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The Owner Operator Lease Agreement form is a crucial document in the transportation industry, establishing the terms and conditions between a Carrier and an Owner Operator. This agreement outlines the responsibilities of both parties, ensuring compliance with federal, state, and local regulations. It emphasizes the Owner Operator's obligation to secure necessary permits and maintain the required insurance coverage. Additionally, it details the process for transporting goods, including the need for proper documentation upon receipt and the handling of hazardous materials. The agreement also specifies the liability and indemnification responsibilities of the Owner Operator, protecting the Carrier from potential legal repercussions. Furthermore, it includes provisions on compensation, confidentiality, and the conditions under which the contract can be modified or terminated. By clearly delineating the expectations and responsibilities of each party, the Owner Operator Lease Agreement plays a vital role in facilitating smooth and lawful transportation operations.

Common mistakes

  1. Incomplete Information: Failing to fill out all required fields can lead to delays or disputes. Ensure that all blanks, such as names and dates, are completed accurately.

  2. Ignoring Legal Requirements: Not securing necessary permits or licenses can have serious consequences. Owner Operators must comply with federal, state, and local regulations.

  3. Misunderstanding Liability: Many overlook their liability responsibilities. It is crucial to understand that the Owner Operator is responsible for any damages or losses during transportation.

  4. Neglecting Insurance Obligations: Failing to provide proof of adequate insurance coverage can jeopardize the agreement. Owner Operators must ensure compliance with insurance requirements outlined in the contract.

  5. Not Retaining Receipts: Owner Operators must keep signed receipts for at least two years. This documentation is essential for proving delivery and condition of goods.

  6. Overlooking Confidentiality Clauses: Disclosing terms of the agreement or business information without consent can result in legal repercussions. Understanding confidentiality obligations is vital.

Example - 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 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

_______________________________

NAME

More About Owner Operator Lease Agreement

What is the purpose of the Owner Operator Lease Agreement?

The Owner Operator Lease Agreement serves as a formal contract between a Carrier and an Owner Operator. This document outlines the terms and conditions under which the Owner Operator will transport goods on behalf of the Carrier. It ensures that both parties understand their responsibilities, including compliance with legal requirements and the handling of cargo. The agreement aims to facilitate smooth operations and protect the interests of both parties involved in the transportation of freight.

What are the key responsibilities of the Owner Operator?

The Owner Operator has several critical responsibilities outlined in the agreement. First, they must secure all necessary permits and licenses for their operations and comply with applicable laws and regulations. They are also responsible for delivering freight as agreed and must provide written receipts upon receiving goods from the Carrier. Additionally, the Owner Operator assumes liability for the safe transportation of all goods and must maintain appropriate insurance coverage. This includes cargo, personal injury, and equipment insurance, ensuring they can cover any losses or damages that may occur during transportation.

How is compensation structured in the Owner Operator Lease Agreement?

Compensation for the Owner Operator's services is based on the rates and charges specified in an attached rate schedule. The Carrier agrees to pay the Owner Operator within sixty days of receiving an invoice. This payment structure ensures that the Owner Operator is fairly compensated for their work while also establishing clear expectations regarding payment timelines. Both parties must agree on the rates and any changes to ensure transparency and mutual understanding.

Can the Owner Operator assign their responsibilities to another party?

No, the Owner Operator cannot assign their responsibilities or rights under the agreement to another party without obtaining written consent from the Carrier. This clause is essential to maintain the integrity of the contract and ensure that the Carrier retains control over who is responsible for transporting their goods. It helps prevent any potential issues that could arise from having unapproved parties involved in the transportation process.

What happens if the Owner Operator fails to comply with the terms of the agreement?

If the Owner Operator fails to comply with the terms of the agreement, they may be held liable for any resulting penalties, fines, or damages. The agreement includes indemnification clauses, meaning the Owner Operator must defend and protect the Carrier from any claims arising from their failure to meet legal or contractual obligations. This provision emphasizes the importance of compliance and accountability, ensuring that both parties are protected in the event of any issues that may arise during transportation.

Key takeaways

Filling out and utilizing the Owner Operator Lease Agreement form is a crucial step for both the Carrier and the Owner Operator. Below are key takeaways to consider:

  • Understand Responsibilities: The Owner Operator must secure all necessary permits and licenses for transporting goods, ensuring compliance with local, state, and federal regulations.
  • Delivery Obligations: The Owner Operator agrees to transport a minimum amount of freight as specified in the agreement, emphasizing the importance of availability and timely loading.
  • Liability for Goods: The Owner Operator assumes full responsibility for the safe transport of goods, including any loss or damage that may occur while in their custody.
  • Insurance Requirements: Adequate insurance coverage is essential. The Owner Operator must comply with the insurance standards set by the Federal Motor Carrier Safety Administration and the UIIA.
  • Confidentiality Clause: The terms of the agreement and any proprietary information about the Carrier’s business must remain confidential, requiring written consent for any disclosures.
  • Written Modifications: Any changes to the agreement must be made in writing and signed by both parties to ensure clarity and mutual consent.
  • Effective Date: The agreement becomes effective upon the signatures of both the Carrier and the Owner Operator, marking the formal start of the contractual relationship.

Form Attributes

Fact Name Fact Description
Parties Involved The agreement is between the Carrier and the Owner Operator, both of whom are identified at the beginning of the document.
Purpose This agreement facilitates the transportation of general freights by the Owner Operator on behalf of the Carrier.
General Provisions The Owner Operator must secure necessary permits and comply with all applicable laws, including federal, state, and local regulations.
Liability for Cargo The Owner Operator assumes full liability for the safe transportation of all goods entrusted to them, including any loss or damage.
Insurance Requirements The Owner Operator must maintain insurance coverage that meets or exceeds the minimum requirements set by the Federal Motor Carrier Safety Administration.
Confidentiality Clause Owner Operators are required to keep the terms of the agreement and any Carrier business information confidential.
Assignment Restrictions The Owner Operator cannot assign the contract to another party without the Carrier's written consent.
Governing Law The agreement is governed by the laws of the state specified by the parties, ensuring compliance with local regulations.
Termination Clause This agreement terminates all previous contracts related to the transportation of Freight All Kinds (FAK) between the parties.

Dos and Don'ts

Things to Do:

  • Read the entire Owner Operator Lease Agreement carefully before filling it out.
  • Provide accurate information in all required fields, including dates and names.
  • Ensure all permits and licenses are current and submit copies when requested.
  • Review the terms regarding insurance coverage and confirm compliance.
  • Keep a copy of the completed agreement for your records.

Things Not to Do:

  • Do not leave any fields blank unless specified.
  • Avoid using incorrect or outdated information.
  • Do not sign the agreement without fully understanding its terms.
  • Do not ignore any requests for documentation or evidence of compliance.
  • Refrain from altering any part of the agreement without written consent from both parties.