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The Owner Operator Lease Agreement is a critical document that outlines the relationship between a carrier and an owner operator in the transportation industry. This agreement establishes the terms under which the owner operator will transport goods for the carrier, detailing responsibilities and expectations for both parties. Key components include general provisions that require the owner operator to secure necessary permits and comply with all applicable laws. The agreement specifies the quantity of freight to be transported, the handling of receipts, and the care of merchandise, emphasizing the owner operator's liability for any loss or damage. Insurance requirements are also outlined, ensuring that both parties are protected against potential risks. Confidentiality clauses safeguard sensitive business information, while provisions for termination and modifications ensure clarity in the contractual relationship. Overall, the Owner Operator Lease Agreement serves as a foundational document that governs the operational and legal aspects of freight transportation between the two parties.
Key takeaways
When filling out and using the Owner Operator Lease Agreement form, it's essential to keep the following key takeaways in mind:
- Permits and Compliance: Owner Operators must secure all necessary permits and comply with applicable laws and regulations. This includes providing evidence of compliance when requested by the Carrier.
- Independent Contractor Status: The Owner Operator is classified as an independent contractor, meaning they are responsible for their employees and subcontractors. This relationship must be clearly understood to avoid any legal misunderstandings.
- Insurance Requirements: Owner Operators need to maintain proper insurance coverage, including cargo and liability insurance. They must provide proof of this insurance to the Carrier as part of the agreement.
- Receipt of Goods: Upon receiving goods, the Owner Operator must provide a written receipt to the Carrier. This receipt serves as proof of receipt and must be retained for at least two years.
- Confidentiality: The terms of the agreement and any related information about the Carrier’s business must remain confidential. Disclosure to third parties requires written consent from the Carrier.
Dos and Don'ts
When filling out the Owner Operator Lease Agreement form, it is important to follow certain guidelines to ensure accuracy and compliance. Here are eight things to consider:
- Do read the entire agreement carefully before filling it out.
- Do provide accurate and complete information in all required fields.
- Do keep a copy of the completed agreement for your records.
- Do ensure that all necessary permits and licenses are current and valid.
- Don't leave any sections blank unless specifically instructed to do so.
- Don't sign the agreement without fully understanding all terms and conditions.
- Don't use outdated or incorrect information regarding your business or operations.
- Don't ignore the importance of confidentiality as outlined in the agreement.
Documents used along the form
When entering into an Owner Operator Lease Agreement, several other forms and documents may be needed to ensure compliance and clarity between the parties involved. Each of these documents serves a specific purpose and helps facilitate the transportation process. Below is a list of commonly used forms that accompany the Owner Operator Lease Agreement.
- 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.
- Freight Rate Agreement: This document specifies the rates and charges for transporting goods. It provides clarity on payment terms and conditions, ensuring that both the carrier and owner operator understand the financial aspects of their arrangement.
- Insurance Certificate: An insurance certificate demonstrates that the owner operator has the necessary insurance coverage as required by law and the terms of the lease agreement. This document protects both parties in the event of an accident or loss during transportation.
- Driver Qualification File: This file contains all relevant information about the driver, including their qualifications, training, and driving record. It is essential for compliance with federal and state regulations regarding driver safety and competency.
- Equipment Lease Agreement: If the owner operator is leasing equipment, this document outlines the terms of the lease, including maintenance responsibilities and payment terms. It clarifies the relationship between the owner operator and the equipment provider.
- Hazardous Materials Certification: When transporting hazardous materials, this certification is required to ensure compliance with safety regulations. It confirms that the owner operator is trained and authorized to handle such materials safely.
- Trailer Bill of Sale - The Fast PDF Templates provide valuable resources for easily generating this essential document required for the sale of a trailer in New York, ensuring all necessary details are captured for compliance.
- Rate Confirmation Sheet: This document confirms the agreed-upon rates for specific shipments. It serves as a reference for both parties, helping to avoid disputes over pricing and ensuring transparency in the transaction.
- Subcontractor Agreement: If the owner operator engages subcontractors for transportation services, this agreement outlines the terms and conditions of that relationship. It clarifies responsibilities and liabilities, ensuring that all parties are on the same page.
- Compliance and Safety Policy: This document outlines the safety procedures and compliance measures that the owner operator must follow. It helps maintain safety standards and ensures adherence to regulatory requirements throughout the transportation process.
Utilizing these forms and documents alongside the Owner Operator Lease Agreement helps establish clear expectations and responsibilities. By ensuring that all necessary paperwork is in order, both the carrier and owner operator can foster a successful working relationship and navigate the complexities of the transportation industry more effectively.
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Things to Know About This Form
What is an Owner Operator Lease Agreement?
An Owner Operator Lease Agreement is a contract between a carrier and an owner operator. It outlines the terms and conditions under which the owner operator will transport goods for the carrier. This agreement includes details about responsibilities, liabilities, and compensation, ensuring both parties are clear on their roles and expectations in the transportation process.
What are the key responsibilities of the Owner Operator?
The Owner Operator has several important responsibilities, including:
- Securing all necessary permits, licenses, and approvals for transportation.
- Complying with federal, state, and local laws and regulations.
- Providing evidence of compliance to the Carrier upon request.
- Assuming liability for the safe transportation of goods and any damages that may occur.
- Indemnifying the Carrier against any claims resulting from their operations.
How is compensation determined in this agreement?
Compensation is based on the rates and charges outlined in a rate schedule attached to the agreement. The Carrier agrees to pay the Owner Operator within sixty days of receiving an invoice for services rendered. This ensures timely payment for the work completed by the Owner Operator.
Can the Owner Operator assign the agreement to another party?
No, the Owner Operator cannot assign the lease agreement to another party without the written consent of the Carrier. This provision helps maintain control over who is performing the transportation services and ensures that the Carrier is comfortable with the parties involved.
What happens if there is a loss or damage to the cargo?
The Owner Operator assumes liability for any loss or damage to the cargo while it is under their care. They are responsible for ensuring the goods are transported safely and must reimburse the Carrier for any goods lost or destroyed during their responsibility period. This highlights the importance of proper handling and care of the cargo.
Are there confidentiality requirements in the agreement?
Yes, the Owner Operator is required to treat the terms of the agreement and any information related to the Carrier's business as confidential. This means they cannot disclose any details about the Carrier's operations, suppliers, or customers without obtaining written consent from the Carrier. This protects sensitive business information and maintains trust between the parties.
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 | Details |
|---|---|
| Parties Involved | This agreement is between the Carrier and the Owner Operator, both of whom have specific roles in the transportation of goods. |
| General Provisions | The Owner Operator must secure necessary permits and comply with all applicable laws, ensuring safe and legal transportation. |
| Independent Contractor Status | The Owner Operator is classified as an independent contractor, maintaining responsibility for their own employees and subcontractors. |
| Liability Assumption | The Owner Operator assumes liability for any damages or losses that occur during transportation, including hazardous materials. |
| Insurance Requirements | Owner Operators must carry specific insurance coverage, including cargo and personal injury insurance, as per federal and state regulations. |
| Compensation Terms | Carrier agrees to pay the Owner Operator according to a rate schedule, with payments due within sixty days of invoice date. |
| Confidentiality Clause | Owner Operators must keep the terms of the agreement and Carrier’s business information confidential unless consent is provided. |
| Governing Law | This agreement is governed by the laws of the state specified in the contract, ensuring compliance with local regulations. |
How to Fill Out Owner Operator Lease Agreement
Filling out the Owner Operator Lease Agreement form is an important step in establishing a clear understanding between the Carrier and the Owner Operator. Follow these steps carefully to ensure that all necessary information is accurately provided.
- Begin by entering the date at the top of the form where it states "this ____ day of ______________ 20___."
- Fill in the name of the Carrier in the designated space after "between."
- Next, write the name of the Owner Operator in the space provided after the word "Owner Operator."
- In Section 1, General Provisions, complete the blank for the minimum amount of freight shipments to be delivered during the specified period.
- Review and ensure compliance with all applicable laws, rules, and regulations as outlined in the provisions.
- In Section 2, Receipts of Goods, confirm that you understand the requirements for providing written receipts upon receiving goods from the Carrier.
- In Section 3, Care and Custody of Merchandise, acknowledge your responsibility for the safe transportation of goods and any associated liability.
- In Section 4, Insurance, ensure you understand the insurance requirements and confirm that you will comply with them.
- Section 5 states that the contract cannot be assigned without written consent. Acknowledge this requirement.
- In Section 6, Compensation, Commodities, Territory, familiarize yourself with the rates and charges that will apply to your services.
- In Section 7, Confidentiality, agree to keep the terms of the agreement confidential.
- Complete Section 8 by noting the method for giving notices as required by the agreement.
- Finally, fill in the state law that will govern the agreement in Section 9.
- Both the Owner Operator and Carrier should sign and print their names at the bottom of the form.