The Owner Operator Lease Agreement is a contract between a carrier and an owner operator, outlining the terms for transporting freight. This document ensures that both parties understand their responsibilities, including compliance with laws and regulations, liability for goods, and insurance requirements. To facilitate your operations smoothly, fill out the form by clicking the button below.
The Owner Operator Lease Agreement form is a crucial document that outlines the relationship between a Carrier and an Owner Operator in the transportation industry. This agreement is designed to facilitate the transportation of general freights by motor vehicle, ensuring that both parties understand their rights and responsibilities. Key aspects of the form include general provisions, which require the Owner Operator to secure necessary permits and comply with applicable laws. The agreement specifies the obligations of the Owner Operator regarding the delivery of freight, the care and custody of goods, and the insurance coverage required for operations. Additionally, it addresses the confidentiality of the agreement's terms and the process for providing written notices. The document also stipulates the payment terms and conditions, ensuring that the Owner Operator receives compensation for services rendered. Finally, it emphasizes the independent contractor status of the Owner Operator and outlines the conditions under which the agreement can be modified or terminated. By clearly defining these elements, the Owner Operator Lease Agreement aims to foster a smooth and efficient working relationship between the parties involved.
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
Completing the Owner Operator Lease Agreement form is a crucial step in establishing a professional relationship between the Carrier and the Owner Operator. It's essential to fill out this document accurately to ensure that both parties understand their rights and responsibilities. Follow these steps carefully to complete the form.
Once the form is filled out and signed, both parties should retain copies for their records. This agreement will serve as the foundation for the working relationship, outlining the responsibilities and expectations for both the Carrier and the Owner Operator. Ensure that all details are accurate and complete before finalizing the document.
An Owner Operator Lease Agreement is a contract between a Carrier and an Owner Operator. This agreement outlines the terms and conditions under which the Owner Operator will transport goods for the Carrier. It covers various aspects such as responsibilities, liabilities, and compensation, ensuring both parties understand their obligations and rights throughout the transportation process.
An Owner Operator is an individual or business that owns their own truck and operates it for the purpose of transporting freight. They work as independent contractors, providing transportation services to a Carrier. The Owner Operator is responsible for securing necessary permits and complying with relevant regulations while maintaining an independent status from the Carrier.
The Owner Operator has several important responsibilities, including:
If the Owner Operator engages subcontractors, they remain responsible for ensuring compliance with the terms of the agreement. The relationship between the Carrier and the Owner Operator does not change, and the Owner Operator must defend and indemnify the Carrier against any claims arising from the subcontractor's work.
Compensation for the Owner Operator is based on the rates and charges outlined in the attached rate schedule. The Carrier agrees to pay the Owner Operator within sixty days of receiving an invoice. This ensures that the Owner Operator is compensated fairly for their services in a timely manner.
The Owner Operator must carry various types of insurance, including cargo, personal injury, and general liability insurance. This coverage must meet or exceed the minimum requirements set by the Federal Motor Carrier Safety Administration and the Uniform Intermodal Interchange Agreement. Additionally, the Owner Operator must provide proof of insurance to the Carrier and ensure that the Carrier is named as an additional insured party.
No, the Owner Operator cannot assign the contract to another party without obtaining written consent from the Carrier. This ensures that the Carrier maintains control over who is responsible for transporting their goods and upholding the terms of the agreement.
The confidentiality clause requires the Owner Operator to keep the terms of the agreement and any information related to the Carrier's business confidential. This includes details about suppliers, products, and customers. The Owner Operator must obtain written consent from the Carrier before disclosing any such information to third parties.
Incomplete Information: Failing to fill in all required fields, such as names, dates, and signatures, can lead to disputes or the agreement being considered invalid.
Neglecting Permits and Licenses: Not providing evidence of necessary permits and licenses can result in legal issues and penalties. Ensure all required documentation is included.
Ignoring Insurance Requirements: Skipping over the insurance section or not providing proof of adequate coverage can expose both parties to liability. Verify that all insurance requirements are met.
Misunderstanding Responsibilities: Not clearly understanding the obligations related to cargo care and custody can lead to liability for damages. Read this section carefully.
Not Keeping Records: Failing to retain signed receipts for deliveries can complicate claims and disputes. Maintain records for at least two years as specified.
Overlooking Confidentiality: Disclosing terms of the agreement or business information without consent can result in legal consequences. Always keep such information confidential.
When entering into an Owner Operator Lease Agreement, several additional documents often accompany it to ensure clarity and compliance in the transportation business. Each of these documents plays a crucial role in defining the responsibilities, liabilities, and operational procedures for both parties involved. Understanding these documents can help streamline operations and mitigate potential disputes.
Incorporating these documents alongside the Owner Operator Lease Agreement can create a comprehensive framework for successful transportation operations. By understanding the purpose and importance of each document, both carriers and owner operators can navigate their partnership with greater confidence and clarity.
The Freight Transportation Agreement is similar to the Owner Operator Lease Agreement as it outlines the terms under which goods are transported. This document typically details the responsibilities of both the carrier and the shipper, including payment terms, liability for loss or damage, and compliance with legal regulations. Like the Owner Operator Lease Agreement, it emphasizes the importance of adhering to local, state, and federal laws governing transportation. Both agreements require clear communication regarding the conditions of the shipment and the responsibilities of each party involved.
The Independent Contractor Agreement shares similarities with the Owner Operator Lease Agreement in that it defines the relationship between the contractor and the client. This document specifies the rights and obligations of both parties, including payment terms, scope of work, and liability clauses. Both agreements establish that the contractor operates independently and is responsible for their own employees and subcontractors. Additionally, they both include indemnification clauses to protect each party from potential legal claims arising from their respective actions.
The Bill of Lading serves a function akin to the Owner Operator Lease Agreement by acting as a contract between the shipper and the carrier. It provides essential details about the shipment, including the type and quantity of goods being transported, as well as the terms of transportation. Like the Owner Operator Lease Agreement, it serves as a receipt for the goods and outlines the responsibilities of the parties involved. In the event of a dispute, both documents can be referenced to clarify the terms agreed upon by the parties.
The Equipment Lease Agreement is comparable to the Owner Operator Lease Agreement in that it governs the terms under which equipment is leased for transportation purposes. This document outlines the responsibilities of the lessee, including maintenance and insurance obligations, similar to the requirements placed on the Owner Operator. Both agreements emphasize the importance of compliance with applicable laws and regulations, ensuring that all parties understand their roles in the operation of the leased equipment.
Lastly, the Service Agreement bears similarities to the Owner Operator Lease Agreement as it outlines the terms of service between two parties. This document typically includes provisions regarding payment, service delivery, and confidentiality. Like the Owner Operator Lease Agreement, it establishes the expectations of both parties and includes clauses that address liability and indemnification. Both agreements aim to create a clear understanding of the terms under which services are provided, ensuring that all parties are aware of their rights and responsibilities.
When filling out the Owner Operator Lease Agreement form, it’s crucial to be thorough and accurate. Here’s a list of things to do and avoid:
1. Owner Operators are employees of the Carrier. This is a common misunderstanding. Owner Operators are independent contractors. They maintain their own business operations and are responsible for their own employees.
2. The Owner Operator Lease Agreement is a standard form with no room for negotiation. While there are standard elements, terms can often be negotiated between the Owner Operator and the Carrier to better suit both parties.
3. Owner Operators do not need to have insurance. This is incorrect. Owner Operators must carry appropriate insurance as specified in the agreement, including cargo and liability insurance.
4. The Carrier is responsible for all liabilities during transportation. In fact, the Owner Operator assumes significant liability for the goods they transport. They must also indemnify the Carrier against certain claims.
5. Owner Operators can transport any type of cargo without restrictions. This is misleading. Owner Operators must have the necessary permits and comply with regulations for specific types of cargo, especially hazardous materials.
6. The Owner Operator can assign the lease agreement to anyone. This is not true. The agreement cannot be assigned without written consent from the Carrier, ensuring that both parties maintain control over the contract.
7. The Owner Operator is not required to keep records of deliveries. On the contrary, Owner Operators must maintain signed receipts for deliveries for at least two years, which are subject to inspection.
8. Modifications to the agreement can be made verbally. This is a misconception. Any changes must be made in writing and signed by both parties to be valid.
9. The Owner Operator has no obligation to notify the Carrier of regulatory changes. This is incorrect. Owner Operators must inform the Carrier of any changes to their operating authority or permits promptly.
10. Confidentiality clauses are optional. In reality, the Owner Operator is required to keep the terms of the agreement and any sensitive information about the Carrier confidential unless written consent is obtained.
Key Takeaways for Using the Owner Operator Lease Agreement Form:
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