The Owner Operator Lease Agreement is a legal document that outlines the terms between a Carrier and an Owner Operator for the transportation of goods. This agreement establishes the responsibilities, liabilities, and rights of both parties to ensure compliance with applicable laws and regulations. Understanding this form is essential for anyone involved in the transportation industry, as it sets the foundation for a successful working relationship.
To fill out the Owner Operator Lease Agreement form, click the button below.
The Owner Operator Lease Agreement is a crucial 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, ensuring compliance with all applicable laws and regulations. Key aspects of the form include general provisions that mandate the owner operator to secure necessary permits and licenses while also detailing their responsibilities regarding the transportation of various types of cargo, including hazardous materials. The agreement emphasizes the independent contractor status of the owner operator, clarifying that they are responsible for their own employees and any subcontractors they may engage. Additionally, it covers liability issues, requiring the owner operator to indemnify the carrier against any claims arising from non-compliance with laws or regulations. Provisions for insurance coverage, the handling of goods, and confidentiality are also included, ensuring that both parties understand their obligations and rights. The agreement is designed to protect both the carrier and the owner operator, promoting a clear understanding of expectations in their business relationship.
Ensure all necessary permits and licenses are secured before starting operations. This includes compliance with federal, state, and local regulations.
Owner Operators must provide proof of contract authority from the Federal Motor Carrier Safety Administration to the Carrier.
All shipments should be transported in accordance with the terms of the agreement and any applicable tariffs or service contracts.
The agreement cannot be modified without written consent from both parties.
Owner Operators are independent contractors and are responsible for their employees and subcontractors.
Liability for any damages or losses during transportation rests with the Owner Operator.
Owner Operators must maintain adequate insurance coverage as per the requirements set forth in the agreement.
Confidentiality is crucial; Owner Operators should not disclose any terms or business information without written consent from the Carrier.
All notices related to the agreement must be sent in writing via certified or registered mail.
The agreement will be governed by the laws of the state specified in the document.
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
What is an Owner Operator Lease Agreement?
An Owner Operator Lease Agreement is a contract between a carrier and an owner operator, allowing the owner operator to transport goods on behalf of the carrier. This agreement outlines the responsibilities, liabilities, and operational guidelines for both parties, ensuring that transportation services are conducted legally and efficiently.
Who are the parties involved in this agreement?
The two main parties involved in an Owner Operator Lease Agreement are the Carrier and the Owner Operator. The Carrier is typically a company that requires transportation services, while the Owner Operator is an individual or entity that owns and operates a truck or fleet of trucks to transport goods.
What are the general provisions included in the agreement?
The general provisions cover various aspects such as compliance with laws, responsibilities for securing necessary permits, and the relationship between the Carrier and the Owner Operator. It emphasizes that the Owner Operator is an independent contractor and outlines the need for insurance and liability coverage during operations.
What responsibilities does the Owner Operator have?
The Owner Operator is responsible for securing all necessary permits and licenses, complying with applicable laws, and ensuring the safe transportation of goods. Additionally, they must provide written receipts upon delivery and maintain records for inspections. They also assume liability for any loss or damage to the goods during transportation.
How is compensation determined in the agreement?
Compensation is based on an agreed-upon rate schedule, which outlines the rates and charges for the services provided. The Carrier agrees to pay the Owner Operator within sixty days of receiving an invoice. This ensures that both parties have a clear understanding of the financial aspects of their arrangement.
What insurance requirements must the Owner Operator meet?
The Owner Operator must carry adequate insurance coverage, including cargo, personal injury, and general liability insurance. This insurance must meet the minimum requirements set forth by the Federal Motor Carrier Safety Administration and the Uniform Intermodal Interchange Agreement (UIIA).
Can the Owner Operator assign the contract to another party?
No, the Owner Operator cannot assign the contract to another party without the written consent of the Carrier. This clause ensures that the Carrier maintains control over who is responsible for transporting their goods.
What happens if there is a dispute regarding the agreement?
In the event of a dispute, the agreement typically outlines that it shall be governed by the laws of the state specified in the contract. This means that any legal issues will be resolved according to that state's laws, providing a framework for addressing conflicts.
How long does the Owner Operator Lease Agreement last?
The duration of the agreement is specified within the contract itself. It remains in effect until the terms are fulfilled or terminated as per the conditions outlined in the agreement. Both parties must agree to any modifications in writing.
What confidentiality obligations does the Owner Operator have?
The Owner Operator is required to treat the terms of the agreement and any sensitive information regarding the Carrier's business as confidential. They cannot disclose this information to third parties without prior written consent from the Carrier, ensuring that business interests are protected.
The Owner Operator Lease Agreement is a crucial document in the transportation industry, outlining the relationship and responsibilities between the Carrier and the Owner Operator. Alongside this agreement, several other forms and documents are often utilized to ensure clarity and compliance in the transportation process. Below is a list of these documents, each with a brief description of its purpose.
Each of these documents plays a vital role in the transportation process, ensuring that all parties are protected and informed. Proper management of these forms helps maintain compliance and fosters a positive working relationship between the Carrier and the Owner Operator.
Independent Contractor Pay Stub - Independent contractors can use this pay stub to help budget and track their income effectively.
How to Make a Rental Lease Agreement - Monthly rent payments are due on the first of each month, with guidelines for payment methods included.
To ensure that your wishes are properly represented, it's crucial to explore the options available in the Illinois Durable Power of Attorney framework. For guidance on this important legal document, refer to our resource on "understanding the Durable Power of Attorney process" at https://illinoisformspdf.com/editable-durable-power-of-attorney/.
Class a Cdl Pre Trip Inspection Pictures - Ensure the first aid kit is stocked and accessible.
When filling out the Owner Operator Lease Agreement form, it is important to follow certain guidelines to ensure accuracy and compliance. Here are ten things to consider: