Free Equipment Hire Agreement

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Equipment Hire Agreement

Signing Details

Signing Details

Your Equipment Hire Agreement

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


______________________ of _________________________________
(the "Owner")


- AND -

______________________ of _________________________________
(the "Hirer")


(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 20 May 2024 and will continue until 20 May 2024 (the "Term").
  7. Rent
  8. The rent, inclusive of VAT, will be paid in instalments of £____________ each month, in advance, beginning on 20 May 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:



  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 ________________, ________


______________________ (Owner)


______________________ (Hirer)

Last Updated April 12, 2024

What is an Equipment Hire Agreement?

An Equipment Hire Agreement is a contract used between two parties in which one rents equipment to the other. The contract details the expectations and roles of both parties, such as payment details, who is responsible for maintaining the equipment during the rental period, and more.

LawDepot's Equipment Hire Agreement template can be used in England, Scotland, Wales, and Northern Ireland.

An Equipment Hire Agreement is also known as a/an:

  • Equipment Rental Agreement
  • Equipment Lease Agreement
  • Equipment Loan Agreement
  • Heavy Equipment Lease Agreement

Who are the parties in an Equipment Hire Agreement?

There are two parties in an Equipment Hire Agreement:

  • The owner: either an individual or company (such as a contractor or a commercial cleaning business) that owns and rents out the equipment
  • The hirer: either an individual or organisation (for example, a homeowner or a housekeeper) that rents the equipment from the owner

What is addressed in an Equipment Hire Agreement?

An Equipment Hire Agreement outlines:

  • The value and identifying characteristics of the equipment (like a serial number)
  • Any restrictions on how the equipment may be used
  • Whether the equipment hirer will maintain and repair the equipment, and replace damaged or lost equipment
  • What purpose or job the equipment will be used for (such as for excavation in a particular location)
  • How the equipment will be delivered and returned
  • How much the rental will cost and how the owner will be compensated
  • Whether the equipment hirer will provide a damage deposit and/or obtain insurance to cover the equipment
  • How long the lease will be (for example, for a single job or a specific period like three months)
  • Whether the hirer will have the option to purchase (rent-to-own) the equipment

Who should use an Equipment Hire Agreement?

Anyone providing an equipment rental service (such as heavy equipment rentals) should consider using an agreement to help them clearly define the terms and expectations of the rental with anyone renting equipment from them.

You can also use an agreement if you want to rent equipment from an individual, like a friend or family member, and they don't have an existing agreement for you to sign. Having a written equipment lease agreement that outlines the terms of the equipment rental will help ensure that both parties are aware of their rights and responsibilities. It can also help prevent any disputes that might arise.

Some of the individuals and organisations that typically use an equipment rental agreement include:

  • Residential, commercial, or municipal construction companies or contractors (real estate developers, general contractors, small renovation contractors, etc.)
  • Residential or commercial cleaning service providers (housekeepers, carpet cleaning companies, apartment cleaning companies, etc.)
  • Agricultural companies and farmers
  • Recreation organisations or contractors (party planners, special event coordinators, etc.)
  • Any small business owners needing to rent equipment (photographers, landscapers, small restaurant managers, etc.)

What types of equipment can be leased in an Equipment Hire Agreement?

Any type of machine or tool can be leased with an Equipment Hire Agreement. This includes:

  • Heavy machinery (construction vehicles such as dozers, excavators, forklifts, etc.)
  • Cleaning tools (automotive cleaning equipment, industrial vacuums, steam cleaners, etc.)
  • Agricultural tools (tractors, ploughs, backhoes, etc.)
  • Recreational equipment (cameras, sporting goods, barbeques, tents, etc.)
  • Appliances (fridges, freezers, etc.)
  • Medical devices (lift chairs, wheelchairs, etc.)
  • Office equipment (air purifiers, printers, etc.)

Related Documents:

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