Sign up for The Wire Newsletter!

  1. Expedite Expo The 15th Annual Expedite Expo is YOUR truck show. Join over 5,000 people this July 24 - 25 in Ohio who share one common interest - the expedite trucking industry. The 2015 Expo promises to be the best in our 15 year history! New exhibits, trucks, demonstrations, networking sessions and educational workshops will ensure that your time spent is profitable. Don’t miss this important event! July 24 - 25, 2015 Roberts Convention Centre, Wilmington, OH. REGISTER NOW!

Owner Operator Lease Agreement

Discussion in 'General Expediter Forum' started by Grewal_1, Nov 28, 2006.

  1. Grewal_1

    Grewal_1 New Recruit

    Can any one send me a sample owner Operator lease agreement with a carrier?
     
  2. kwexpress

    kwexpress New Recruit

    KW Express
    o/o till i die

    LEASE AGREEMENT

    Agreement No. _________

    AGREEMENT made this ______ day of ________________ , 199___, by and between

    _________________________________________ , hereinafter referred to as LESSEE, located at

    ______________________________________________ and ______________________________ ,

    hereinafter referred to as LESSOR , located at _________________________________________

    _________________________________________.

    WITNESSETH:
    (1) LESSEE is a motor contract carrier of property authorized by the Federal Highway
    Administration by Permit No. MC- _____________ to provide transportation of property under contract
    with shippers and receivers of general commodities, and
    (2) LESSOR is the owner of the tractor and trailer equipment described in Appendix "A" and is
    duly authorized and empowered to execute this agreement.

    NOW THEREFORE, in consideration of the representation made herein, the parties agree as
    follows:
    (1) The LESSEE hereby leases the equipment and services of LESSOR, owned and described in
    Appendix "A". LESSOR certifies that equipment subject to this lease meets U.S. Department of
    Transportation (DOT) safety requirements and standards, and that LESSEE shall inspect such equipment
    and shall determine that such requirements and standards have been met at the time of execution of this
    lease.
    (2) Possession of equipment will be transferred under the terms of this lease from LESSOR to
    LESSEE beginning at the date and time of execution of this agreement and continue until cancellation is
    served by either LESSEE or LESSOR in writing. At such time as this lease agreement is terminated,
    LESSOR agrees to furnish LESSEE with a written receipt to show that LESSOR retakes possession of the
    equipment.
    (3) During the tenure of this lease agreement, the LESSEE shall have exclusive possession,
    control, and use of the equipment, and shall assume complete responsibility for the operation of the
    equipment for the duration of the lease. LESSOR agrees to properly identify equipment with the Federal
    Highway Administration's "MC" number and the name of LESSEE.
    (4) LESSOR agrees to comply with all safety regulations required by the Department of
    Transportation and the various States in which operations are conducted.
    (5) In consideration for the use of the equipment and services of LESSOR, the LESSEE agrees
    to compensate LESSOR in the amount of ______% of gross revenues for each trip ticket ticket. LESSEE
    will provide all permitting necessary and will pay all fuel taxes. LESSOR has a right to examine
    LESSEE's documents containing information for determining charges billed to the shipper.
    (6) Payment shall be made within 15 days after submission of the necessary delivery documents
    and other paperwork concerning a trip in the service of LESSEE. Delivery documents and paperwork
    concerning a trip required before the LESSOR can receive payment is defined as driver's log books
    required by the Department of Transportation, and those documents necessary for LESSEE to secure
    payment from the shipper. LESSEE may require the submission of additional documents by the LESSOR
    but not as a prerequisite to payment. Payment to the LESSOR shall not be made contingent upon
    submission of a bill of lading to which no exceptions have been taken. The LESSOR shall not set time
    limits for the submission by the LESSOR of required delivery documents and other paperwork. LESSOR
    must complete all trip tickets and reports. Each trip report must be turned in before the next trip is
    assigned.
    (7) The LESSEE has a legal obligation and the responsibility to maintain liability and cargo
    insurance coverage for the protection of the public as required by Federal Highway Administration
    regulations under 49 U.S.C. 10927, as amended by Public Law 104-88. All insurance cost for the
    operation of LESSOR's equipment while in the service of LESSEE shall be paid by LESSOR. If the cost
    of the insurance is initially paid by LESSEE, such costs will be charged-back in full to LESSOR.
    (8) The LESSOR is responsible for providing all fuel, meals and lodging, repairs and
    maintenance to tractor and trailer, tolls, ferries, detention, etc. necessary in the operation of equipment
    while in the service of LESSEE. If it becomes necessary for LESSEE to pay or provide any item that
    LESSOR is responsible for, the LESSEE has the right to deduct such cost from the LESSOR's
    compensation at the time of payment or settlement. If such deduction becomes necessary, then LESSEE
    will provide LESSOR with a full explanation and/or documentation as to how the amount of each item is
    to be computed. The LESSOR is not required to purchase or rent any products, equipment, or services
    from LESSEE as a condition of entering into this lease agreement.
    (9) It is the duty of the LESSOR to properly determine the condition of the freight at the time
    such freight is picked-up from the shipper, and a further duty to transport the shipment to its destination
    in as nearly that same condition as when it was picked-up. The LESSOR will inspect all shipments at the
    time of loading and mark any exceptions or conditions on the bill of lading or receipt. At the destination,
    the LESSOR will again inspect the freight with the consignee and mark on the delivery receipt any
    exceptions to the condition or damages to the shipment that occurred during transit. Delivery receipts
    will be turned in to the LESSEE as part of the documentation required for payment. The LESSEE has a
    right to deduct for damages of freight in transit caused by LESSOR and not reimbursed by insurance. The
    LESSEE will provide a written explanation and itemization of any deductions for cargo or property
    damage made from compensation to LESSOR.
    (10) The DRIVER is responsible for loading and unloading freight to and from the trailer,
    unless proper notations are made on the bill of lading that the driver is responsible. Except when the
    violation results from the acts or omissions of the LESSOR, the LESSEE shall assume the risks and costs
    of fines for overweight and oversize trailers when the trailers are pre-loaded, sealed, or the load is
    containerized, or when the trailer or lading is otherwise outside the LESSOR's control, and for improperly
    permitted overdimension and overweight loads and LESSEE shall reimburse LESSOR for any fines paid
    by the LESSOR.
    (11) Escrow funds or moneys placed on deposit with LESSEE by LESSOR are not required
    under the terms of this agreement.
    (12) It is agreed that the services of LESSOR under the terms of this lease agreement is that of
    an independent contractor and that no "employee-employer" relationship exists between LESSOR and
    LESSEE. LESSOR is therefore responsible for providing his own workmen's compensation insurance,
    employment and income taxes, etc. Further, any drivers or employees of LESSOR are the complete
    responsibility of the LESSOR.
    (13) This lease agreement may be canceled upon written notice by either LESSOR or LESSEE.
    It is agreed that any loads in transit will be delivered prior to cancellation and all required paperwork will
    be turned in prior to final settlement. Any costs incurred by LESSEE to complete the delivery of a load
    in transit will be charged to the LESSOR. The LESSOR agrees to remove identification signs or devices
    from the equipment upon the termination of the lease and return such signs or devices to the LESSEE. If
    identification has been painted directly on the equipment, then LESSOR agrees to furnish a photograph of
    both sides of the equipment showing identification has been removed or painted over. Failure to furnish
    evidence of the removal of identification from the equipment will result in the withholding of the final
    settlement.
    (14) This AGREEMENT is to become effective _________________, and shall remain in effect
    for a period of one year from such date, and from year to year thereafter, subject to the right of either party
    hereto to cancel or terminate the AGREEMENT at any time with written notice of one party or the other.
    IN WITNESS WHEREOF, this agreement has been entered into and executed by duly authorized
    representatives of LESSOR and LESSEE.


    _________________________________ __________________________________
    (LESSEE) (LESSOR)
     
  3. kwexpress

    kwexpress New Recruit

    KW Express
    o/o till i die


    this is the one I use to lease on owner ops.just fill in the blanks
     
  4. fastman_1

    fastman_1 Expert Expediter

    Also any Carrier worth a hill of beans will send you a copy of a Lease Agreement.







































    Owner/Operator since 1979
    Expediter since 1997
    B Unit Semi Retired
    Somedays are Diamonds and Somedays are Stones
    Home is Wherever you Park.
    The Price of Freedom is Written on the Wall.
     
  5. LDB

    LDB Seasoned Expediter

    Ask the carrier(s) you are interested in to fax you one. If they refuse to do so think very carefully about signing with them.

    Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
    Owner, Panther trucks 5508, 5509, 5641
    Highway Watch Participant, Truckerbuddy
    EO Forum Moderator
    ----------
    Support the entire Constitution, not just the parts you like.
     
  6. greg334

    greg334 New Recruit

    >Ask the carrier(s) you are interested in to fax you one. If
    >they refuse to do so think very carefully about signing with
    >them.
    >
    Isn't there somewhere that they have to disclose the agreement on request by law? I remember somewhere in my green book that states that they (the carrier) can't expect you to sign anything without a review period or something like that.

    Beside, if any carrier or anyone else does not allow you to take the contract to a lawyer, don't deal with them.
     
  7. LDB

    LDB Seasoned Expediter

    I'm pretty sure you are right and they are required to furnish it on request but can't cite a source for that. I know the reputable firms would furnish one and any that wouldn't would drop off my list immediately.

    Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
    Owner, Panther trucks 5508, 5509, 5641
    Highway Watch Participant, Truckerbuddy
    EO Forum Moderator
    ----------
    Support the entire Constitution, not just the parts you like.
     
  8. taz123

    taz123 New Recruit

    j.baker_74@yahoo.com

    LEASE AGREEMENT

    Agreement No. _________

    AGREEMENT made this ______ day of ________________ , 2009__, by and between

    _________________________________________ , hereinafter referred to as LESSEE, located at

    ______________________________________________ and ______________________________ ,

    hereinafter referred to as LESSOR , located at _________________________________________

    _________________________________________.

    WITNESSETH:
    (1) LESSEE is a motor contract carrier of property authorized by the Federal Highway
    Administration by Permit No. MC- _____________ to provide transportation of property under contract
    with shippers and receivers of general commodities, and
    (2) LESSOR is the owner of the tractor and trailer equipment described in Appendix "A" and is
    duly authorized and empowered to execute this agreement.

    NOW THEREFORE, in consideration of the representation made herein, the parties agree as
    follows:
    (1) The LESSEE hereby leases the equipment and services of LESSOR, owned and described in
    Appendix "A". LESSOR certifies that equipment subject to this lease meets U.S. Department of
    Transportation (DOT) safety requirements and standards, and that LESSEE shall inspect such equipment
    and shall determine that such requirements and standards have been met at the time of execution of this
    lease.
    (2) Possession of equipment will be transferred under the terms of this lease from LESSOR to
    LESSEE beginning at the date and time of execution of this agreement and continue until cancellation is
    served by either LESSEE or LESSOR in writing. At such time as this lease agreement is terminated,
    LESSOR agrees to furnish LESSEE with a written receipt to show that LESSOR retakes possession of the
    equipment.
    (3) During the tenure of this lease agreement, the LESSEE shall have exclusive possession,
    control, and use of the equipment, and shall assume complete responsibility for the operation of the
    equipment for the duration of the lease. LESSOR agrees to properly identify equipment with the Federal
    Highway Administration's "MC" number and the name of LESSEE.
    (4) LESSOR agrees to comply with all safety regulations required by the Department of
    Transportation and the various States in which operations are conducted.
    (5) In consideration for the use of the equipment and services of LESSOR, the LESSEE agrees
    to compensate LESSOR in the amount of ______% of gross revenues for each trip ticket ticket. LESSEE
    will provide all permitting necessary and will pay all fuel taxes. LESSOR has a right to examine
    LESSEE's documents containing information for determining charges billed to the shipper.
    (6) Payment shall be made within 15 days after submission of the necessary delivery documents
    and other paperwork concerning a trip in the service of LESSEE. Delivery documents and paperwork
    concerning a trip required before the LESSOR can receive payment is defined as driver's log books
    required by the Department of Transportation, and those documents necessary for LESSEE to secure
    payment from the shipper. LESSEE may require the submission of additional documents by the LESSOR
    but not as a prerequisite to payment. Payment to the LESSOR shall not be made contingent upon
    submission of a bill of lading to which no exceptions have been taken. The LESSOR shall not set time
    limits for the submission by the LESSOR of required delivery documents and other paperwork. LESSOR
    must complete all trip tickets and reports. Each trip report must be turned in before the next trip is
    assigned.
    (7) The LESSEE has a legal obligation and the responsibility to maintain liability and cargo
    insurance coverage for the protection of the public as required by Federal Highway Administration
    regulations under 49 U.S.C. 10927, as amended by Public Law 104-88. All insurance cost for the
    operation of LESSOR's equipment while in the service of LESSEE shall be paid by LESSOR. If the cost
    of the insurance is initially paid by LESSEE, such costs will be charged-back in full to LESSOR.
    (8) The LESSOR is responsible for providing all fuel, meals and lodging, repairs and
    maintenance to tractor and trailer, tolls, ferries, detention, etc. necessary in the operation of equipment
    while in the service of LESSEE. If it becomes necessary for LESSEE to pay or provide any item that
    LESSOR is responsible for, the LESSEE has the right to deduct such cost from the LESSOR's
    compensation at the time of payment or settlement. If such deduction becomes necessary, then LESSEE
    will provide LESSOR with a full explanation and/or documentation as to how the amount of each item is
    to be computed. The LESSOR is not required to purchase or rent any products, equipment, or services
    from LESSEE as a condition of entering into this lease agreement.
    (9) It is the duty of the LESSOR to properly determine the condition of the freight at the time
    such freight is picked-up from the shipper, and a further duty to transport the shipment to its destination
    in as nearly that same condition as when it was picked-up. The LESSOR will inspect all shipments at the
    time of loading and mark any exceptions or conditions on the bill of lading or receipt. At the destination,
    the LESSOR will again inspect the freight with the consignee and mark on the delivery receipt any
    exceptions to the condition or damages to the shipment that occurred during transit. Delivery receipts
    will be turned in to the LESSEE as part of the documentation required for payment. The LESSEE has a
    right to deduct for damages of freight in transit caused by LESSOR and not reimbursed by insurance. The
    LESSEE will provide a written explanation and itemization of any deductions for cargo or property
    damage made from compensation to LESSOR.
    (10) The DRIVER is responsible for loading and unloading freight to and from the trailer,
    unless proper notations are made on the bill of lading that the driver is responsible. Except when the
    violation results from the acts or omissions of the LESSOR, the LESSEE shall assume the risks and costs
    of fines for overweight and oversize trailers when the trailers are pre-loaded, sealed, or the load is
    containerized, or when the trailer or lading is otherwise outside the LESSOR's control, and for improperly
    permitted overdimension and overweight loads and LESSEE shall reimburse LESSOR for any fines paid
    by the LESSOR.
    (11) Escrow funds or moneys placed on deposit with LESSEE by LESSOR are not required
    under the terms of this agreement.
    (12) It is agreed that the services of LESSOR under the terms of this lease agreement is that of
    an independent contractor and that no "employee-employer" relationship exists between LESSOR and
    LESSEE. LESSOR is therefore responsible for providing his own workmen's compensation insurance,
    employment and income taxes, etc. Further, any drivers or employees of LESSOR are the complete
    responsibility of the LESSOR.
    (13) This lease agreement may be canceled upon written notice by either LESSOR or LESSEE.
    It is agreed that any loads in transit will be delivered prior to cancellation and all required paperwork will
    be turned in prior to final settlement. Any costs incurred by LESSEE to complete the delivery of a load
    in transit will be charged to the LESSOR. The LESSOR agrees to remove identification signs or devices
    from the equipment upon the termination of the lease and return such signs or devices to the LESSEE. If
    identification has been painted directly on the equipment, then LESSOR agrees to furnish a photograph of
    both sides of the equipment showing identification has been removed or painted over. Failure to furnish
    evidence of the removal of identification from the equipment will result in the withholding of the final
    settlement.
    (14) This AGREEMENT is to become effective _________________, and shall remain in effect
    for a period of one year from such date, and from year to year thereafter, subject to the right of either party
    hereto to cancel or terminate the AGREEMENT at any time with written notice of one party or the other.
    IN WITNESS WHEREOF, this agreement has been entered into and executed by duly authorized
    representatives of LESSOR and LESSEE.


    _________________________________ __________________________________
    (LESSEE) (LESSOR)[/QUOTE]
     
  9. aristotle

    aristotle Seasoned Expediter

    Looks similar to a prenup agreement, only more important.
     
  10. greg334

    greg334 New Recruit

    Isn't a lease agreement between an owner and the company and a sub-contracting agreement between an owner and the driver?

    Anywho, the contracts I had made for my drivers has a definition of terms, a 'cheat sheet' to explain the points and was more then two pages but again.......
     
  11. Dakota

    Dakota New Recruit

    Any carrier should give you a copy if they don't
    RUN FOREST RUN!!!!!
     
  12. Scuba

    Scuba New Recruit

    I have seen several contracts that some fleet owners use and with the tax cheat that we have in charge of the IRS i would be very scared . If you are looking for a contract to look at to use to hire a "contract driver" you better go to a lawyer if the driver doesn't have an intrest in the truck he is an employee and not a contract driver no matter what your contract says and you are responcible for taxes
     
  13. OntarioVanMan

    OntarioVanMan Expert Expediter

    As always...

    Note it doesn't say 1 day, 30 days, 60 days....
    Makes all the above null and void.....
     
  14. pjjjjj

    pjjjjj New Recruit

    Something I'm curious about..

    I had always thought the lease agreement between carrier and owner/operator was between 2 business entities.. and that as such, each was free to terminate the agreement at any time, as long as proper notice was given. No reason necessary.

    Recently someone was telling me they believed that in the carrier's case, they must have a reason to terminate the agreement.

    At first, I just disregarded that as someone's wrong information, but when I think about it, it seems that many carriers will just squeeze you out, terminate because of insurance/driving record reasons, or lack of performance. So now I'm wondering if they do in fact need to have a reason.

    ??????
     
  15. OntarioVanMan

    OntarioVanMan Expert Expediter

    When I used to terminate O/O's I would state simply...
    "Services No Longer Required":D
     
  16. pjjjjj

    pjjjjj New Recruit

    Did you used to be a carrier?
     
  17. highway star

    highway star Seasoned Expediter

    Many lease agreements have language along the lines of, no guarantee to provide freight and the lease can be terminated by either party without cause. Having said that, I think they would prefer the O/O to quit, rather than be fired.
     
  18. JohnMueller

    JohnMueller Moderator Staff Member

    Highway;

    Think about this - Does any shipper GUARANTEE any amount of freight to any carrier???

    Thanks,
    HotFr8Recruiter
     
  19. MentalGiant

    MentalGiant New Recruit

    It would make our life easier, if they could. :D
     
  20. highway star

    highway star Seasoned Expediter

    No, they sure don't. And, ain't NOOOBODY guaranteein' me diddly squat right now. The last 10 days have tanked for me.

    I was just using that as an illustration of the CYA clauses that can be found in carrier agreements. I understand it and was making no judgment.
     

Share This Page