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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 serves as a framework for the transportation of general freights, ensuring that both parties understand their rights and responsibilities. Key elements of the form include general provisions that require the Owner Operator to secure necessary permits and comply with applicable laws, including regulations related to hazardous materials. The agreement specifies the obligations of the Owner Operator to deliver a minimum amount of freight and to maintain proper insurance coverage. Additionally, it addresses liability issues, emphasizing that the Owner Operator is responsible for the care and custody of the goods during transportation. The form also highlights the importance of confidentiality and provides guidelines for modifications, notices, and applicable law. By establishing clear terms, the Owner Operator Lease Agreement fosters a professional relationship that benefits both parties involved in the transportation process.
Preview - Owner Operator Lease Agreement Form
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
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
_______________________________
NAME
Document Specifics
| Fact Name | Fact Description |
|---|---|
| Parties Involved | The agreement is between a Carrier and an Owner Operator, each designated by their respective names. |
| General Provisions | Owner Operator must secure necessary permits and comply with all applicable laws, including federal, state, and local regulations. |
| Independent Contractor Status | Owner Operator is recognized as an independent contractor, meaning they are responsible for their own employees and operations. |
| Liability for Compliance | Owner Operator must defend and indemnify the Carrier against any liabilities arising from non-compliance with laws and regulations. |
| Insurance Requirements | Owner Operator is required to maintain specific insurance coverage, including cargo and personal injury insurance, as per federal and state regulations. |
| Receipts of Goods | Owner Operator must provide written receipts for goods received from Carrier, serving as prima facie evidence of receipt in good order. |
| Confidentiality Clause | Owner Operator is obligated to keep the terms of the agreement and Carrier's business information confidential, requiring written consent for disclosure. |
| Termination of Previous Contracts | This agreement terminates all prior contracts between the parties related to the transportation of freight. |
| Applicable Law | The agreement is governed by the laws of the state specified in the document, ensuring compliance with local legal standards. |
Owner Operator Lease Agreement: Usage Instruction
Filling out the Owner Operator Lease Agreement form is an important step in establishing a professional relationship between the Carrier and the Owner Operator. This agreement outlines the responsibilities and expectations of both parties, ensuring that the transportation of goods is conducted smoothly and legally. To complete the form accurately, follow these steps carefully.
- Begin by entering the date at the top of the form, where it states "this ____ day of ______________ 20___".
- In the first blank space, write the name of the Carrier.
- In the second blank space, write the name of the Owner Operator.
- Fill in the period during which the Owner Operator agrees to deliver cargo, where it mentions "not less than the following amount: one shipment of freight of all kinds (FAK) during a period of ____________________".
- Ensure that the Owner Operator provides evidence of all necessary permits and licenses as required by law, and be prepared to furnish this evidence to the Carrier upon request.
- Review the terms regarding liability and insurance. Make sure to understand the responsibilities associated with transporting goods, especially hazardous materials.
- Check the section on compensation to confirm the rates and payment terms are clearly stated and understood. Ensure that you know when you will be compensated for services rendered.
- In the confidentiality section, acknowledge the importance of keeping the terms of the agreement and any business information confidential.
- Provide the necessary signatures at the bottom of the form. The Owner Operator should sign in the designated space and include their printed name. The Carrier should also sign and print their name.
- Finally, keep a copy of the completed agreement for your records.
Learn More on Owner Operator Lease Agreement
What is an Owner Operator Lease Agreement?
An Owner Operator Lease Agreement is a contract between a carrier and an owner operator. This agreement outlines the terms under which the owner operator will transport goods for the carrier. It includes responsibilities, compensation, and legal obligations for both parties. The goal is to ensure clear communication and mutual understanding regarding the transportation of freight.
What are the key responsibilities of the Owner Operator?
The Owner Operator has several important responsibilities, including:
- Securing all necessary permits and licenses to operate legally.
- Transporting goods in accordance with applicable laws and regulations.
- Providing written receipts for all goods received from the carrier.
- Maintaining insurance coverage as required by law and the terms of the agreement.
- Indemnifying the carrier against any liabilities arising from their operations.
These responsibilities ensure that the owner operator operates within legal guidelines and protects both parties from potential liabilities.
How is compensation determined in the agreement?
Compensation for the Owner Operator is based on the rates and charges specified in the attached rate schedule. The carrier agrees to pay the owner operator for services rendered within sixty days of receiving an invoice. This structure provides clarity on payment timelines and expectations for both parties.
Can the Owner Operator assign the agreement to someone else?
No, the Owner Operator cannot assign the agreement to another party without the written consent of the carrier. This provision ensures that the carrier maintains control over who is responsible for transporting their goods, thereby protecting their interests.
Common mistakes
Filling out the Owner Operator Lease Agreement form can be a straightforward task, but many people inadvertently make mistakes that can have significant consequences. One common error is failing to provide accurate information about the parties involved. The agreement requires specific details such as names and addresses of both the Carrier and the Owner Operator. If this information is incorrect or incomplete, it can lead to confusion and disputes later on.
Another frequent mistake is neglecting to secure the necessary permits and licenses. The Owner Operator must ensure they have all required documentation to operate legally. Without these permits, the agreement may become void, and the Owner Operator could face penalties. It’s crucial to double-check that all licenses are up to date and that any necessary certifications are included with the agreement.
Many individuals also overlook the importance of understanding the terms outlined in the agreement. This includes the responsibilities regarding cargo care and custody. Owner Operators must recognize that they assume liability for the goods transported. If they do not fully grasp these responsibilities, they may find themselves liable for damages or losses that occur during transportation.
Additionally, failing to comply with insurance requirements is a critical mistake. The Owner Operator must carry adequate insurance coverage, as specified in the agreement. Skipping this step can result in financial loss and legal troubles if an incident occurs while transporting goods. Always review the insurance clauses to ensure compliance with all requirements.
Lastly, many people forget to sign and date the agreement properly. This may seem minor, but without the proper signatures, the contract is not legally binding. Both parties must sign the document to validate the terms. Remember, a signed agreement protects both the Carrier and the Owner Operator, ensuring that everyone is on the same page regarding their obligations and expectations.
Documents used along the form
Alongside the Owner Operator Lease Agreement, several other documents are commonly utilized to ensure clarity and compliance in the transportation process. Each of these documents serves a specific purpose and helps facilitate the relationship between the Carrier and the Owner Operator.
- Bill of Lading: This document serves as a receipt for the goods being transported. It outlines the details of the shipment, including the type of goods, quantity, and destination. The bill of lading is crucial for establishing ownership and liability during transit.
- Insurance Certificate: This certificate provides proof that the Owner Operator has the necessary insurance coverage as required by law and the terms of the lease agreement. It protects both parties from potential liabilities arising from accidents or damages during transportation.
- Rate Confirmation: This document confirms the agreed-upon rates for the transportation services. It includes details such as the specific charges, payment terms, and any additional fees. This ensures transparency regarding compensation for services rendered.
- Permits and Licenses: Owner Operators must secure all necessary permits and licenses to operate legally. This documentation demonstrates compliance with federal, state, and local regulations, ensuring that the Owner Operator is authorized to transport specific types of goods.
- Delivery Receipts: Upon delivery of goods, the Owner Operator must obtain signed receipts from the consignee. These receipts confirm that the goods were received in good condition and are essential for record-keeping and accountability.
These documents work together to create a comprehensive framework for the transportation agreement, ensuring that both parties understand their rights and responsibilities. Proper management of these forms is vital for maintaining compliance and fostering a successful working relationship.
Similar forms
The Owner Operator Lease Agreement shares similarities with the Freight Broker Agreement. Both documents outline the relationship between parties involved in the transportation of goods. In a Freight Broker Agreement, a broker arranges for the transportation of freight on behalf of shippers, while the Owner Operator Lease Agreement establishes a direct contractual relationship between the carrier and the owner-operator. Each agreement details responsibilities, compensation, and compliance with regulations, ensuring that all parties understand their roles and obligations in the transportation process.
Another document that resembles the Owner Operator Lease Agreement is the Bill of Lading. This document serves as a receipt for goods and a contract for transportation. Like the Owner Operator Lease Agreement, it specifies the responsibilities of the parties involved, including the handling of goods and liability for loss or damage. The Bill of Lading also ensures that the terms of transportation are clear and legally binding, which is a fundamental aspect shared with the Owner Operator Lease Agreement.
The Independent Contractor Agreement is also similar to the Owner Operator Lease Agreement. Both documents define the relationship between a contractor and a hiring party, emphasizing that the contractor operates independently. In the context of the Owner Operator Lease Agreement, the owner-operator is recognized as an independent contractor, which affects liability, tax responsibilities, and operational control. This distinction is crucial in both agreements, as it delineates the boundaries of responsibility and authority.
A similar document is the Equipment Lease Agreement, which outlines the terms under which one party leases equipment to another. In the context of transportation, an Equipment Lease Agreement may be used to lease trucks or trailers. Like the Owner Operator Lease Agreement, it includes provisions about maintenance, liability, and compliance with regulations. Both agreements aim to protect the interests of the parties involved while ensuring that operational standards are met.
The Service Agreement also bears resemblance to the Owner Operator Lease Agreement. This type of agreement outlines the terms and conditions under which services are provided. In the case of the Owner Operator Lease Agreement, the service is the transportation of goods. Both documents typically include sections on payment, performance expectations, and liability, ensuring that all parties are aware of their rights and obligations throughout the duration of the contract.
Another document that aligns closely with the Owner Operator Lease Agreement is the Carrier Agreement. This document specifically governs the relationship between a freight carrier and the shipper. Similar to the Owner Operator Lease Agreement, it establishes terms for transportation, including rates, responsibilities, and compliance with applicable laws. The Carrier Agreement focuses on the logistics of moving goods, while the Owner Operator Lease Agreement emphasizes the operational relationship between the owner-operator and the carrier.
Lastly, the Non-Disclosure Agreement (NDA) shares some similarities with the Owner Operator Lease Agreement, particularly in the confidentiality provisions. Both documents often include clauses that protect sensitive information shared between parties. In the Owner Operator Lease Agreement, the owner-operator agrees to keep the carrier's business information confidential, just as an NDA would require one party to protect the other party's proprietary information. This aspect underscores the importance of trust and confidentiality in business relationships.
Dos and Don'ts
When filling out the Owner Operator Lease Agreement form, it’s essential to approach the task with care. Here’s a handy list of things you should and shouldn’t do to ensure a smooth process:
- Do read the entire agreement carefully before filling it out. Understanding the terms will help you avoid mistakes.
- Do provide accurate and complete information. Double-check names, dates, and any required licenses or permits.
- Do keep a copy of the completed form for your records. This can be helpful for future reference.
- Do ask questions if something is unclear. Clarifying any doubts can prevent misunderstandings later on.
- Do ensure both parties sign and date the agreement. An unsigned document may not hold up legally.
- Don't rush through the form. Taking your time can save you from costly errors.
- Don't leave any sections blank unless instructed. Incomplete forms may be rejected or cause delays.
- Don't ignore the importance of compliance. Make sure you understand and adhere to all relevant laws and regulations.
- Don't assume verbal agreements are sufficient. Everything should be documented in writing.
- Don't forget to review the terms after filling out the form. A final check can catch mistakes before submission.
Misconceptions
Misconceptions about the Owner Operator Lease Agreement can lead to misunderstandings and potential legal issues. Here are seven common misconceptions:
- 1. The Owner Operator is an employee of the Carrier. Many believe that the Owner Operator works as an employee of the Carrier. In reality, the Owner Operator is classified as an independent contractor, responsible for their own operations and employees.
- 2. The Owner Operator does not need to secure permits. Some assume that permits and licenses are unnecessary. However, the Owner Operator must secure all required permits and comply with applicable laws.
- 3. Liability is solely the Carrier's responsibility. This is a misconception. The Owner Operator assumes significant liability for the goods they transport and must indemnify the Carrier against various claims.
- 4. The terms of the agreement can be changed verbally. Many think they can alter the agreement through verbal discussions. Changes must be made in writing and signed by both parties to be valid.
- 5. Insurance requirements are optional. Some believe that insurance is not mandatory. In fact, the Owner Operator must carry specific insurance to comply with federal and state regulations.
- 6. The Carrier's name can be displayed on Owner Operator vehicles without permission. It is a common mistake to think that displaying the Carrier's name is allowed. Written consent from the Carrier is required for any such display.
- 7. All shipments have the same liability terms. Many assume that liability terms apply uniformly to all shipments. However, limitations on liability can vary and must be explicitly agreed upon in writing.
Understanding these misconceptions is crucial for both parties involved in the Owner Operator Lease Agreement. Clarity can prevent disputes and ensure smoother operations.
Key takeaways
Understand Your Responsibilities: As an Owner Operator, you must secure all necessary permits and licenses for your operations. Compliance with federal, state, and local regulations is essential, and you should be prepared to provide evidence of this compliance when requested.
Clarify the Relationship: This agreement establishes that you are an independent contractor, not an employee of the Carrier. It is crucial to maintain this distinction, especially when hiring subcontractors.
Document Everything: You are required to provide written receipts for all goods received and delivered. Retaining these documents for at least two years is vital for compliance and record-keeping.
Insurance Requirements: Ensure that you have the necessary insurance coverage, including cargo and liability insurance. Compliance with the Federal Motor Carrier Safety Administration's insurance requirements is mandatory.
Confidentiality is Key: The terms of this agreement and any information regarding the Carrier’s business must be treated as confidential. Disclosure to third parties requires prior written consent from the Carrier.