Get Owner Operator Lease Agreement Form

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.

Outline

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 Preview

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.

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.

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

_______________________________

NAME

➤ PDF File

Document Data

Fact Name	Fact Details
Purpose of the Agreement	The Owner Operator Lease Agreement facilitates the transportation of goods between the Owner Operator and the Carrier. It establishes the terms and conditions under which these services will be rendered.
Compliance Requirements	The Owner Operator must secure all necessary permits and comply with federal, state, and local laws. This includes laws around hazardous materials and transportation regulations.
Indemnification Clause	The agreement includes provisions for indemnification, meaning the Owner Operator must protect the Carrier from any liabilities arising from their actions or negligence.
Insurance Obligations	The Owner Operator is required to carry various types of insurance, including cargo and personal injury. This insurance must meet minimum requirements set forth by federal regulations and be documented accordingly.
Assignment of Contract	The Owner Operator cannot assign the lease agreement to another party without obtaining written consent from the Carrier, ensuring control remains with the original parties.
Termination Clause	The Owner Operator Lease Agreement terminates any previous contracts between the parties related to transporting freight, emphasizing that this document supersedes earlier agreements.
Governing Law	This agreement is governed by the laws of the state specified in the document. Specific state laws apply depending on this designation, which affects how the terms are interpreted and enforced.

How to Use Owner Operator Lease Agreement

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.

Enter the date of the agreement on the blank line provided.
Fill in the name of the Carrier in the first blank space.
Complete the second blank space with the name of the Owner Operator.
Specify the period during which the Owner Operator agrees to deliver cargo, noting the agreed period on the designated line.
Provide the carrier’s name in the designated line for Carrier details at the end of the agreement.
Fill in the state name that governs the agreement in the required space.
Ensure the Owner Operator signs their name in the provided area.
Require the Carrier to sign their name in the indicated space.
Before submitting, verify that all necessary fields are complete and legible.
Keep a copy of the signed document for your records.

Key Facts about Owner Operator Lease Agreement

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.

Common mistakes

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.

Documents used along the form

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.

Bill of Lading: This document serves as a contract between the shipper and the carrier. It provides details about the freight being transported, including the type of goods and destination. The bill of lading acts as a receipt when the goods are delivered, confirming that the carrier has received the freight in good condition.
Insurance Certificates: These documents demonstrate that the Owner Operator has the necessary insurance coverage required for transporting goods. Insurance certificates assure both the Carrier and the Owner Operator are protected against potential liabilities arising from accidents, damage, or loss during transport.
Tariff Schedule: This document outlines the rates, rules, and charges associated with transportation services. A tariff schedule helps clarify compensation agreed upon in the Owner Operator Lease Agreement and provides transparency regarding costs.
Inspection Reports: These reports document the condition of the equipment and goods before loading. Inspection reports serve to protect both parties by providing evidence of the state of goods and any pre-existing damage, helping to mitigate disputes.
Receipts: Upon delivery, the Owner Operator is required to obtain receipts confirming that goods were delivered. These signed receipts provide proof of delivery and are essential for record-keeping and potential claims regarding lost or damaged items.
Permits and Licenses: The Owner Operator must have relevant permits and licenses to legally transport specific types of freight. These documents ensure compliance with federal and state regulations and are crucial for maintaining the operational legitimacy of the Owner Operator's business.
Subcontractor Agreements: If the Owner Operator chooses to engage subcontractors for any part of the transportation process, formal agreements must be put in place. These agreements clarify the responsibilities and liabilities of all parties involved to maintain accountability and compliance with the original contract.

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.

Similar forms

Independent Contractor Agreement: Like the Owner Operator Lease Agreement, this document outlines the relationship between the parties involved, specifically identifying the Owner Operator as an independent contractor. It details responsibilities, liabilities, and expectations associated with the contractor relationship.
Freight Bill of Lading: Similar to the Owner Operator Lease Agreement, a Freight Bill of Lading serves as a contract between the shipper and carrier. It details the goods being transported, terms of transportation, and serves as a receipt upon delivery.
Carrier Agreement: This document is akin to the Owner Operator Lease Agreement in that it sets forth the obligations and rights of the carrier and owner operator. It outlines the terms under which the transportation of goods will occur, including rates, responsibilities, and compliance with applicable laws.
Freight Service Contract: This contract parallels the Owner Operator Lease Agreement by defining the services provided by the owner operator to the carrier. It includes compensation details, service standards, and the necessary legal requirements, focusing on the obligations and rights of both parties.

Dos and Don'ts

When filling out the Owner Operator Lease Agreement form, attention to detail is crucial. Here are ten important things to remember:

Complete all sections: Ensure every part of the form is filled out accurately.
Provide legal names: Use the full legal names of both parties to avoid confusion.
Double-check dates: Verify that all dates are correct and complete.
Sign where required: Both parties must sign the agreement for it to be valid.
Keep copies: Retain a copy of the signed agreement for your records.

Equally important are the things to avoid:

Don’t omit information: Leaving out any required information can lead to issues later.
Avoid vague terms: Be specific to prevent misinterpretations.
Don’t modify without consent: Any changes must be agreed upon in writing by both parties.
Avoid informal language: Use professional language to maintain the seriousness of the agreement.
Don’t forget compliance: Ensure compliance with applicable laws and regulations throughout.

By following these guidelines, you can complete the lease agreement effectively and ensure a smoother process for both parties involved.

Misconceptions

Misconceptions about the Owner Operator Lease Agreement can lead to confusion for both parties involved. Here are five common misunderstandings:

Owner Operators are Employees of the Carrier. Many believe that signing this agreement makes the Owner Operator an employee of the Carrier. In reality, the agreement clarifies that the Owner Operator is an independent contractor, responsible for employing their own drivers.
The Carrier is Responsible for Liability. Some people think that the Carrier will handle all liabilities related to transportation. However, the agreement explicitly states that the Owner Operator assumes significant responsibility for liabilities, including those arising from hazardous materials or any damages during transportation.
Oral Agreements Can Modify the Contract. There is a misconception that parties can change the terms of the Owner Operator Lease Agreement verbally. The contract specifies that any modifications must be in writing and signed by both parties, ensuring clarity and legal standing.
The Owner Operator Has Unlimited Access to Use Carrier’s Name. Some Owner Operators assume they can use the Carrier's name for marketing or operational purposes freely. In fact, consent from the Carrier is required before such use is permitted.
Insurance Requirements Are Optional. Many Owner Operators believe that meeting insurance requirements is not mandatory. This is not true. The contract clearly states that Owner Operators must carry specific types of insurance to protect both parties involved in the agreement.

Key takeaways

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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