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The Owner Operator Lease Agreement form is a crucial document for anyone involved in freight transportation. It establishes the terms between a Carrier and an Owner Operator, ensuring both parties understand their responsibilities and rights. Key components of the agreement include general provisions that outline the obligations of the Owner Operator, including the need for appropriate permits and compliance with various laws. The agreement specifies the type of cargo to be transported, the requirements for receipts of goods, and the care and custody the Owner Operator must provide. It also emphasizes the necessity of insurance, detailing the types required and ensuring adequate coverage is maintained. The form prohibits assignment of the agreement without consent and outlines compensation details, including payment terms tied to delivered services. Confidentiality clauses protect the business interests of the Carrier, while the agreement is governed by specific state laws. Each section is designed to create a solid foundation for a successful working relationship while highlighting the responsibilities of the Owner Operator in the transportation process.

Form Sample

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

⇩ PDF

Document Specifications

Fact Name Fact Description
Parties Involved The agreement is between the “Carrier” and the “Owner Operator.”
General Provisions The Owner Operator must secure necessary permits and comply with all applicable laws at federal, state, and local levels.
Liability Assignment The Owner Operator assumes liability for all goods during transportation and must provide adequate insurance coverage.
Termination of Prior Agreements This agreement replaces all previous contracts related to transportation between the parties.
Subcontractors The Owner Operator can engage subcontractors but remains solely responsible for compliance and obligations.
Confidentiality Requirement All terms and related business information must remain confidential unless consent is granted by the Carrier.
Governing Law The agreement shall be governed by the laws of the state specified in the form.

Steps to Filling Out Owner Operator Lease Agreement

Filling out the Owner Operator Lease Agreement form involves several steps to ensure that both the Carrier and Owner Operator clearly understand and agree to the terms outlined in the document. After completing the form, both parties will have a clear agreement on their responsibilities and obligations under the contract.

  1. Date Entry: Write the date in the space provided, formatted as "____ day of ______________ 20__."
  2. Carrier Information: Fill in the name of the Carrier in the designated area.
  3. Owner Operator Information: Enter the name of the Owner Operator in the corresponding space.
  4. Transport Requirements: Specify the quantity of freight shipments the Owner Operator agrees to deliver during the defined period.
  5. Permits and Licenses: Ensure all necessary permits, licenses, and approvals required for the work are secured and noted in the agreement.
  6. Receipt of Goods: Describe the process for receiving and acknowledging goods, including any additional documentation if needed.
  7. Care and Custody: Acknowledge responsibility for any damages or losses during transportation of goods.
  8. Insurance Requirements: Confirm that the Owner Operator meets the insurance requirements stated in the agreement.
  9. Confidentiality Clause: Agree not to disclose any confidential information related to the Carrier's business.
  10. Notices: Specify the address for sending formal notices between the parties.
  11. Applicable Law: Indicate the state law that applies to the agreement.
  12. Signature Section: Have both the Owner Operator and Carrier sign and print their names in the provided signature lines.

More About Owner Operator Lease Agreement

What is an Owner Operator Lease Agreement?

An Owner Operator Lease Agreement is a formal contract between a Carrier and an Owner Operator. This agreement outlines the terms and conditions under which the Owner Operator will transport goods for the Carrier. It details obligations, rights, and liabilities associated with the transportation of various types of freight, ensuring that both parties understand their roles and responsibilities throughout the process.

What are the primary responsibilities of the Owner Operator?

The Owner Operator is responsible for securing all necessary permits, licenses, and approvals for transporting goods. They must comply with federal, state, and local laws, providing the Carrier with evidence of compliance whenever requested. Additionally, the Owner Operator must ensure the safe and timely delivery of freight and maintain adequate insurance coverage as stipulated in the agreement.

How is liability addressed in the agreement?

Liability is a significant focus of the Owner Operator Lease Agreement. The Owner Operator accepts full responsibility for any loss or damage to goods while in their care. They are also required to indemnify the Carrier against any claims resulting from their actions or failures to comply with applicable laws. This means that if issues arise during transportation, the Owner Operator will defend and cover the Carrier from legal and financial repercussions.

Can the Owner Operator assign their rights under the agreement?

No, the Owner Operator cannot assign their rights or obligations under the Owner Operator Lease Agreement without receiving written consent from the Carrier. This provision is designed to maintain control over the terms of the agreement and ensure that the parties involved remain accountable.

What happens if modifications are needed to the agreement?

Any modifications or alterations to the Owner Operator Lease Agreement must be made in writing and signed by both the Carrier and the Owner Operator. This requirement protects both parties by ensuring that any changes are documented and agreed upon, reducing the chance of misunderstandings or disputes.

What should an Owner Operator do in case of an accident or incident involving hazardous materials?

The Owner Operator must follow strict protocols if an accident or incident occurs involving hazardous materials. They are responsible for compliance with all relevant federal, state, and local hazardous waste regulations. The Owner Operator must manage any cleanup efforts required from a release or spill and is liable for any related claims, expenses, or fines. Promptly notifying the Carrier of such incidents is also crucial for maintaining open communication and addressing legal responsibilities.

Common mistakes

  1. Incomplete Dates: Failing to provide a complete date at the beginning of the agreement is a common oversight. It's essential to fill in both the day and year to avoid any ambiguity about the agreement's effective date.

  2. Missing Names: Not listing the full names of both the Carrier and the Owner Operator can lead to confusion. Both parties should ensure that their legal names are correctly entered to validate the agreement.

  3. Neglecting Signatures: Some individuals forget to sign the agreement. Without signatures from both the Carrier and Owner Operator, the agreement may be considered unenforceable.

  4. Inaccurate Information: Providing incorrect details regarding permits, licenses, or insurance information can create liability issues. Each aspect of the document should be cross-checked for accuracy before submission.

  5. Omitting Terms: Leaving out specific terms relating to compensation, responsibilities, or routes can lead to disputes later on. All relevant terms should be clearly articulated and understood by both parties.

  6. Ignoring Confidentiality Clauses: Many individuals overlook the importance of confidentiality regarding the terms of the agreement. It is crucial to understand and adhere to the confidentiality obligations to protect sensitive information.

Documents used along the form

The Owner Operator Lease Agreement is a key document in the transportation industry. However, several other forms and documents often accompany it to provide clarity and structure to the business relationship between the Carrier and Owner Operator. Below is a list of additional documents commonly used in conjunction with the lease agreement.

  • Bill of Lading: A document that serves as a receipt for the freight and outlines the terms of transport. It details the parties involved and the specifics of the shipment.
  • Carrier Packet: A collection of documents that include various forms and agreements necessary for a carrier's operations. This can include insurance certificates and business licenses.
  • Insurance Certificate: A document that proves the Owner Operator has adequate insurance coverage as required for their operation, protecting against damages or losses.
  • Rate Confirmation Sheet: A document that outlines the agreed rates for transportation services. It serves as confirmation of the financial terms of the contract.
  • Freight Delivery Receipt: A record signed by the recipient of the freight, confirming the receipt of goods as per the bill of lading. It ensures accountability for delivered items.
  • Inspection Report: A document detailing the condition of the goods prior to transport. It is vital for documenting any pre-existing damage or concerns.
  • Driver Vehicle Inspection Report: A form completed by the Owner Operator, indicating the condition of the vehicle before departure. This helps ensure safety and compliance with regulations.
  • Confidentiality Agreement: A document that assures both parties will keep sensitive information private, protecting business interests and operational details.
  • Subcontractor Agreements: Contracts that outline the terms between the Owner Operator and any subcontractors they may hire. It clarifies responsibilities and expectations.

These documents help to streamline operations, ensure compliance with industry regulations, and protect the interests of both the Carrier and the Owner Operator. Maintaining proper documentation is crucial for successful partnerships in the transportation business.

Similar forms

The Owner Operator Lease Agreement is similar to a Freight Broker Agreement. Both documents outline the responsibilities of the parties involved in transporting goods, specifying the terms of engagement between a freight broker and a carrier. Just like the Owner Operator Lease Agreement, the Freight Broker Agreement details the obligations for securing necessary permits, maintaining insurance, and providing liability coverage for loss or damage during transportation of goods. Each agreement serves to formalize the business relationship while ensuring compliance with relevant regulations and safety standards.

Another document that shares similarities is the Independent Contractor Agreement. This type of agreement clearly defines the relationship between the two parties, affirming that the Owner Operator acts as an independent contractor rather than an employee of the Carrier. Both documents contain provisions to outline payment terms, liability, and other obligations. This is essential for maintaining legal clarity regarding each party's responsibilities, thus protecting their individual interests and addressing potential legal liabilities.

The Equipment Lease Agreement is also comparable. In this document, the terms around usage, maintenance, and liability for equipment are specified, mirroring the expectations set forth in the Owner Operator Lease Agreement. Like the Owner Operator document, the Equipment Lease Agreement includes details about insurance and indemnification, emphasizing mutual responsibility for the equipment's condition and compliance with regulations throughout the lease period.

A Bill of Lading can be seen as a close relative of the Owner Operator Lease Agreement. While it acts primarily as a receipt for goods being transported, it also outlines the responsibilities of the shipper and carrier, much like the Owner Operator Lease Agreement. Both documents ensure that the parties involved understand the liability for loss or damage, as well as the necessary provisions for legal compliance during the shipment process.

The Cargo Insurance Policy is another relevant document. While the Owner Operator Lease Agreement mandates specific insurance coverage, a Cargo Insurance Policy specifies the protections afforded during the transportation of goods, covering loss or damage. They work in tandem to ensure that the Owner Operator not only carries insurance but that the coverage aligns with the risks outlined in the Owner Operator Lease Agreement.

Additionally, a Service Level Agreement (SLA) shares common ground with the Owner Operator Lease Agreement. An SLA defines performance criteria and quality standards, ensuring the Owner Operator meets agreed-upon obligations concerning delivery times, cargo safety, and communication protocols. Both documents aim to maintain clarity in expectations and recourse should the terms of service be breached.

The Transport Agreement also parallels the Owner Operator Lease Agreement. This document sets forth the specific terms governing the transport of goods by the designated carrier—a role typically fulfilled by the Owner Operator. Both agreements contain terms regarding cargo responsibility and payment for services rendered, underlining the necessity for clear communication and contractual obligations in the logistics industry.

Lastly, a Non-Disclosure Agreement (NDA) bears resemblance in terms of confidentiality provisions. While the Owner Operator Lease Agreement contains terms about keeping details of the agreement confidential, an NDA is solely focused on protecting proprietary information. Both documents emphasize the importance of safeguarding sensitive business information, reinforcing trust in business relationships formed during transportation dealings.

Dos and Don'ts

When filling out the Owner Operator Lease Agreement form, consider the following guidelines:

  • Do read the entire agreement thoroughly before signing.
  • Don’t omit any required details, such as names and dates.
  • Do ensure all licenses and permits are current and included.
  • Don’t ignore any sections that ask for specific information.
  • Do keep copies of all documents for your records.
  • Don’t modify the agreement unless both parties agree in writing.
  • Do verify the payment terms and timeline for compensation.
  • Don’t forget to include any required insurance information.
  • Do consult with a legal professional if you have questions.

Misconceptions

  • Misconception 1: The Owner Operator is an employee of the Carrier.

    This is not true. The Owner Operator is considered an independent contractor. The agreement clearly states that the Owner Operator employs the drivers, and this keeps the relationship separate from that of an employee and employer.

  • Misconception 2: The Owner Operator is not responsible for any damages or losses during transportation.

    In fact, the agreement stipulates that the Owner Operator assumes liability for the safety of all goods during transport. They are responsible for any loss or damage to the goods while they are in the Owner Operator’s care.

  • Misconception 3: Any changes to the agreement can be made verbally.

    This is incorrect. Any modifications to the Owner Operator Lease Agreement must be in writing and signed by both parties. This ensures clarity and prevents misunderstandings.

  • Misconception 4: Insurance requirements can be ignored if the Owner Operator has their own policy.

    This is a false assumption. The Owner Operator must meet specific insurance requirements as outlined in the agreement, regardless of any personal policies they may have. Compliance with federal and state laws is essential.

Key takeaways

Filling out and using the Owner Operator Lease Agreement form involves careful attention to various important aspects. Here are key takeaways to consider:

  • Permits and Compliance: The Owner Operator must secure all necessary permits and comply with federal, state, and local laws. This includes obtaining certification from the Federal Motor Carrier Safety Administration.
  • Liability Responsibilities: The Owner Operator assumes significant liability for the goods transported, including any potential damages, loss, or hazardous waste issues.
  • Insurance Requirements: Adequate insurance coverage is required. The Owner Operator must provide proof of insurance that meets the Federal Motor Carrier Safety Administration standards.
  • Confidentiality: All terms of the agreement, as well as any proprietary information related to the Carrier’s business, must remain confidential unless written consent is obtained from the Carrier.
  • Modification of Agreement: Any changes to the contract must be made in writing and signed by both parties, ensuring that all aspects of the agreement are mutually agreed upon.

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