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When your business is providing a lending service, you want a guarantee that the service and process are respected. The best way to do this is to have a signed contract that's honoured by law.
The following guide will show you how to obtain free templates and how to write an equipment hire agreement, ensuring you have peace of mind and are covered in the eyes of the law.
What's in this guide?
- What is an equipment hire agreement?
- When should I use an equipment hire agreement?
- Equipment hire agreement vs purchase agreement
- What does an equipment hire agreement include and not include?
- How effective is an equipment hire agreement?
- Do I need a lawyer for an equipment hire agreement?
- Get access to customisable Equipment Hire Agreement templates online
- How do I write an equipment hire agreement?
- Where to get free legal documents and templates like an Equipment Hire Agreement
What is an equipment hire agreement?
Simply put, an equipment hire agreement is a document that both a provider and lender of physical goods enter into. The document should outline clear obligations, terms and conditions that both parties should adhere to. This allows both the provider and lender to know exactly where they stand before the goods are handed over.
When should I use an equipment hire agreement?
You should use an equipment hire agreement whenever you're lending goods to somebody outside of your company. The agreement provides clear guidelines and obligations to the lender and will allow for a drama-free lending process. If any legal action has to be taken further down the line, then an equipment hire agreement can be used as evidence for the agreed terms and conditions.
Equipment hire agreement vs purchase agreement
Both of these agreements can often seem like very similar documents, but in reality, they are completely different.
A borrower and a lender will enter into an equipment agreement, where the physical goods are agreed to be returned after a certain amount of time. However, a purchase agreement is made between a buyer and seller, where the ownership of the physical goods changes hands.
What does an equipment hire agreement include and not include?
What is included in an equipment hire agreement?
An equipment hire agreement covers all of the terms and conditions stated by the lender, and then agreed to by the borrower. These terms and conditions can cover things such as:
- The hire period. How long the borrower will use the equipment before they are obliged to return it.
- Payment. An agreed method and amount the lender is required to pay for the lending of said equipment.
- Use, operation and maintenance. This is an agreement that equipment should not be used by anyone other than the agreed user.
- Loss and damage. The hirer will be responsible for any loss or damage to the equipment irrespective of how the loss or damage occurred, excluding wear and tear.
- Repossession. An agreement that the lender can and will repossess the equipment if the hirer breaches any of the terms and conditions stated in the agreement.
What is not included in an equipment hire agreement?
Very little is excluded from an equipment hire agreement, especially when it comes to terms and conditions. A thorough and correctly written equipment hire agreement is designed to cover any legal loopholes that may occur further down the line.
How effective is an equipment hire agreement?
Equipment hire agreements are seen as extremely effective, from both the lender's and borrower's point of view. This primarily comes from the fact that equipment hire agreements are subject to the principles of contract law.
If a company is lending the equipment to a single borrower, then this equipment hire agreement is covered by Australian Consumer Law. If the equipment is being lent over a more extended period, it is then covered by the Personal Property Securities Act 2009.
Do I need a lawyer for an equipment hire agreement?
A lawyer is not needed to produce an equipment hire agreement. Hirers can write up their own agreements by using an equipment hire agreement template and then overlay their own terms and conditions as they wish.
Although hiring a lawyer to look over your equipment hire agreement will bring you peace of mind, and allow you to follow the procedures with confidence, it is not a legal necessity.
Get access to customisable Equipment Hire Agreement templates online
Does your company belong in this list?
How do I write an equipment hire agreement?
Writing an equipment hire agreement can seem like a daunting task, yet with the right research and critical points, it will come with ease.
Accessing an equipment hire agreement template in Australia is extremely simple and will save you a lot of time and effort. When using a template, lenders simply have to write out the specifics of their own business, such as the type of equipment they are hiring out and terms and conditions in which they wish to hire it.
Where to get free legal documents and templates like an Equipment Hire Agreement
Free legal documents and templates like equipment are widely available from a variety of online sources. Websites such as Lawpath and Wonder.Legal will provide you with several free services.
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