save harmless the Carrier, its agents and servants from any and all liabilities, penalties and fines (whether criminal or civil in nature), judgments, outlays and expenses (including attorney’s fees) resulting from the Owner Operator’s failure or the failure of Carrier’s agents, employees, subcontractors or representatives to perform any of the terms, conditions, promises or covenants contained in this contract.
(k)Carrier shall have full responsibility for all payments, benefits, and rights of whatsoever nature to or on behalf of any of its employees and to ensure that its subcontractor shall have the same responsibility.
(l)It is further agreed by the parties hereto that Owner Operator is not to display the name of Carrier upon or about any of the Owner Operator’s vehicles, without Carrier’s written consent.
(m)Any limitation on or exemption from liability in any tariff, receipt, bill of lading, or other document issued by or on behalf of Owner Operator shall have no legal effect and shall not otherwise apply with respect to shipments tendered by or on behalf of Carrier unless specifically agreed in writing by the Owner Operator. Any limitations on or exemptions from liability contained in a Owner Operator’s tariff, receipt, bill of lading, or other document issued in conjunction with a specific shipment moving under this Contract shall have no legal effect and shall not otherwise be applicable to such shipments.
2.RECEIPTS OF GOODS:
(a)Owner Operator agrees, upon receipt from Carrier of such quantities of Carrier’s goods as may be tendered from time to time under this agreement by Carrier or by a third party on behalf of Carrier to give Carrier a written receipt thereof, which shall be prima facie evidence of receipt of such goods in good order and condition unless otherwise noted upon the face of such receipt; and, in the case of transportation of hazardous wastes, substances or materials such written receipt shall be prima facie evidence of receipt of such wastes, substances or materials in a condition and manner which complies with all applicable laws and regulations, whether federal, state or local. In the event that Owner Operator elects to use a tariff, bill of lading, manifest or other form of freight receipt or contract, any terms, conditions and provisions of such bill of lading, manifest or other form shall be subject and subordinate to the terms, conditions and provisions of this Agreement, and in the event of a conflict between the terms, conditions and provisions of such tariff, bill of lading, manifest or other form and this Agreement, the terms, conditions and provisions of this Agreement shall govern.
(b)Owner Operator agrees to take signed receipts upon forms satisfactory to Carrier from all persons to whom deliveries shall be made, which receipts shall be retained by Owner Operator for at least two (2) years and shall be available for inspection and use of Shipper.
3. CARE AND CUSTODY OF MERCHANDISE:
(a)Owner Operator hereby assume the liability of an insurer of the prompt and safe transportation of all goods entrusted to its care, and shall be responsible to Carrier for all loss or damage of whatever kind and nature and howsoever, caused to any and all goods entrusted to Owner Operator hereunder occurring, while same remains in the care, custody or control of Owner Operator or to any other persons to whom the Owner Operator may have entrusted said goods and before said goods are delivered as herein provided or returned to Carrier.
(b)On occasion, Owner Operator will be requested to transport reefer cargo refrigerated containers. On all occasions, refrigerated containers must be transported with an attached generator set (nose mounted or under-slung) unless specifically advised by Carrier in writing that a generator set is not required. It is the Carrier’s responsibility to ensure a generator set is attached and running properly at the assigned temperature at the time of interchange.
4. INSURANCE:
(a)Owner Operator agrees to be a motor Carrier member in good standing in the Uniform Intermodal Interchange Agreement (UIIA). Owner Operator further agrees to comply with the insurance requirements of the Federal Motor Carrier Safety Administration and the states through which the Owner Operator operates. Owner Operator’s insurance coverage shall, at a minimum, comply with the minimum requirements as stated in the UIIA.
(b)The Owner Operator agrees to carry cargo, personal injury, death, equipment and general insurance and will promptly reimburse Carrier for the value of any goods (including containers) lost or destroyed during the period of Owner Operator’s responsibility under clause (3) (a). All such insurance shall be as additional insured.
(c)The Owner Operator agrees to provide the UIIA with appropriate certification and a copy of each policy of insurance and renewals thereof or other satisfactory evidence that Owner Operator has obtained insurance in compliance with the requirements and terms of this agreement.
(d)The Owner Operator will arrange with its broker and/or insurance Carrier(s) that notice of coverage and limits will be sent directly to the UIIA, as well and cancellation notices and
amendments to coverage(s).
5. ASSIGNMENTS:
This contract cannot be assigned by Owner Operator without the written consent of Carrier.
6. COMPENSATION, COMMODITIES, TERRITORY:
(a)Acceptable rates and charges, rules and regulations, the commodities to be transported, and the points from and to which they shall be transported, are to be furnished the Carrier, the Federal Motor Carrier Safety Administration and other regulatory bodies as may be required, as set forth in the rate schedule attached hereto and made a part hereof. Carrier agrees to pay Owner Operator as full compensation for services to be performed by Carrier under said rules and regulations the rates and charges set forth in the rate schedule, within sixty (60) days of invoice date.
(b)This agreement is to become effective upon signature by Carrier and Owner Operator.
7. CONFIDENTIALITY:
Owner Operator shall treat as confidential, and not to disclose to third parties, the terms of this agreement or any information concerning the Carrier’s business including information regarding suppliers, products and customers without in each instance obtaining Carrier’s written consent in advance.
8. NOTICES:
All notices given pursuant to this agreement shall be given in writing by certified or registered mail, return receipt requested, and addressed as directed by the parties from time to time.
CARRIER: ______________________________________________________________
9. APPLICABLE LAW:
To the extent state law applies, this agreement shall be governed by and interpreted in accordance with the laws of the state of ____________________.
SIGNATURES
•OWNER OPERATOR
_______________________________
NAME
•CARRIER
Filling out the Owner Operator Lease Agreement is a critical process that establishes the relationship and obligations between the Carrier and the Owner Operator. Carefully completing this form ensures clarity and compliance for both parties moving forward.
What is an Owner Operator Lease Agreement?
An Owner Operator Lease Agreement is a contract between an individual who owns a truck (the Owner Operator) and a carrier company (the Carrier). This agreement outlines the terms and conditions under which the Owner Operator will transport goods for the Carrier. The contract ensures that both parties understand their responsibilities regarding the transportation process, insurance coverage, and payment for services rendered.
What obligations does the Owner Operator have under the agreement?
The Owner Operator must secure all necessary permits and licenses for transporting freight and comply with applicable laws and regulations. This includes providing evidence of authority to operate and adhering to safety standards. The Owner Operator is also required to deliver a minimum amount of freight during the agreed period and must accept liability for any damages or losses that occur during transportation.
Can the Owner Operator subcontract the transportation work?
Yes, but the Owner Operator remains fully responsible for ensuring that subcontractors comply with the terms of the agreement. Any actions or failures of the subcontractors will affect the Owner Operator's liability. The relationship between the Owner Operator and Carrier remains independent, and the Carrier bears no responsibility towards the subcontractor.
How is compensation determined in the agreement?
Compensation is based on agreed-upon rates and charges detailed in a rate schedule attached to the agreement. The Carrier is responsible for making payments to the Owner Operator within 60 days of receiving an invoice. This ensures timely remuneration for services rendered by the Owner Operator.
What types of insurance does the Owner Operator need to maintain?
The Owner Operator must carry various forms of insurance, which includes coverage for cargo, personal injury, death, and liability associated with equipment. This coverage needs to meet minimum requirements set forth by the Federal Motor Carrier Safety Administration and must include the Carrier as an additional insured. The Owner Operator is also required to provide proof of insurance and any updates to the Carrier.
What happens if the Owner Operator causes damage during transportation?
If the Owner Operator causes damage or loss to the goods during transport, they are liable for those damages. The Owner Operator must indemnify the Carrier for any claims arising from their actions, which includes attorney’s fees and other related expenses. This places a significant level of responsibility on the Owner Operator to ensure that all goods are handled with care.
Is the Owner Operator allowed to display the Carrier's name on their vehicle?
No, the Owner Operator is not permitted to display the Carrier’s name on their vehicles without prior written consent from the Carrier. This stipulation helps protect the Carrier’s brand identity and ensures that their association with the Owner Operator is controlled and purposeful.
What should be noted when transporting hazardous materials?
When transporting hazardous materials, the Owner Operator must comply with all applicable federal, state, and local laws. This includes obtaining the necessary documentation before transport and providing evidence of compliance to the Carrier upon request. Additionally, the Owner Operator assumes full liability for any release or discharge of hazardous materials during transport.
Filling out the Owner Operator Lease Agreement form correctly is crucial to avoid potential disputes and ensure smooth operation. One common mistake is neglecting to fill in specific dates. The section that requires the date of the agreement should never be left blank. This date is essential as it marks the beginning of the contractual obligations and can affect the legal interpretation of the agreement.
Another frequent error involves failing to provide complete names and addresses. It’s important that both the Carrier and the Owner Operator clearly write their full legal names and the correct addresses. Incomplete or incorrect information can create confusion and potentially lead to legal complications down the road.
People often forget to review all terms carefully. Skimming over sections that outline obligations, payments, and liabilities may lead to misunderstandings later. Each party should take the time to understand what they are agreeing to and ensure all terms are clearly stated and understood.
Pay attention to optional yet important details. For instance, not specifying the amount of freight to be transported or neglecting to address insurance requirements can create issues. Clearly defining these elements helps prevent disagreements about expectations and responsibilities later on.
Legal terminology can sometimes be overwhelming, but one must not ignore the language used in the agreement. Misinterpreting terms can lead to accepting unintended obligations or liabilities. It’s wise for both parties to consult someone knowledgeable if there’s uncertainty about what something means.
Lastly, many forget to sign and date the document. This is a critical step. Without proper signatures and dates from both parties, the agreement may be considered void or unenforceable. Always double-check that everything is signed before considering the contract finalized.
Several documents accompany the Owner Operator Lease Agreement to ensure a well-organized and legally compliant transportation arrangement. These documents serve various purposes, from compliance and liability to receipts and confirmations of service. Below is a list of these key forms and their brief descriptions.
Using these documents in conjunction with the Owner Operator Lease Agreement can help streamline operations and protect the interests of all parties involved. Proper documentation ensures that both the Carrier and the Owner Operator have a clear understanding of their rights, responsibilities, and claims processes related to their partnership.
When filling out the Owner Operator Lease Agreement form, attention to detail is crucial. Here are ten important things to remember:
Equally important are the things to avoid:
By following these guidelines, you can complete the lease agreement effectively and ensure a smoother process for both parties involved.
Misconceptions about the Owner Operator Lease Agreement can lead to confusion for both parties involved. Here are five common misunderstandings:
The Owner Operator Lease Agreement is essential for establishing a clear working relationship between the Carrier and the Owner Operator. This document outlines the expectations, responsibilities, and legal obligations of both parties.
One crucial component is that the Owner Operator must secure all necessary permits and licenses, complying with local, state, and federal regulations. This ensures the legality of their operations and smooth transportation of freight.
Owner Operators are required to transport a minimum amount of freight during the contract period, ensuring regular availability and commitment to the Carrier. This provision fosters reliability within the business relationship.
Changes to the agreement must be documented in writing and signed by both parties. This process protects both the Carrier and the Owner Operator by maintaining clarity and accountability in their relationship.
Upon receiving freight, the Owner Operator must provide written receipts that actually confirm the goods are in good order. These documents serve as important records for both parties and are crucial in case of disputes regarding the condition of transported goods.
Insurance coverage is a significant aspect of the Owner Operator's obligations, including cargo and liability insurance. This coverage not only protects the Owner Operator but also serves as a safeguard for the Carrier against potential losses.
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