Equipment Hire Agreement

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Get expert legal advice on your hire agreement

We know that a clear and comprehensive hire agreement is vital to the success of your business. Our expert commercial lawyers provide specialist advice, fast turnarounds, and fixed-fee online legal services to ensure your hire business terms are precise, clear, and legally sound, giving you peace of mind and protecting your interests.

Located in Sydney and serving clients across Australia, we take pride in delivering high-quality legal services tailored to your needs. Whether you’re a startup or an established business, our experience in drafting equipment hire agreements and providing tailored legal advice ensures your operations are backed by the best protection and clarity. Get your equipment hire agreement sorted today.

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On this page…

>  1) What is an equipment hire agreement?

>  2) When should I use a hire agreement?

>  3) What are the key terms to include in a hire agreement?

>  4) Hire agreements: key takeaways

What is an equipment hire agreement? 

An equipment hire agreement is frequently used by Australian businesses and is necessary in ensuring both parties are clear on the terms and conditions of the loan of that equipment.

In such agreements, the owner of the property lends its property to a party called the hirer. By outlining things like late fees, return dates, and usage restrictions, an equipment hire agreement can help preventing any confusion or disputes down the road. If you own an equipment hire business such as building equipment, tools, motor-vehicles, wedding-hire, inflatables, jumping castles, soft play, other event hire equipment, or any other type of equipment, this article is for you.

When should I use a Hire Agreement?

A hire agreement is essential whenever your business leases equipment to clients or other businesses. This contract clearly outlines the terms of use, responsibilities, and liabilities, protecting both parties and ensuring smooth operations. Implementing a well-drafted hire agreement helps prevent misunderstandings and legal disputes, protecting your assets and business interests.

Here are some examples of when it’s used:

Construction equipment rental

Leasing machinery such as excavators, cranes, or bulldozers to contractors for specific projects. A hire agreement defines the rental period, maintenance responsibilities, and liability for damages, ensuring both parties are aware of their obligations.

Event equipment hire

Providing items like marquees, sound systems, or lighting for events. The agreement specifies setup and dismantling times, usage guidelines, and procedures for handling any potential damages, ensuring a smooth event execution.

Medical equipment leasing

Supplying hospitals or clinics with diagnostic machines or surgical tools. A hire agreement outlines the maintenance schedules, calibration requirements, and compliance with health regulations, ensuring the equipment remains in optimal condition.

Office equipment rental

Offering computers, printers, or furniture to businesses on a temporary basis. The agreement details the rental duration, usage policies, and procedures for technical support, providing clarity and support for the lessee.

Vehicle hire services

Renting out cars, trucks, or specialty vehicles for personal or commercial use. A hire agreement covers insurance requirements, mileage limits, and responsibilities in case of accidents, ensuring both parties understand their rights and obligations.

What key terms are included in a hire agreement?

When entering into an equipment hire agreement, there are a few key terms that should be included in order to protect both parties involved. These include, but are not limited to:

1. Parties’ details;
2. Equipment description;
3. Hire details: hire period, possibility of extension, return of equipment, refund policy (if any);
4. Fees and payment terms;
5. Use, operation and maintenance;
6. Disclaimer;
7. Warranties;
8. Indemnity;
9. Taxes;
10. Loss, damage or breakdown;
11. Insurance.

Key takeaways

An equipment hire agreement is an important legal document that should be used when hiring any type of equipment. The agreement should include key terms and conditions, as well as the responsibilities of both the hirer and the owner of the equipment. 

By using a hire agreement, both parties can rely on a written agreement in case of any disputes, issues or accidents.