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The Owner Operator Lease Agreement is a vital document that outlines the relationship between a Carrier and an Owner Operator in the transportation industry. This agreement sets the stage for the Owner Operator to transport goods on behalf of the Carrier, defining key responsibilities and expectations for both parties. Essential components include general provisions that require the Owner Operator to secure necessary permits and comply with all applicable laws. The agreement also stipulates the Owner Operator's obligations regarding the delivery of cargo, including the need for written receipts and the liability for any loss or damage during transportation. Insurance requirements are clearly outlined, ensuring that the Owner Operator maintains appropriate coverage. Additionally, the document emphasizes the independent contractor status of the Owner Operator, safeguarding both parties from potential liabilities. Confidentiality clauses protect sensitive business information, while provisions for notices and applicable laws ensure clear communication and legal compliance. Overall, this agreement serves as a comprehensive framework that facilitates a successful partnership between the Carrier and the Owner Operator, fostering accountability and mutual respect in the transportation of goods.

Documents used along the form

The Owner Operator Lease Agreement is a crucial document in the transportation industry, outlining the relationship between the carrier and the owner operator. Alongside this agreement, several other forms and documents are often utilized to ensure clarity and compliance in operations. Below are some of the key documents that complement the Owner Operator Lease Agreement.

  • Bill of Lading: This document serves as a receipt for goods being transported. It details the type and quantity of cargo, and it is signed by both the shipper and the carrier. The bill of lading is essential for tracking shipments and establishing ownership during transit.
  • Employment Verification Form: This document is essential for confirming an individual's employment status and is often required for loan applications or rental agreements. For those needing to fill out the form, please refer to California PDF Forms.
  • Insurance Certificate: This document provides proof of insurance coverage for the owner operator's vehicles and cargo. It ensures that both parties are protected against potential losses or damages during transportation, meeting the minimum requirements set by regulatory authorities.
  • Freight Rate Agreement: This agreement outlines the rates and charges for transporting goods. It specifies the compensation the owner operator will receive for their services and is crucial for financial planning and transparency between the parties.
  • Permits and Licenses: These documents are necessary for legal compliance in the transportation industry. They include various local, state, and federal permits required for operating commercial vehicles and transporting specific types of goods, especially hazardous materials.

Utilizing these documents in conjunction with the Owner Operator Lease Agreement helps establish a solid foundation for the business relationship. Each document plays a vital role in ensuring compliance, protecting interests, and facilitating smooth operations in the transportation sector.

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Owner Operator Lease Agreement Example

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

FAQ

What is an Owner Operator Lease Agreement?

An Owner Operator Lease Agreement is a formal contract between a carrier and an owner operator. It outlines the terms under which the owner operator will transport goods for the carrier. This agreement is essential for establishing the responsibilities and expectations of both parties in the transportation of freight. It ensures that the owner operator secures necessary permits and complies with applicable laws while transporting goods safely and efficiently.

What are the key responsibilities of the Owner Operator?

The Owner Operator has several important responsibilities, including:

  1. Securing all necessary permits and licenses for transportation.
  2. Complying with federal, state, and local laws and regulations.
  3. Providing evidence of compliance to the carrier upon request.
  4. Transporting cargo safely and in accordance with the carrier’s tariffs and service contracts.
  5. Indemnifying the carrier against any liabilities arising from their operations.

These responsibilities are crucial for maintaining a professional relationship and ensuring that the transportation process runs smoothly.

How does compensation work under this agreement?

Compensation for the Owner Operator is determined based on a rate schedule attached to the agreement. The carrier agrees to pay the owner operator for their services within sixty days of receiving an invoice. It is important for both parties to clearly understand the rates and charges outlined in the agreement to avoid any misunderstandings regarding payment.

Can the Owner Operator assign the contract to someone else?

No, the Owner Operator cannot assign the contract to another party without the written consent of the carrier. This clause is in place to maintain the integrity of the agreement and ensure that the carrier is aware of who is responsible for the transportation of goods at all times.

What happens if there is a breach of the agreement?

If either party fails to comply with the terms of the agreement, it may result in a breach. In such cases, the non-breaching party may seek remedies, which could include damages or termination of the agreement. The Owner Operator is particularly responsible for indemnifying the carrier against any claims or liabilities that arise from their failure to meet the terms of the contract. Therefore, it is essential for both parties to adhere to the agreement to avoid potential legal issues.

Key takeaways

When filling out and using the Owner Operator Lease Agreement form, several key considerations should be kept in mind to ensure compliance and clarity between the parties involved.

  • Understand the Parties Involved: Clearly identify the Carrier and Owner Operator in the agreement. Accurate names and designations are essential for legal clarity.
  • Permits and Licenses: The Owner Operator must secure all necessary permits and licenses for transportation. This includes compliance with federal, state, and local regulations.
  • Delivery Obligations: The Owner Operator agrees to transport a specified minimum amount of freight during the contract period. This ensures accountability for both parties.
  • Indemnification Responsibilities: The Owner Operator must indemnify the Carrier against various liabilities, including those arising from the actions of its employees or subcontractors.
  • Insurance Requirements: The Owner Operator is required to maintain specific insurance coverage, including cargo and liability insurance, as mandated by federal and state laws.
  • Confidentiality Clauses: The terms of the agreement and any proprietary information about the Carrier's business must remain confidential unless written consent is obtained.
  • Written Modifications: Any changes to the agreement must be documented in writing and signed by both parties to be legally binding.
  • Governing Law: The agreement should specify the state laws that govern the contract, which is crucial for resolving any potential disputes.

Form Characteristics

Fact Name Fact Description
Parties Involved The agreement is between a Carrier and an Owner Operator, both of whom are engaged in the transportation of goods.
General Provisions Owner Operator must secure all necessary permits and comply with federal, state, and local regulations for transportation.
Independent Contractor Status The Owner Operator is recognized as an independent contractor, maintaining employment relationships with their own drivers.
Liability Assumption Owner Operator assumes liability for the safe transportation of goods and must indemnify the Carrier against various claims.
Insurance Requirements Owner Operator must carry insurance in compliance with the Federal Motor Carrier Safety Administration and UIIA standards.
Confidentiality Clause Owner Operator is required to keep the terms of the agreement and any related business information confidential.
Governing Law The agreement is governed by the laws of the state specified in the document, which must be filled in.
Modification of Agreement Any changes to the agreement must be made in writing and signed by both parties to be valid.