The Owner Operator Lease Agreement is a crucial document that formalizes the relationship between a carrier and an owner operator in the transportation industry. It outlines the terms under which goods will be transported, ensuring both parties understand their rights and obligations. Understanding and properly completing this form is vital for a successful partnership, so take the next step by filling out the form below.
The Owner Operator Lease Agreement form is a critical document for those involved in the transportation industry, establishing the relationship between a carrier and an owner operator. This agreement outlines essential terms and conditions, ensuring that both parties understand their rights and responsibilities. At its core, the form details the operational guidelines, including the requirement for the owner operator to obtain necessary permits and adhere to applicable regulations. It specifies the types of cargo to be transported and emphasizes the owner operator's responsibility to maintain appropriate liability insurance coverage. Additionally, the form delineates payment terms, underscores confidentiality commitments, and addresses indemnification responsibilities, protecting both the carrier and owner operator from potential legal liabilities. By defining the independent contractor status of the owner operator and prohibiting the display of the carrier's name without written consent, the agreement serves to clearly establish the operational boundaries necessary for a successful partnership. Such clarity facilitates smooth operations and fosters mutual compliance with federal, state, and local laws throughout the duration of the contract.
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
It’s important to carefully fill out the Owner Operator Lease Agreement form to ensure clarity and avoid any potential misunderstandings between parties involved. Below are detailed steps to help you complete this form accurately. Take your time, and make sure to double-check your entries before finalizing the document.
After completing these steps, review the form for accuracy before submitting it. Proper completion of this form helps establish a clear agreement between the Carrier and the Owner Operator regarding terms of service, responsibilities, and expectations.
The Owner Operator Lease Agreement is a contract between a carrier and an owner-operator. This document outlines the terms under which the owner-operator will transport goods for the carrier. The agreement serves to clarify responsibilities, liabilities, and compensation for services rendered.
The parties involved are typically two entities: the Carrier and the Owner Operator. The Carrier is the company that requires transportation services, while the Owner Operator is the individual or company that owns the vehicle and provides those services.
The general provisions encompass several important aspects, including:
The Owner Operator assumes liability for loss or damage to goods entrusted to their care during transportation. This extends to any subcontractors they may hire for performance, maintaining the responsibility for compliance and safety regulations.
Owner Operators must maintain insurance coverage that complies with Federal Motor Carrier Safety Administration standards and the Uniform Intermodal Interchange Agreement (UIIA). Coverage typically includes cargo insurance, personal injury, and general liability to protect both the Owner Operator and the Carrier.
Modifications to the agreement must be made in writing and signed by both parties. Oral agreements or changes are not legally binding and can lead to misunderstandings.
In the event of disputes, both parties are encouraged to refer to the terms outlined in the Owner Operator Lease Agreement. Each party should adhere to the specified conflict resolution terms included in the agreement, which may include legal proceedings governed by applicable state laws.
Yes, the Owner Operator is obligated to keep the details of the agreement and any related business information confidential. Disclosure to third parties without prior written consent from the Carrier is prohibited.
Compensation for the Owner Operator's services is outlined in the agreement, typically conveyed through a rate schedule. The Carrier agrees to pay the Owner Operator within sixty days of receipt of an invoice, ensuring timely and proper financial transactions.
The agreement remains in effect for a term specified within the document. It confirms intention to supersede any prior contracts between the parties related to the transportation of goods, thus establishing a clear legal framework for that operation.
When filling out the Owner Operator Lease Agreement form, many individuals unknowingly make critical mistakes that can lead to significant problems. One common error occurs when superficial information is provided. Details like the carrier's and owner operator's names must be clear and accurate. Failing to double-check this essential information may result in unenforceable agreements or even disputes regarding the identity of the parties involved.
Another frequent mistake relates to inaccurate completion of the operational details. Sections concerning specific routes, types of cargo, and service frequency require precise answers. Omitting these specifics may create ambiguity, leaving both parties uncertain about expectations and responsibilities. A well-defined contract is vital for smooth operations.
Many forget to properly provide evidence of appropriate licenses and permits. This includes the Federal Motor Carrier Safety Administration certification, which serves as proof of authority for transporting certain types of goods. Without this documentation, an owner operator risks non-compliance, which can lead to penalties and operational disruptions.
A significant pitfall includes neglecting to adhere to the insurance requirements. It’s imperative for owner operators to ensure their insurance policies meet federal and state regulations. Failing to do this can leave them financially vulnerable in case of accidents or losses during transportation.
Finally, not paying attention to the confidentiality provisions can be a costly oversight. The agreement underscores the importance of handling sensitive information carefully. Disclosing confidential business operations or client details without consent can lead to legal repercussions and damage professional relationships.
The Owner Operator Lease Agreement is a crucial document for establishing the relationship between a carrier and an owner-operator. However, several other forms and documents complement this agreement and provide essential details and clarity regarding the transportation services. Below is a list of related documents commonly used alongside the Owner Operator Lease Agreement.
These documents are integral to ensuring clarity and legal compliance in the carrier-owner-operator relationship. Utilizing these forms collectively strengthens the operational framework for transportation services and minimizes potential disputes.
Independent Contractor Agreement: This document outlines the terms under which an independent contractor provides services for a client. Similar to the Owner Operator Lease Agreement, it defines the relationship between both parties while emphasizing that the contractor operates independently.
Freight Broker Agreement: This agreement details the relationship between a broker who arranges the transportation of goods and a carrier. Like the Owner Operator Lease Agreement, it establishes terms of service, liability, and compliance with regulations involving freight transportation.
Shipping Contract: Found in logistics, this contract lays out the conditions under which goods will be shipped. Similar to the Owner Operator Lease Agreement, it encompasses terms of receipt, delivery responsibilities, and liability for lost or damaged goods.
Transport Services Agreement: This document specifies the roles and responsibilities of parties involved in transporting goods. It shares common elements with the Owner Operator Lease Agreement, such as the obligations for securing necessary permits and insurance.
Subcontractor Agreement: This agreement governs the details of work provided by a subcontractor. It parallels the Owner Operator Lease Agreement by addressing issues of liability, indemnification, and compliance with applicable laws.
Bill of Lading: This document serves as a receipt for the goods being transported. It resembles the Owner Operator Lease Agreement by including terms around liability and conditions of transport, especially concerning the state and condition of the cargo.
Master Service Agreement: Often used in long-term contracts, this document establishes the framework for future work. Similar to the Owner Operator Lease Agreement, it defines service parameters, responsibilities, and compliance expectations for both parties.
When filling out the Owner Operator Lease Agreement form, consider the following guidelines:
Things to avoid:
Misconceptions about Owner Operator Lease Agreements are common and can lead to misunderstandings between the parties involved. Here are nine key misconceptions and the realities that accompany them:
Understanding these misconceptions helps foster a clearer relationship between Owner Operators and Carriers, leading to smoother operations and minimized conflicts.
Understanding the Owner Operator Lease Agreement form is essential for both carriers and owner operators. Here are key takeaways that highlight its importance:
This agreement lays the groundwork for a professional relationship. Each party should thoroughly read and understand the terms to ensure clarity and compliance.
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