Get exclusive money-saving offers and guides
Straight to your inbox
By signing up, you agree to the Finder
Privacy & Cookies Policy
and
Terms of Use, Disclaimer & Privacy Policy.
Free wet hire agreement templates (Australia)
Hire out your equipment and protect it with a wet hire agreement.
Legal Advice And Services
Document Templates
Free Quotes
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
As an equipment and machinery owner, you understand how important it is to keep these items in the best shape possible. You can't hire out damaged goods. Your clients want functional equipment, but they may not be as knowledgeable on how to use, handle or operate it. This is why a wet hire agreement is useful. It lets you hire out your equipment together with the personnel to handle and operate it.
What's in this guide?
What is a wet hire agreement?
This is a legal document that sets out the terms for hiring out equipment, machinery or vehicles together with the personnel for handling them. These agreements are useful for companies offering specialist equipment for hire, such as audio visual equipment. The party hiring the equipment does not need to go looking for professionals to handle and operate the equipment as you will be supplying it, and everything will be laid out in one document.
When should I use a wet hire agreement?
You should use a wet hire agreement when you want to hire out your equipment to another business including the services it requires, but are concerned about its maintenance. This agreement is especially useful when hiring out electronic items, delicate machinery or equipment that requires skilled staff to operate. This agreement makes it possible for you to serve clients while safeguarding your assets from unnecessary damage.
Consider these examples. You own audio visual equipment that you want to hire out to an events company. This equipment has to remain in quality condition to serve its purpose. If you hire it out to a company that then looks for a third party to handle and operate it, you cannot guarantee this person will do it carefully and efficiently. But if you use a wet hire agreement, you rest assured that your equipment will be handled by your own trained staff.
Wet hire agreement vs dry hire agreement
Dry hire agreements set out the terms for hiring out equipment without operators. The company hiring out does not provide professionals to operate the equipment. Instead, the business hiring the equipment has to go out and look for third parties who are competent enough to operate the equipment.
For example, if you have an excavator, you can rent it out either as a product on its own (excavator only) or as a product plus service (excavator and operator). In the first case, you will use a dry hire agreement. In the second, you will use a wet hire agreement.
What does a wet hire agreement include?
A well-written wet hire agreement includes several key components. They include:
- Names of parties entering into the hire agreement
- Definition of terms
- A description of the equipment being rented out (includes details on its condition before hiring)
- Time period for hiring the equipment. Many companies have a minimum hiring period.
- Payment terms. Includes the amount the hiree will pay for using the equipment and how this payment will be made.
- Obligations of the hirer. Usually, they include:
- Ensuring equipment is in good working condition at the start of the hire period
- Offering labour personnel who are well trained to handle the equipment
- Carrying out servicing and maintenance of the equipment in accordance with manufacturer specifications during the hire period.
- Obligations of the hiree. These are usually to bar third parties from operating the equipment and to accept responsibility for safely storing the equipment.
- Provisions on liability and indemnity. As the owner of the equipment, you will want to limit your liability for damages occasioned by equipment breakdown or failure. You will also want to distance yourself from liability arising from accidents caused by improper handling of equipment.
- Applicability of the Personal Property Securities Act to the agreement.
What does a wet hire agreement not include?
This agreement does not include terms to the effect that the equipment's ownership shifts from the hirer to the hiree. A wet hire agreement is not a sale agreement. Even during the hire period, the hirer retains exclusive ownership of the property. The hiree cannot sell, charge, offer, assign or pledge the equipment.
How effective is a wet hire agreement?
This agreement is effective in protecting an owner's equipment from negligent or reckless use by third parties. It guarantees that, while property is hired out, it remains in the capable and competent hands of the owner's staff. Third parties are strictly restricted from operating the equipment, limiting the risk of losses from damage.
Do I need a lawyer for a wet hire agreement?
Yes. A wet hire agreement is a complex legal document and it can give rise to significant liability. If you get certain terms wrong, such as the equipment's description at the beginning of the hire period, you could compromise your right to indemnity for damage. Furthermore, provisions on issues like liability, insurance and indemnity are best written by a competent lawyer to prevent costly errors.
You can use a template to write a wet hire agreement and then have a lawyer review it.
Get access to customisable wet hire agreement templates online
Does your company belong in this list?
How do I write a wet hire agreement?
To write a wet hire agreement, download a template from one of the sources below, follow the prompts and customise it for your own business. Exercise extra caution when filling in details on the condition of your equipment prior to hiring and also on provisions relating to parties' obligations, liability and indemnity.
If you do not have legal background, you will need a lawyer to guide you through writing a wet hire agreement. Involving a lawyer will ensure you do not inadvertently make errors that prove costly later on.
Where to get free legal documents and templates like a wet hire agreement
There are online legal resources that offer small businesses free legal document templates that are downloadable and customisable. They include:
- Lawpath. Grants access to hundreds of legal documents free for subscribed members. Subscriptions are renewable monthly for as low as $24.
- Sprintlaw. A 100 percent online law firm, Sprintlaw has a wet hire agreement package that includes the legal document and tailored counsel from one of its lawyers.
- LegalVision. This platform combines access to legal documents with standby legal counsel and offers the two as a package to its subscribers. Monthly subscription fee is $199.
More guides on Finder
-
How to start a wallpaper business
Equip yourself with the right know-how to open your own wallpaper business.
-
How to start an ebook writing business
Start your own eBook writing business with our guide to the skills, equipment and legal documents you’ll need.
-
How to start an auto mechanic business
How to start an Auto Mechanic Business from scratch, from the equipment, licences to the skills you’ll need.
-
How to start a remote IT business
Here’s how to go about starting a remote IT business to offer installation, servicing and maintenance support to both businesses and households.
-
How to start a delivery business
The skills, equipment and legal documents needed to start a delivery business.
-
How to start an auto repair shop
The ABCs of starting an automotive repair business.
-
How to start a mechanic business
Learn how you can get started on your journey to a profitable career as a mechanic.
-
How to start a garden edging business
Find out the steps to opening a garden edging business.
-
How to start an upholstery cleaning business
Here’s your straightforward guide to setting up your new upholstery cleaning venture for success.
-
How to start a pet sitting business
Do you love working with animals? Find out how to start your pet sitting business.
Ask an Expert
