Free Equipment Hire Agreement

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Equipment Hire Agreement

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Heavy machinery or tools
Event equipment
Appliance or furniture
Other equipment




Your Equipment Hire Agreement

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EQUIPMENT HIRE AGREEMENT

THIS EQUIPMENT HIRE 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 5 December 2024 and will continue until 5 December 2024 (the "Term").
  7. Rent
  8. The rent, inclusive of VAT, will be paid in instalments of £____________ each month, in advance, beginning on 5 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 the United Kingdom 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. The Hirer is entitled to the protection and remedies available to them under the Consumer Credit Act 1974.
  42. Entire Agreement
  43. 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.
  44. Address for Notice
  45. Service of all notices under this Agreement will be delivered personally or sent by registered mail or courier to the following addresses:

    Owner:

    Hirer:

  46. Payment
  47. All pound amounts in this agreement refer to pounds sterling, and all payments required to be paid under this Agreement will be paid in pound sterling unless the Parties agree otherwise.
  48. Interpretation
  49. 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.
  50. Governing Law
  51. This Agreement will be construed in accordance with and governed by the laws of England and the Parties submit to the exclusive jurisdiction of the English courts.
  52. Severability
  53. If there is a conflict between any provision of this Agreement and the applicable legislation of England (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.
  54. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, those provisions to the extent enforceable and all other provisions will nevertheless continue to be valid and enforceable as though the invalid or unenforceable parts had not been included in this Agreement and the remaining provisions had been executed by both Parties subsequent to the expungement of the invalid provision.
  55. General Terms
  56. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  57. Time is of the essence in this Agreement.
  58. 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.
  59. 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.
  60. Notice to Hirer
  61. 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 Hire Agreement?

An Equipment Hire Agreement is a contract that sets out the terms between the hirer and the owner when lending specialty equipment or items.  It outlines both parties' responsibilities, fees, and specific requirements during the rental period.

An Equipment Hire Agreement is also known as an:

  • Equipment rental contract
  • Equipment rental agreement
  • Equipment lease agreement
  • Heavy equipment lease agreement
If you’re looking for a more specific rental agreement for lending or borrowing vehicles, use LawDepot’s Contract Hire Agreement for a more detailed agreement.

Who can use an Equipment Hire Agreement?

An Equipment Hire Agreement can benefit businesses and individuals in various situations.

For example, you can use this kind of agreement if you run a business that lends special equipment (e.g., parties, events, construction, and cleaning equipment). Creating an agreement will establish the terms you and the renter must abide by.

Additionally, individuals lending equipment can benefit from creating an agreement to help maintain mutual understanding between both parties. For example, if you lend your van to friends, family, or tenants, a contract can outline all the terms and conditions you have while they borrow the vehicle.
 
LawDepot’s template is available for short-term and long-term rentals to fit both parties’ rental needs in England, Scotland, Wales, and Northern Ireland.

Why should I use an Equipment Hire Agreement?

An Equipment Hire Agreement can be essential whether you’re a small business lending construction equipment or a neighbour letting someone nearby borrow your generator 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 one party not keep up their side of the contract and the other has to 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 Hire Agreement for?

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

Equipment Examples
Vehicles
  • Cars and trucks
  • Van hire
  • Camping trailers and caravans
  • Motorcycles
Heavy machinery and power tools
  • Farming and agricultural equipment
  • Gardening and landscaping tools
  • Construction equipment
  • Plant equipment
  • Compressors
  • Generators
  • Excavators
  • Forklifts
Event equipment
  • Marquee or event tents
  • Inflatables for kids’ parties
  • DJ booth and equipment
  • Stage sound and lighting
  • Event and wedding decorations
  • Photobooths
Electronics
  • Filming and video equipment
  • Audio equipment
  • Soundboards
  • Cameras
  • Computers
  • Monitors and screens
Appliances and furniture
  • Industrial kitchen appliances
  • Catering and bar accessories
  • 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 Hire Agreement?

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

1. Equipment details

Providing 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, and serial number)
Approximate value of the equipment
Equipment use restrictions (e.g., care and management requirements, proper use)

Giving as much detail as possible is essential for creating a solid 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 (e.g., is the renter responsible for maintaining and repairing equipment?)

An agreement should also include the total loss. This means the renter 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 critical details in your agreement will protect the renter and owner throughout the rental process.

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 renter or their personal use. 

Additionally, having the rental fees in writing gives clear instructions for the renter and can help rectify 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 Hire Agreement template allows you to include additional terms that may apply to your agreement, such as:

  • A purchase option that allows the renter to have the opportunity to purchase the equipment at the end of the rental period
  • A renewal option for the renter to extend their agreement and rental
  • Assignment options that allow the renter or owner to transfer the lease to a new party
  • Tax responsibilities for the renter
  • Any warranties for the equipment (e.g., the renter 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 renter 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 jurisdiction for any insurance requirements applicable to your rental. 

5. Party details and signing

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

Related Documents:

  • Contract Hire Agreement: Create and outline the terms and conditions between a hirer and owner when leasing a vehicle.
  • Bill of Sale: Create a document to transfer ownership or private property between a seller and a buyer.
  • Sales Agreement: Outline the terms and conditions of a sale when purchasing or selling goods and services.
  • Catering Contract: Outline the terms and conditions of a catering service for events like a wedding, seminar, or school event.
  • Cleaning Services Agreement: 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.
  • Service Agreement: Create a contract tailored to a business relationship between two parties.
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