Owner Operator Lease Agreement PDF Template

The Owner Operator Lease Agreement is a legal document that outlines the terms and conditions between a Carrier and an Owner Operator engaged in the transportation of freight. This agreement serves to establish the responsibilities of each party, ensuring compliance with applicable laws and facilitating smooth operations in the transportation of goods. To take the next step, fill out the form by clicking the button below.

Overview

The Owner Operator Lease Agreement form serves as a crucial document that outlines the responsibilities and obligations between a Carrier and an Owner Operator in the transportation industry. This agreement is entered into voluntarily on a specified date, establishing both parties as essential stakeholders in the logistics process. It begins by acknowledging the Owner Operator's role in transporting general freight and sets out the framework to facilitate this relationship. Key elements include requirements for permits, licenses, and compliance with applicable laws, which the Owner Operator must meet. The form details the obligation for the Owner Operator to deliver a minimum quantity of freight while adhering to the Carrier's tariffs. Furthermore, the agreement clarifies the independent contractor status of the Owner Operator along with the liabilities associated with hazardous materials, ensuring the Carrier is indemnified against potential claims. In addition, provisions regarding insurance, confidentiality, notice requirements, and territory of service are clearly delineated, creating a comprehensive understanding of the working arrangement. Ultimately, this lease agreement aims to protect both parties by establishing clear expectations and methods of accountability, crucial for a successful transportation operation.

Owner Operator Lease Agreement Preview

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

↓ Owner Operator Lease Agreement

File Properties

Fact Name	Details
Purpose	The Owner Operator Lease Agreement outlines terms for transportation services between a Carrier and an Owner Operator.
General Provisions	Owner Operators must secure necessary permits and comply with all applicable laws.
Independence	The Owner Operator operates as an independent contractor and is responsible for their employees.
Liability	Owner Operators assume liability for cargo safety and are responsible for any damages or losses during transport.
Insurance Requirements	Owners must maintain certain insurance levels as specified by federal laws and the Uniform Intermodal Interchange Agreement (UIIA).
Non-Disclosure	Owner Operators are required to keep contract terms and Carrier information confidential.
Termination	This Lease Agreement replaces all previous contracts related to transportation services provided.
Compensation	Owner Operators are paid for their services within sixty days of the invoice date, as agreed upon in the rate schedule.
Applicable Law	The agreement is governed by the laws of the specified state, which must be named in the agreement.
Amendments	Changes to the agreement must be in writing and signed by both parties to have legal effect.

Instructions on Utilizing Owner Operator Lease Agreement

After completing the Owner Operator Lease Agreement form, the document must be reviewed and signed by both parties involved, ensuring that all terms and conditions outlined are clear and agreed upon before proceeding with transportation operations.

Write the date on the first line where it asks for "this ____ day of ______________ 20___."
Enter the name of the Carrier in the line designated for “Carrier.”
Enter the name of the Owner Operator in the line designated for “Owner Operator.”
For the section labeled "GENERAL PROVISIONS," fill in the time period for which the Owner Operator agrees to deliver cargo.
Ensure that all transportation tasks of the Owner Operator comply with federal, state, and local regulations and provide evidence of compliance if requested.
Outline any specific shipping details and conditions in the relevant sections.
Provide a signed receipt for all goods received from the Carrier to confirm their condition.
Specify that any additional forms, such as tariffs or bills of lading, do not supersede this agreement unless stated otherwise.
Outline how the Owner Operator will ensure the safe transportation and care of the goods.
Indicate any insurance that the Owner Operator will carry, according to the outlined requirements.
Confirm that the compensation terms and territories are accurately described according to the attached rate schedule.
Fill in the state name that governs the agreement.
Leave space for both parties to sign in the designated places at the bottom of the form.

Important Facts about Owner Operator Lease Agreement

What is an Owner Operator Lease Agreement?

An Owner Operator Lease Agreement is a contractual arrangement between a carrier and an owner operator, allowing the owner operator to transport goods on behalf of the carrier. This agreement outlines the responsibilities, rights, and obligations of both parties in relation to the transportation of freight. Owner operators are typically independent contractors who have their own trucks and seek to provide transport services to carriers. This contract helps to formalize the relationship and ensure compliance with various regulations.

What are the primary responsibilities of the Owner Operator under this agreement?

The Owner Operator is responsible for securing all necessary permits and licenses for their business operations. They must also comply with all applicable federal, state, and local laws governing transportation. Additionally, the Owner Operator needs to deliver a specified amount of freight as agreed upon in the contract and must ensure the safe transportation of goods entrusted to them. This includes taking responsibility for any loss or damage to the freight while in their care. Furthermore, they are responsible for obtaining adequate insurance coverage to protect against liabilities arising from their services.

How is compensation structured in the Owner Operator Lease Agreement?

The compensation for services rendered by the Owner Operator is defined within the agreement. Carrier is obligated to pay the Owner Operator according to the rates specified in an attached rate schedule. Payment typically occurs within sixty days following the submission of an invoice. This structure ensures that both parties are clear about the financial terms of their agreement, promoting transparency and trust.

Can the Owner Operator assign their responsibilities to another party?

No, the Owner Operator cannot assign their responsibilities or rights under this agreement to another party without the written consent of the Carrier. This provision is in place to maintain the integrity of the contractual relationship and ensure that the Carrier retains control over who is providing transportation services. Therefore, if the Owner Operator wishes to engage a third party for any tasks outlined in the agreement, they must first obtain approval from the Carrier.

Common mistakes

When filling out the Owner Operator Lease Agreement form, it's crucial to avoid common mistakes that can result in legal complications or delays. One major error is neglecting to provide accurate information about the parties involved. This includes full names and any relevant business entities. Omitting or misspelling these details can lead to disputes later on.

Another mistake often made is the failure to specify the effective date of the agreement. The blank fields should be filled in meticulously. An ambiguous date can create confusion regarding when the obligations under the agreement commence. Ensure that both parties clearly understand and agree on this date.

In addition, many individuals overlook the importance of including the specific territory in which the services will be performed. Failing to outline geographic boundaries can lead to misunderstandings about service areas and responsibilities. Always include this information prominently in the designated section of the agreement.

Signatures are another critical area where errors can occur. Both the Owner Operator and Carrier must sign the document. It’s essential to check that all required signatures are present and clearly written. Incomplete signatures can render the agreement invalid, complicating future interactions.

Moreover, individuals frequently ignore the insurance requirements detailed in the agreement. It's vital to ensure compliance with the stated insurance obligations. This is not just a formality; failure to comply can expose you to significant liabilities down the line.

Providing receipts for goods delivered is often mishandled. The agreement stipulates that the Owner Operator must retain signed receipts for at least two years. This simple administrative oversight can have serious implications if a dispute arises regarding the delivery.

Not maintaining confidentiality regarding the agreement’s terms is another mistake. The Owner Operator must treat the business information shared in the agreement as confidential. Disclosing such information without consent can lead to legal repercussions and damage business relationships.

Lastly, individuals sometimes forget to review and adhere to state-specific legal requirements. The agreement should specify which state laws govern its interpretation. Ignoring this detail can create confusion and complications if legal issues arise.

By being aware of these mistakes and taking necessary precautions, both the Owner Operator and Carrier can safeguard their interests and establish a clear, effective agreement.

Documents used along the form

The Owner Operator Lease Agreement is a crucial document in the transportation industry, establishing the relationship between the Owner Operator and the Carrier. However, it is not the only form needed for a complete operational framework. Here’s a list of other important forms and documents typically used in conjunction with the Owner Operator Lease Agreement.

Bill of Lading: This document serves as a receipt for freight services and outlines the terms under which cargo is transported. It includes details about the shipment, such as the type and quantity of goods, as well as the responsibilities of all parties involved.
Freight Manifest: This form lists all of the items being shipped under a specific journey. It provides a detailed account of the cargo and can be essential for record-keeping and for regulatory compliance.
Rate Confirmation: Often provided by the Carrier, this document outlines the agreed-upon rates for transportation services. It ensures transparency about the costs and must match the pricing outlined in the Owner Operator Lease Agreement.
Insurance Certificate: This proof of insurance demonstrates that the Owner Operator has the required coverage for liability and cargo. It is often required by the Carrier before any transportation occurs to protect against potential risks.
Permits and Licenses: Owner Operators must maintain various permits and licenses, such as the Motor Carrier authority. These documents ensure compliance with state and federal laws for transporting specific types of freight.
Tax Forms (e.g., 1099): These forms are necessary for tax reporting purposes. The Carrier may need to issue a 1099 form to the Owner Operator based on the payments made throughout the year, highlighting the independent contractor relationship.
Subcontractor Agreement: If any subcontractors are engaged by the Owner Operator for the work outlined in the Owner Operator Lease Agreement, this document details the terms of that relationship, ensuring all parties understand their responsibilities.
Confidentiality Agreement: This form is essential for protecting sensitive business information. It ensures that all parties keep proprietary information confidential and outlines the consequences if this confidentiality is breached.

Each of these documents plays a vital role in maintaining order and clarity in the transportation process. They help to define expectations and responsibilities, provide necessary legal protections, and ensure compliance with regulations, ultimately supporting a successful working relationship between Owners Operators and Carriers.

Similar forms

Lease Agreement: Similar to the Owner Operator Lease Agreement, a general lease agreement outlines terms between a lessor and a lessee regarding the rental of property or assets. Both documents define responsibilities and rights of the signatories and focus on compliance with applicable regulations.
Independent Contractor Agreement: This type of agreement specifies the relationship between a contractor and a client. Like the Owner Operator Lease Agreement, it typically emphasizes that the contractor operates independently and outlines obligations regarding indemnification and liability.
Bill of Lading: A Bill of Lading serves as a document of title for goods in transit. Similar to the Owner Operator Lease Agreement, it establishes terms for the transportation of those goods, including liability and receipt of the products being transported.
Service Agreement: A service agreement details the services provided by one party to another. Much like the Owner Operator Lease Agreement, it specifies duties, compensation, insurance requirements, and conditions under which the agreement may be modified or terminated.
Insurance Policy: An insurance policy outlines the coverage, terms, and claims process for risks being insured. This document aligns with the insurance provisions in the Owner Operator Lease Agreement, where it mandates compliance with specific coverage requirements and responsibilities for damage or loss.

Dos and Don'ts

When filling out the Owner Operator Lease Agreement form, it's essential to follow best practices to ensure clarity and compliance. Here are some key recommendations:

Do read the entire agreement carefully before filling it out. Understanding each clause is crucial.
Do provide accurate and complete information. Make sure all names, addresses, and other details are correct.
Do keep copies of all submitted documents. This helps maintain a record of your application and agreements.
Do ask for clarification on any terms or conditions you do not understand. Open communication is vital.

Don't rush through the form. Taking your time can prevent costly mistakes.
Don't leave any required fields blank. Incomplete information can lead to processing delays.
Don't ignore any legal obligations as stated in the agreement. Compliance is critical for both parties.
Don't alter the agreement without mutual written consent. Any changes need to be documented appropriately.

Misconceptions

Misconceptions about the Owner Operator Lease Agreement can lead to misunderstandings between the parties involved. Here are five common misconceptions and the truths behind them:

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

This is false. The agreement explicitly states that the Owner Operator functions as an independent contractor. Owner Operators employ their drivers and retain operational control, distinct from being an employee of the Carrier.

Misconception 2: The Lease Agreement does not require insurance.

In reality, the agreement mandates that Owner Operators carry specific types of insurance as per federal regulations. This includes cargo and liability insurance, ensuring protection for both parties against potential losses.

Misconception 3: All terms can be changed verbally or informally.

This is inaccurate. The contract specifies that any modifications must be in writing and signed by both parties. Verbal agreements are not binding and can lead to disputes.

Misconception 4: The Owner Operator is responsible for damage during transport only if it is intentional.

Not true. The Owner Operator assumes full liability for loss or damage to goods during transport, regardless of whether the damage was intentional or accidental. This includes all goods in their care.

Misconception 5: The Carrier can change the terms of payment without informing the Owner Operator.

This is misleading. Payment terms are part of the agreement and must be adhered to. Any changes would require mutual consent, ensuring that both parties are aware of the agreed terms.

Key takeaways

Ensure all necessary permits and licenses are secured before operating under the agreement. Compliance with federal, state, and local regulations is mandatory.
The Owner Operator must provide proof of contract authority to transport goods for the Carrier. Immediate notice of any cancellation of this authority is essential.
All shipments must meet the standards outlined in the Carrier's tariffs or service contracts. This includes any containers associated with the goods.
Modifications to the agreement require written consent from both parties; verbal agreements are not acceptable.
The Owner Operator is designated as an independent contractor. All personnel operating under this agreement must remain employees of the Owner Operator.
Any engagement of subcontractors does not affect the independent contractor status between the Carrier and Owner Operator. The Owner Operator remains liable for their actions.
Owner Operators must maintain adequate insurance coverage, including cargo and liability insurance, as required by federal and state laws.
All compensation for services should be invoiced and paid within 60 days. The rate schedule must be provided and agreed upon by both parties.
Confidentiality is critical. Terms of the agreement and any related business information must not be disclosed without written consent from the Carrier.

Other PDF Templates

Fake Restraining Order Text - Attending the hearing is crucial for the restrained person to present their side of the case.

How to Create Pay Stubs for Self Employment - Streamlines payment information for easy reference by contractors.