Equipment Hire Agreement by EasyLegalDocs
This Equipment Hire Agreement template sets out the terms and conditions for renting equipment from a Lessor to a Lessee. It covers key aspects such as the rental period, payment terms, security deposit, proper use of the equipment, and liability for damage or loss. The agreement also includes a structured dispute resolution process, ensuring clarity on how any disagreements will be handled.
EQUIPMENT HIRE AGREEMENT
This Hire Agreement, hereinafter referred to as the "Agreement", is entered into on [Effective Date] (the “Effective Date”),
BY AND BETWEEN: | [Lessor Name], with an address of [Lessor Address], hereinafter referred to as the “Lessor”. |
AND: | [Lessee Name], with an address of [Lessee Address], hereinafter referred to as the “Lessee”, collectively referred to as the “Parties”. |
WHEREAS, the Lessee intends to hire the following Equipment: [Equipment Type], hereinafter referred to as the "Equipment," and the Lessor agrees to lease the Equipment. THEREFORE, the Parties agree as follows:
RENTAL PERIOD
The rental period for the Equipment is [Rental Period], starting from [Start Date].
RENTAL AMOUNT
The total amount of rent for the period is [Rental Amount] in full before the Equipment is delivered.
DAMAGE AND MISSING PARTS
The Lessee will pay for any damage or missing parts at the end of the rental period.
LATE FEES
The Lessee must pay an additional charge of 0.5 percent of the monthly rent for each one-day delay after the rental period has expired.
SECURITY DEPOSIT
Prior to issuing the Equipment, the Lessee shall pay a security deposit of [Security Deposit] in addition to the rental fee, which shall be returned upon the termination of this Agreement.
PROPER USE
The Lessee is only permitted to use the Equipment according to the laws and regulations and in a careful and proper manner.
DELIVERY COSTS
The Lessee shall be responsible for:
All the costs incurred during the delivery of the Equipment from the Lessor’s place to Lessee’s place at the beginning of the rental period.
All the costs incurred during the delivery of the Equipment from the Lessee to the Lessor's address at the end of the rental period.
INSPECTION
By signing this Agreement, the Lessee acknowledges having inspected the equipment and confirms its good condition and shall return it in the same working condition.
LIABILITY
The Lessee is liable for any loss, theft, fire, or other incident involving the Equipment and must indemnify the Lessor in such an event.
OWNERSHIP
This Agreement should not be interpreted as a transfer of ownership Agreement; the Equipment is the sole property of the Lessor.
ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement between the Parties and supersedes any other form of Agreement. All modifications to these Agreements shall be made in writing signed by both the Parties.
DISPUTE RESOLUTION
Any dispute, controversy, or claim arising out of or relating to this Agreement or its breach, termination, or validity shall be resolved as follows:
Negotiation: The Parties shall first attempt to resolve the dispute amicably through good-faith negotiations. Either Party may initiate negotiations by providing written notice to the other Party, specifying the nature of the dispute. The Parties shall meet within 7 days of receiving such notice to discuss and attempt to reach a mutually acceptable resolution.
This is a preview. The full template is free on GitLaw.
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About this template
What is this template?
This document is a short-form rental contract for physical goods. It includes a specific 0.5 percent daily late fee and a tiered dispute resolution process involving mandatory mediation. It is not a hire-purchase agreement as it explicitly states ownership remains with the Lessor.
When should you use it?
Use this when renting out tools or machinery where the customer handles delivery and a security deposit is required. Use a Supply of Goods Agreement instead if the transaction involves the permanent transfer of title.
What's inside
| Clause | Name | What it does |
|---|---|---|
| RENTAL AMOUNT | Rental Amount | Requires the Lessee to pay the full rental amount before the Equipment is delivered to their location. |
| LATE FEES | Late Fees | Imposes a daily penalty of 0.5 percent of the monthly rent for every day the equipment remains unreturned after expiry. |
| SECURITY DEPOSIT | Security Deposit | Obliges the Lessee to pay a refundable deposit before the Lessor issues the equipment. |
| DELIVERY COSTS | Delivery Costs | Assigns all transportation costs at both the start and end of the rental period to the Lessee. |
| LIABILITY | Liability | Makes the Lessee liable for loss, theft, and fire, requiring them to indemnify the Lessor for any such incidents. |
| DISPUTE RESOLUTION | Dispute Resolution | Mandates a sequence of negotiation, then mediation within 14 days, before proceeding to final binding arbitration. |
Who it's for
- a plant hire business leasing specific machinery to a customer for a fixed period
- an individual hiring tools or specialized equipment where the user pays all transport costs
- a lessor requiring a daily percentage penalty for late returns of physical assets
How long it runs and how it's signed
United States note
This version is drafted for US law generally. Contract, employment and consumer rules vary by state — for example on non-competes and at-will employment. Tell GitLaw which state applies and it adjusts the draft.
Frequently asked questions
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Mostly US and UK law. Some templates use general commercial terms that work across jurisdictions, and many note which law they're written for.
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