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Equipment Hire

Equipment Description


Equipment Description

What equipment is being hired?How should I describe the equipment?Describe the equipment with the following information: new/used, year, make, model, serial number, colour, or other identifying information.

Equipment

e.g. Used 2017 Caterpillar D5K2 LGP Crawler tractor, serial number CAT129841907429






Your Equipment Hire

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EQUIPMENT RENTAL AGREEMENT

THIS EQUIPMENT RENTAL AGREEMENT (this "Agreement") dated this ________ day of ________________, ________

BETWEEN:

______________________ of _________________________________
(the "Owner")

OF THE FIRST PART


- AND -

______________________ of _________________________________
(the "Hirer")

OF THE SECOND PART

(the Owner and Hirer are collectively the "Parties")

IN CONSIDERATION OF the mutual covenants and promises in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Owner leases the Equipment to the Hirer, and the Hirer leases the Equipment from the Owner on the following terms:

  1. Definitions
  2. The following definitions are used but not otherwise defined in this Agreement:
    1. "Casualty Value" means the market value of the Equipment at the end of the Term or when in relation to a Total Loss, the market value the Equipment would have had at the end of the Term but for the Total Loss. The Casualty Value may be less than but will not be more than the original purchase price of the Equipment.
    2. "Equipment" means ______________________________________________________ which has an approximate value of $____________.
    3. "Total Loss" means any loss or damage that is not repairable or that would cost more to repair than the market value of the Equipment.
  3. Lease
  4. The Owner agrees to lease the Equipment to the Hirer, and the Hirer agrees to lease the Equipment from the Owner in accordance with the terms set out in this Agreement.
  5. Term
  6. The Agreement commences on 13 December 2024 and will continue until 13 December 2024 (the "Term").
  7. Rent
  8. The rent, inclusive of GST, will be paid in instalments of $____________ each month, in advance, beginning on 13 December 2024 and will be paid on the first day of each succeeding month throughout the Term (the "Rent").
  9. Use of Equipment
  10. The Hirer will use the Equipment in a good and careful manner and will comply with all of the manufacturer's requirements and recommendations respecting the Equipment and with any applicable law, whether local, state or federal respecting the use of the Equipment, including, but not limited to, environmental and copyright law.
  11. The Hirer will use the Equipment for the purpose for which it was designed and not for any other purpose.
  12. Unless the Hirer obtains the prior written consent of the Owner, the Hirer will not alter, modify or attach anything to the Equipment unless the alteration, modification or attachment is easily removable without damaging the functional capabilities or economic value of the Equipment.
  13. Repair and Maintenance of Equipment
  14. The Hirer will, at the Hirer's own expense, keep the Equipment in good repair, appearance and condition, normal and reasonable wear and tear excepted. The Hirer will supply all parts that are necessary to keep the Equipment in such a state.
  15. If the Equipment is not in good repair, appearance and condition when it is returned to the Owner, the Owner may make such repairs or may cause such repairs to be made as are necessary to put the Equipment in a state of good repair, appearance and condition, normal and reasonable wear and tear excepted. The Owner will make the said repairs within a reasonable time of taking possession of the Equipment and will give the Hirer written notice of and invoices for the said repairs. Upon receipt of such invoices, the Hirer will immediately reimburse the Owner for the actual expense of those repairs.
  16. The Hirer may, but is not obligated to, enforce any warranty that the Owner has against the supplier or manufacturer of the Equipment. The Hirer will enforce such warranty or indemnity in its own name and at its own expense.
  17. Warranties
  18. The Equipment will be in good working order and good condition upon delivery.
  19. The Equipment is of merchantable quality and is fit for the purposes it is ordinarily used.
  20. Loss and Damage
  21. To the extent permitted by law, the Hirer will be responsible for risk of loss, theft, damage or destruction to the Equipment from any and every cause.
  22. If the Equipment is lost or damaged, the Hirer will continue paying Rent, will provide the Owner with prompt written notice of such loss or damage and will, if the Equipment is repairable, put or cause the Equipment to be put in a state of good repair, appearance and condition.
  23. In the event of Total Loss of the Equipment, the Hirer will provide the Owner with prompt written notice of such loss and will pay to the Owner all unpaid Rent for the Term plus the Casualty Value of the Equipment, at which point ownership of the Equipment passes to the Hirer.
  24. Ownership, Right to Lease and Quiet Enjoyment
  25. The Equipment is the property of the Owner and will remain the property of the Owner.
  26. The Hirer will not encumber the Equipment or allow the Equipment to be encumbered or pledge the Equipment as security in any manner.
  27. The Owner warrants that the Owner has the right to lease the Equipment according to the terms in this Agreement.
  28. The Owner warrants that as long as no Event of Default has occurred, the Owner will not disturb the Hirer's quiet and peaceful possession of the Equipment or the Hirer's unrestricted use of the Equipment for the purpose for which the Equipment was designed.
  29. Insurance
  30. No insurance coverage for the Equipment is required under this Agreement.
  31. Taxes
  32. The Hirer will report and pay all taxes, fees and charges associated with the Equipment, with the use of the Equipment, and with revenues and profits arising out of the use of the Equipment, including, but not limited to, sales taxes, property taxes, and licence and registration fees. The Hirer will pay any and all penalties and interest for failure to pay any tax, fee or charge on or before the date on which the payment is due. The Hirer will pay any and all penalties and interest for failure to report required information to any taxing authority with jurisdiction over the Hirer or the Equipment. If the Hirer fails to do any of the foregoing, the Owner may, but is not obligated to, do so at the Hirer's expense.
  33. Notwithstanding any other provision of this Agreement, the Hirer will not be required to pay any tax, fee or charge if the Hirer is contesting the validity of same in the manner prescribed by the legislation governing the imposition of same, or in the absence of a prescribed form, in a reasonable manner. However, the Hirer will indemnify and reimburse the Owner for damages and expenses incurred by the Owner arising from or related to the Hirer's failure to pay any tax, fee or charge, regardless of whether the Hirer is contesting the validity of the same or not.
  34. If the Hirer fails to pay any and all taxes, fees, and charges mentioned in this Agreement and the Owner, on behalf of the Hirer, pays the same, the Hirer will reimburse the Owner for the cost upon notification from the Owner of the amount.
  35. Indemnity
  36. The Hirer will indemnify and hold harmless the Owner against any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including attorney's fees and costs, arising out of or related to the Hirer's use of the Equipment.
  37. Default
  38. The occurrence of any one or more of the following events will constitute an event of default ("Event of Default") under this Agreement:
    1. The Hirer fails to pay any amount provided for in this Agreement when such amount is due or otherwise breaches the Hirer's obligations under this Agreement.
    2. The Hirer becomes insolvent or makes an assignment of rights or property for the benefit of creditors or files for or has bankruptcy proceedings instituted against it under the bankruptcy law of Australia or another competent jurisdiction.
    3. A writ of attachment or execution is levied on the Equipment and is not released or satisfied within 10 days.
  39. Remedies
  40. On the occurrence of an Event of Default, the Owner will be entitled to pursue any one or more of the following remedies (the "Remedies"):
    1. Declare the entire amount of the Rent for the Term immediately due and payable without notice or demand to the Hirer.
    2. Commence legal proceedings to recover the Rent and other obligations accrued before and after the Event of Default.
    3. Take possession of the Equipment, without demand or notice, wherever same may be located, without any court order or other process of law. The Hirer waives any and all damage occasioned by such taking of possession.
    4. Terminate this Agreement immediately upon written notice to the Hirer.
    5. Pursue any other remedy available in law or equity.
  41. Entire Agreement
  42. This Agreement will constitute the entire agreement between the Parties. Any prior understanding or representation of any kind preceding the date of this Agreement will not be binding on either Party except to the extent incorporated in this Agreement.
  43. Address for Notice
  44. Service of all notices under this Agreement will be delivered personally or sent by registered mail or courier to the following addresses:

    Owner:

    Hirer:

  45. Payment
  46. All dollar amounts in this agreement refer to Australian dollars, and all payments required to be paid under this Agreement will be paid in Australian dollars unless the Parties agree otherwise.
  47. Interpretation
  48. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  49. Governing Law
  50. This Agreement will be construed in accordance with and governed by the laws of Australia and the Parties submit to the exclusive jurisdiction of the Australian courts.
  51. Severability
  52. If there is a conflict between any provision of this Agreement and the applicable legislation of Australian Capital Territory (the "Act"), the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.
  53. General Terms
  54. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  55. Time is of the essence in this Agreement.
  56. This Agreement will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each Party to this Agreement.
  57. Neither Party will be liable in damages or have the right to terminate this Agreement for any delay or default in performance if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions, wars, insurrections, natural disasters, such as earthquakes, hurricanes or floods and/or any other cause beyond the reasonable control of the Party whose performance is affected.
  58. Notice to Hirer
  59. NOTICE TO THE HIRER: This is a lease. You are not buying the Equipment. Do not sign this Agreement before you read it. You are entitled to a completed copy of this Agreement when you sign it.

IN WITNESS WHEREOF ______________________ and ______________________ have duly affixed their signatures under hand and seal on this ________ day of ________________, ________


______________________________
(Witness)


______________________________
______________________ (Owner)


______________________________
(Witness)


______________________________
______________________ (Hirer)


What is an Equipment Rental Agreement?

An Equipment Rental Agreement is a contract that sets out the terms and conditions for borrowing specialty equipment or items. It outlines responsibilities, fees, and specific requirements for the hirer and the equipment owner throughout the rental period.

An Equipment Rental Agreement is also known as an:

  • Equipment rental contract
  • Equipment hire agreement
  • Equipment lease agreement
  • Equipment loan agreement
If you’re looking for a more specific contract for lending or borrowing vehicles, use LawDepot’s Vehicle Leasing Agreement for a more detailed rental agreement.

Who can use an Equipment Rental Agreement?

An Equipment Rental Agreement can benefit businesses and individuals in numerous situations.

For example, say you run a business that lends specialty equipment (e.g., agricultural industries, construction, cleaning equipment). Writing and signing an agreement will establish the terms you and the hirer must abide by.

On other occasions, individuals lending equipment can benefit from creating an agreement to help maintain mutual understanding between both parties. For example, if you rent your carpet cleaning machine to family, friends, or tenants, a contract can outline all the terms and conditions you have while they borrow your items.

LawDepot’s template is available for short-term and long-term rentals to fit both parties’ needs.

Why should I use an Equipment Rental Agreement?

An Equipment Rental Agreement can be essential whether you’re a small business lending heavy-duty equipment or a friend borrowing a chainsaw for a few weeks.

Having an agreement in writing holds both parties accountable for their obligations during the rental period. It can continue to act as evidence should a party have a dispute regarding the contract and take their grievance to court.

An agreement further ensures that all the details of the equipment’s value and insurance requirements are in writing should an incident result in damages or loss.

What can I use an Equipment Rental Agreement for?

Numerous industries or equipment owners can write an agreement to lend out equipment. Examples include, but are not limited to:

Equipment Examples
Vehicles
  • Cars and trucks
  • Moving vans
  • Dump trucks
  • Camping trailers and caravans
  • Motorcycles
Heavy machinery and power tools
  • Farming equipment
  • Landscaping tools
  • Snow removal equipment
  • Skid-steer loaders
  • Compressors
  • Excavators
  • Forklifts
Event equipment
  • Marquees and tents
  • Inflatables for kids’ parties
  • DJ booth and equipment
  • Stage sound and lighting
  • Event and wedding decorations
Electronics
  • Audio devices
  • Soundboards
  • Filming equipment
  • Cameras
  • Computers
  • Monitors
Appliances and furniture
  • Industrial kitchen appliances
  • Catering tools
  • Outdoor grills
  • Upright fridges and freezers
  • Buffet steam tables
  • Dining tables and chairs

Further rental requirements can include medical equipment, theatre props, wardrobe, and more.

How do I write an Equipment Rental Agreement?

LawDepot’s user-friendly template lets you customise an Equipment Rental Agreement for your specific state or territory. Our questionnaire prompts you to include the following information:

1. Equipment details

Giving precise information about the rental item is essential for an agreement. These details are needed in case either party disputes the use and condition of the equipment. You’ll need to include:

  • Equipment description (e.g., year, make, model, serial number)
  • Approximate value of the equipment
  • Equipment use restrictions (e.g., care and management required, proper use)

Providing these details is important to create a strong agreement. Recording the details is also helpful in case the equipment has to be replaced.

2. Rental specifics

It’s crucial to specify each party’s obligations during the rental period. This includes the following:

  • Pick-up or delivery of the rental equipment
  • Return of the equipment
  • Repairs (i.e., specify if the hirer is responsible for maintaining and repairing equipment)

An agreement should also include the total loss. This means the hirer is to reimburse the owner either the casualty value, the market value, or the piece of equipment entirely if the item is lost or damaged. 

Including these key details in your agreement will protect the hirer and owner throughout the rental process and ensure they follow through with their responsibilities.

3. Rental fees 

Next, specify the length of the rental period. It lets the hirer have the rental dates in writing for their scheduling while ensuring the owner gets their equipment back for the next hirer or their personal use. 

Additionally, having the rental fees in writing gives clear instructions for the hirer and can clarify any issues either party may have regarding fees. This includes:

  • Payment frequency (i.e., monthly or weekly)
  • Rental prices
  • Taxes
  • Late payment terms (i.e., grace periods or interest on late fees)
  • Damage deposit

4. Additional rental terms

LawDepot’s Equipment Rental Agreement template allows you to include additional terms that may apply to your agreement, such as:

  • A purchase option that allows the hirer to have the opportunity to purchase the equipment at the end of the rental period
  • A renewal option for the hirer to extend their agreement and rental
  • Assignment options that allow the hirer or owner to transfer the lease to a new party
  • Tax responsibilities for the hirer
  • Any warranties for the equipment (e.g., the hirer agrees that the equipment is for their personal use only or the owner affirms the equipment is in good working condition)

Depending on your jurisdiction and the kind of rental equipment, the hirer may need their own insurance. For example, renting a vehicle or heavy-duty equipment may require insurance for public liability and property damage. Check your state or territory laws for insurance requirements.

5. Party details and signing

To finalise your agreement, include the hirer and owner's name and contact information. You can select a signing date or leave the date open if you don’t have a date set

Related Documents:

  • Bill of Sale: Create a document to transfer ownership or private property between a seller and a buyer.
  • Catering Contract: Outline the terms and conditions of a catering service for events like a wedding, seminar, or school event.
  • Vehicle Leasing Agreement: Create and outline the terms and conditions between a hirer and owner when leasing a vehicle.
  • Sales Agreement: Outline the terms and conditions of a sale when purchasing or selling goods and services.
  • Cleaning Services Contract: Write a contract to determine the terms and conditions for a cleaning service agreement with a client, whether it's for an office building, retail store, or household.
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