MAKE YOUR FREE Equipment Rental Agreement
What we'll cover
What is an Equipment Rental Agreement?
Equipment Rental Agreements are contracts covering the short-term hire of equipment for either business or personal purposes. This Equipment Rental Agreement can be used for a range of purposes, from hiring small technical equipment (eg cameras for photoshoots) to office equipment (eg desk, chairs, or computers), to larger machinery and equipment (eg a forklift or garden equipment).
When should I use an Equipment Rental Agreement?
Use this Equipment Rental Agreement:
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when the provider is a business
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to rent out equipment on a one-off or recurring basis
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to rent equipment to a consumer (ie a private individual) or a business customer
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when the provider (ie the party renting out the equipment), the customer (ie the party renting the equipment), and the equipment are all located in England, Scotland, or Wales
Sample Equipment Rental Agreement
The terms in your document will update based on the information you provide
Equipment Rental Agreement
This contract for the hire of equipment for use for (the Agreement) is made on the date of last signature below between:
PARTIES
- , the party that is providing the equipment (the Provider); and
- , the party that is hiring the equipment (the Customer); together the Parties and each a Party.
AGREEMENT
Meanings
- In this Agreement, the following words are defined:
Data Protection Laws
any applicable law relating to the processing of Personal Data, including but not limited to the GDPR and the Data Protection Act 2018;
Equipment
; Exchange Location ; GDPR
the UK General Data Protection Regulation (2016/679);
Purpose
the reason for the provision of the Equipment for use by the Customer, i.e. ;
Working Day
any day other than a Saturday, Sunday or public holiday in England and Wales.
- In this Agreement, unless the context requires a different interpretation:
- The singular includes the plural and vice versa;
- References to sub-clauses, clauses, schedules or appendices are to sub-clauses, clauses, schedules or appendices of this Agreement;
- A reference to a person includes firms, companies, government entities, trusts and partnerships;
- “Including” is understood to mean “including without limitation”;
- Reference to any statutory provision includes any modification or amendment of it;
- The headings and sub-headings do not form part of this Agreement; and
- "Writing" or "written" will include fax and e-mail unless otherwise stated.
Hire of Equipment
- This Agreement governs the provision of the Services to the Customer by the Provider. The Services include:
- The provision of the Equipment to the Customer for the Purpose.
- The Customer will hire the Equipment (the Hire Period). They may use the Equipment during this time in accordance with the rules set out within this Agreement.
- Provision and return of the Equipment shall be determined by the relevant dates, methods, and locations established by this Agreement and any changes to these must be agreed on by both parties in writing.
Fees to be Paid for the Services
- In exchange for the Services, the Customer will owe the Provider
- The Fees are due.
- Unless explicitly agreed otherwise in this Agreement or elsewhere, the Customer is not responsible for any additional charges that the Provider incurs in carrying out the Services, including but not limited to utility costs, council tax or rent payments, taxes, materials and equipment costs, licensing costs, and legal fees or payments due to third parties being impacted by delivery of the Services; except where such are incurred due to the Customer behaving in breach of this Agreement.
- The Provider and the Customer shall pay all amounts due under this Agreement in full without any deduction except regarding any deductions required by law. Neither Party shall be entitled to assert any credit, set-off, or counterclaim against the other in order to justify withholding payment of any amount due, in whole or in part.
Provider's Obligations
- The Provider is responsible for ensuring that the Equipment is appropriately safe for use by the Customer (including for any people that will be at the Equipment in connection with the Purpose, including any staff members, contractors, or others engaged by the Customer). This includes but is not limited to the Provider abiding by all applicable obligations under health and safety, product liability, and general negligence laws.
- The Provider is responsible for ensuring that the Equipment is suitable for use in the manner provided for in this Agreement. This includes but is not limited to:
- Ensuring that the Provider has the authority to allow the Customer to use the Equipment for the Purpose (e.g. by holding ownership rights in the Equipment and any necessary permissions from any other parties holding rights in the Equipment);
- Except as provided otherwise elsewhere in this Agreement, obtaining, maintaining, and ensuring the suitability of any necessary licences to enable the Equipment to be used (e.g. an operator's licence where the Provider is providing their own staff for use of the Equipment);
- Ensuring the Equipment is suitable for the Purpose and of satisfactory quality for this Purpose;
- Ensuring the Equipment has all necessary features to enable it to be safely used (e.g. emergency stop devices) in accordance with this Agreement by the Customer;
- Ensuring the Equipment has been sufficiently maintained, inspected (where the Equipment may be subject to deterioration), and examined in accordance with statutory examination requirements (e.g. lifting equipment must undergo a 'thorough examination' by a competent person).
- The Provider is responsible for abiding by the law in all regards in the course of their provision of the Services, including but not limited to responsibility for infringements of third parties' rights except where such are due to the conduct of the Customer in contradiction of this Agreement. This includes but is not limited to advertising, data protection, criminal, human rights, anti-bribery and corruption, employment, and personal injury law.
- The Provider commits to providing the Services with reasonable skill and care.
- The Provider commits to providing the Services in accordance with any description of the Services represented by the Provider upon entering and/or prior to entering this Agreement.
- Where the Equipment has been hired in reference to a sample, the Provider commits to providing the Equipment in accordance with any sample quality and without defect which would not be reasonably apparent on the sample.
- The Provider will provide the relevant safety procedure instructions and guidance on safety measures for the use of Equipment.
- The Provider must maintain appropriate business insurance with regard to the Equipment and the Services more broadly.
Customer's Obligations
- The Customer must abide by any reasonable instructions or requests issued by the Provider or anybody acting on behalf of the Provider, when such are issued for the purpose of enabling the Provider to meet their obligations under the law in relation to ensuring the safety of people or property.
- The Customer must only use the Equipment in accordance with the Purpose. Any conduct that would not reasonably be expected in relation to the Equipment is not permitted.
- The Customer is responsible for any harm that is caused to the Equipment and any features or parts of it (except for fair wear and tear) by anybody that the Customer has allowed to be present whilst the Equipment is in use, including staff members, contractors, or others engaged by the Customer.
- Except as qualified elsewhere in this Agreement, the Customer at the end of the Hire Period in the same condition (except for fair wear and tear) it was in at the start of the Hire Period.
- The Customer must maintain any business insurance that's reasonably necessary for them to hold with regard to their use of the Equipment.
- The Customer will abide by the following rules and requirements regarding their use of the Equipment, and is responsible for ensuring that anybody that they allow to use the Equipment does not act in breach of these rules:
- The Customer must ensure the correct safety procedures and measures are followed and the appropriate safety equipment or protective clothing is worn by anyone that the Customer allows to use the Equipment.
- The Customer must ensure that anyone that the Customer allows to use the Equipment does so in accordance with the relevant instructions and guidance given to the Customer by the Provider.
- The Customer will be responsible for obtaining, maintaining, ensuring the suitability of, and providing evidence to the Provider of any qualifications, training, or licences needed by the Customer or anyone other than the Provider that the Customer engages to enable their safe use of the Equipment. For example, an operator's licence to operate goods vehicles.
- The Equipment must not be altered in any way that will persist after the end of the Hire Period.
- If the Customer (or anyone the Customer engages to use the Equipment) would like to use additional features which have been personally sourced (ie not provided by the Provider) in, on or with the Equipment, the Customer must notify the Provider at least 7 Working Days ahead of the day on which the Hire Period begins and the Provider must grant permission for these.
Ending the Agreement
- This Agreement shall continue until the Parties' obligations under the Agreement are discharged unless it is terminated earlier in accordance with the following clauses of this section (i.e. the section headed “Ending the Agreement”).
- Either Party may terminate this Agreement immediately by giving written notice to the other Party if that other Party:
Does not pay any sum due to it under the Agreement within 14 Working Days of the due date for payment;
Commits a material breach of the Agreement which, if capable of remedy, it fails to remedy within 7 Working Days after being given written notice specifying full particulars of the breach and requiring it to be remedied;
Persistently breaches any term(s) of the Agreement;
Is dissolved, ceases to conduct substantially all of its business, or becomes unable to pay its debts as they fall due;
Undergoes a change of control (within the meaning of section 1124 of the Corporation Tax Act 2010); or
(If that Party is an individual) dies or, as a result of illness or incapacity, becomes incapable of managing their own affairs.
- The Customer may terminate this Agreement immediately by giving written notice to the Provider if the Provider:
- Is a company over any of whose assets or property a receiver is appointed;
- Makes any voluntary arrangement with its creditors or (if the Provider is a company) becomes subject to an administration order (within the meaning of the Insolvency Act 1986);
- (If the Provider is an individual or firm) has a bankruptcy order made against it or (if the Provider is a company) goes into liquidation; or
- Is convicted of any criminal offence.
- Neither Party shall be liable for any failure or delay in performing their obligations where such failure or delay results from any cause that is beyond the reasonable control of that Party.
Such causes include, but are not limited to: power failure, Internet Service Provider failure, acts of God, epidemic, pandemic, civil unrest, fire, flood, droughts, storms, earthquakes, collapse of buildings, explosion or accident, acts of terrorism, acts of war, governmental action, any law or any action taken by a government or public authority, including without limitation imposing an export or import restriction, quota, or prohibition, or any other event that is beyond the control of the Party in question.
The Party affected by a circumstance beyond its control shall use all reasonable endeavours to mitigate the effect of the force majeure upon the performance of its obligations.
The corresponding obligations of the other Party will be suspended to the same extent as those of the Party affected by a force majeure event.
If the delay continues for a period of 14 days, either Party may terminate or cancel the Services to be carried out under this Agreement.
- All sums owed to the Provider under this Agreement shall become due immediately on the Agreement's termination, except where provided otherwise within the Agreement.
- Termination or expiry of the Agreement shall not affect any rights, remedies, obligations, or liabilities of the Parties that have accrued up to the date of termination or expiry, including the right to claim damages in respect of any breach of the Agreement which existed at or before the date of termination or expiry.
- Other than as set out in the Agreement, neither Party shall have any further obligation to the other under the Agreement after its termination or expiry.
Liability
- Nothing in this Agreement limits or excludes either Party's liability in any way for:
- Death or personal injury caused by its negligence;
- Fraud or fraudulent misrepresentation;
- Breach of the terms implied by section 2 of the Supply of Goods and Services Act 1982 (title and quiet possession); or
- Any other losses which cannot be limited or excluded by applicable law.
- Except for as set out in the first clause of this section (i.e. the section headed “Liability”) or as a direct consequence of any breaches of the commitments provided by the Parties in the sections headed “Provider's Obligations” and “Customer's Obligations”, neither Party shall have any direct or indirect liability to the other Party, whether in contract, tort (including negligence), for breach of statutory duty, or otherwise, arising under or in connection with this Agreement for:
Loss of profits;
Loss of revenue;
Loss of sales or business;
Loss of agreements or contracts;
Loss of savings or discounts (actual or anticipated);
Loss of or damage to goodwill or to reputation;
Loss of use or corruption of software, data or information;
Any indirect, special or consequential loss.
- The Provider shall not have any liability for loss or damage to property belonging to the Customer or a third party that is present at the Premises by the Customer's election, unless such loss or damage is due to the Provider's negligence or the negligence of the Provider's agents, sub-contractors, consultants, employees, or others working on its behalf.
- Except for as set out in the first clause of this section (i.e. the section headed “Liability”), the total liability of the Provider for any loss experienced by the Customer in respect of any one event or series of connected events due to the Provider's breach of the Agreement shall not exceed £.
- Except for as set out in the first clause of this section (i.e. the section headed “Liability”), the total liability of the Customer for any loss experienced by the Provider in respect of any one event or series of connected events due to the Customer's breach of the Agreement shall not exceed £.
- The terms implied by sections 3 to 5 of the Supply of Goods and Services Act 1982 are, to the fullest extent permitted by law, excluded from this Agreement.
Communication Between the Parties
- The best method of contacting the Provider is via email at . The Customer will as soon as is reasonably practicable and not more than 12 hours following the end of the Hire Period notify the Provider via this communication method of any issues that occur during the Hire Period with regard to the Equipment. Any issues with or concerns about the Services provided will be made known to the Provider as soon as reasonably practicable via this communication method.
- The best method of contacting the Customer is. Any issues with or concerns about the Customer's use or planned use of the Premises will be made known to the Customer as soon as reasonably practicable via this communication method.
- Any notice (other than in legal proceedings) to be delivered under the Agreement must be in writing and delivered by pre-paid first class post to or left by hand delivery at the other Party's registered address or place of business, sent by email to its main business email address, or sent by fax to its main fax number. Notices:
- Sent by post will be deemed to have been received, where posted from and to addresses in the United Kingdom, on the second Working Day and, where posted from or to addresses outside the United Kingdom, on the tenth Working Day following the date of posting;
- Delivered by hand will be deemed to have been received at the time the notice is left at the proper address;
- Sent by email will be deemed to have been received on the next Working Day after sending, provided they were sent to the correct email address and no notice of delivery failure is received; and
- Sent by fax will be deemed to have been received on the next Working Day after transmission.
Privacy
- Each Party commits to complying with Data Protection Laws with regard to Personal Data it receives from the other Party in the course of delivery of the Services. Where one Party supplies the other with Personal Data relating to that Party or to any other individual (including but not limited to contractors and staff members) in the course of the provision of the Services, the recipient Party will comply with the obligations imposed by Data Protection Laws and with that Party's own Privacy Policy and/or data protection procedures.
- For the purposes of this Agreement, 'Personal Data' and 'Processing' shall have the same meaning as in the GDPR.
General
- This Agreement contains the whole agreement between the Parties relating to its subject matter and supersedes all prior discussions, arrangements, or agreements that might have taken place in relation to the Agreement. Nothing in this clause limits or excludes any liability for fraud or fraudulent misrepresentation.
- Neither Party may assign, transfer, sub-licence, or sub-contract to any third party the benefit and/or burden of the Agreement or of any of the rights under this Agreement without the prior written consent (not to be unreasonably withheld) of the other Party.
- No variation of the Agreement will be valid or binding unless it is recorded in writing and signed by or on behalf of both Parties.
- The does not apply to the Agreement and no third party has any right to enforce or rely on any provision of the Agreement.
- Unless otherwise agreed, no delay, act, or omission by a Party in exercising any right or remedy available in relation to this Agreement will be deemed a waiver of that, or any other, right or remedy.
- A provision which by its intent or terms is meant to survive the termination of the Agreement will do so.
- If any court or competent authority finds that any provision (or part) of the Agreement is invalid, illegal, or unenforceable, that provision or part-provision will, to the extent required, be deemed to be deleted, and the validity and enforceability of the other provisions of the Agreement will not be affected.
- Unless specifically provided by the Parties, nothing in the Agreement will establish any employment relationship, partnership, or joint venture between the Parties, or mean that one Party becomes the agent of the other Party, nor does the Agreement authorise any Party to enter into any commitments for or on behalf of the other Party.
- Nothing in the Agreement should be construed as granting the Customer any ownership rights in the property that constitutes the Equipment or in any part of such. They are only granted a temporary right to use the Equipment for the duration of the Hire Period and only on the terms set out in this Agreement.
Jurisdiction
- Except where an exception applies as required by law (e.g. in relation to disputes under consumer law):
- This Agreement will be governed by and interpreted according to the laws of England and Wales.
- All disputes and claims arising under the Agreement (including non-contractual disputes or claims) will be subject to the exclusive jurisdiction of the courts of England and Wales.
The Parties have signed this Agreement on the date(s) below:
About Equipment Rental Agreements
Learn about making your Equipment Rental Agreement
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How to make an Equipment Rental Agreement
Making your Equipment Rental Agreement online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all the information about the equipment hire prepared in advance, creating your document is a quick and easy process.
You’ll need the following information:
The parties
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What are the provider’s name, address, and legal structure? If it’s a company or LLP, what is its company or LLP number?
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Who is the provider’s signatory, if it’s a company, LLP, or partnership? This is the person who will sign the Agreement on the company, LLP, or partnership’s behalf.
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What are the provider’s email address and phone number?
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What are the customer’s name, address, and legal structure? If it’s a company or LLP, what is its company or LLP number?
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What are the customer’s email address and phone number?
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Who is the customer’s signatory, if it’s a company, LLP, or partnership?
Is the customer a consumer?
The equipment hire
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What is the equipment that’s being hired?
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Are different types of equipment being hired?
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Is the customer hiring multiples of the same equipment?
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Is the customer hiring additional parts and/or attachments alongside the main equipment hire?
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Why is the customer hiring the equipment?
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Is the customer hiring the equipment on a one-off or recurring basis?
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When is the customer hiring the equipment?
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Are there specific requirements (that the customer is requesting from the provider or industry-specific provider requirements) for the equipment and/or how the provider manages the hire? If so, what are they?
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Are there specific rules and/or requirements for the customer's use of the equipment? If so, what are they?
Fees and payments
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Will the customer pay a fixed fee or a particular rate per unit of time (eg per day)?
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How much are the fees?
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When must the fees be paid by?
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Are fees inclusive or exclusive of VAT, or is VAT not applicable?
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Does the customer need to pay a deposit?
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If so, how much must they pay?
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When must the deposit be paid by?
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Does the customer need to pay a refundable bond?
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If so, how much must they pay?
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When must the bond be paid by?
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Can the provider charge a penalty fee if the customer uses the equipment for longer than the agreed hire period?
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If so, how much can they charge?
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Will the provider issue an Invoice before a payment is due?
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If not, which payment methods can the customer use to pay the provider:
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Bank transfer? If so, what are the account details?
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Cash?
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Cheque?
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PayPal? If so, what is the email address for the account to be paid?
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Liability and insurance
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What is the provider's maximum liability for a loss the customer experiences due to the provider's breach of the Agreement?
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What is the customer's maximum liability for a loss the provider experiences due to the customer's breach of the Agreement?
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Does the provider have to hold any specific types of insurance during the equipment hire?
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If so, which types of insurance must they hold and what is the insurance cap (ie maximum for a claim or a series of connected claims) for each?
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If the customer is not a consumer: does the customer have to hold any specific types of business insurance during the equipment hire?
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If so, which types of insurance must they hold? For each type, what is the insurance cap?
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Information for the customer
If the customer is a consumer:
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How can they access the provider's Privacy policy? If online, what is the policy’s URL?
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Will the provider provide any after-sales services (eg services following up on the equipment hire in some way)?
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If so, what are they?
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Does the provider follow any codes of conduct?
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If so, which ones and where can they be found?
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How will the provider deal with any complaints from the customer?
Ending the Equipment Rental Agreement
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Can the provider end the Agreement by choice (ie without having to provide a reason)?
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If so, when can they do so?
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Can the customer end the Agreement by choice?
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If so, when can they do so?
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Will the provider return the customer's deposit if the customer ends the Agreement by choice?
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Can the customer reschedule their equipment hire instead of ending the Agreement by choice?
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Note that the provider and customer will always have the option to end the Agreement by choice if the equipment is hired on a recurring basis.
Jurisdiction
Will the laws of England and Wales or the laws of Scotland apply to the Agreement?
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Common terms in an Equipment Rental Agreement
Equipment Rental Agreements help to manage the risks involved in the rental of equipment. To do this, this Equipment Rental Agreement template includes the following terms and sections:
This contract for the hire of equipment for use for…
The Equipment Rental Agreement starts by clearly identifying the parties to the contract and the date on which the Agreement is made.
Definitions
This table sets out the meanings of key terms used within the Agreement. When these terms are used capitalised throughout the Agreement, they carry the meaning they’re given in this table. For example, ‘equipment’, ‘working day’, and ‘purpose’ are defined here.
Hire of equipment
This section sets out the key parameters of the equipment hire. It identifies when the equipment is being hired and sets any requirements for the equipment or the provider’s provision of the equipment (eg regarding staffing services included with the hire).
Fees to be paid for the services
This section gives details of the various payments that may be due under the Agreement. It covers:
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the main fees and when they’re due
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whether a deposit is required and, if so, how much it is, when it’s due, and how it will be dealt with
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whether a bond is required and, if so, how much it is, when it’s due, and how it will be dealt with
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whether the provider can charge a penalty fee if the customer uses the equipment for longer than permitted and, if so, at what hourly rate this can be charged
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how payment should be made (either following the instructions issued in an Invoice or by specified methods, such as bank transfer)
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whether fees are inclusive or exclusive of VAT (or whether VAT is not applicable)
that the customer isn’t responsible for any extra charges (eg the provider’s expenses)
Provider’s obligations
This section details what the provider must do in relation to the equipment hire. For example, they’re generally responsible for ensuring the equipment complies with the law (eg health and safety law) and that their use for the equipment is legally permitted (eg with regard to licensing laws). The provider’s general obligation to maintain appropriate insurance in relation to the equipment and the provider’s provision of it is covered here, and any specific types of insurance that must be held are identified and minimum caps specified.
If the customer is a consumer, this section also contains some of the information that the provider must give the customer in order to comply with consumer law’s information requirements.
Customer’s obligations
This section sets out the customer’s obligations under the Agreement. Customers are always responsible for:
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complying with reasonable instructions from the provider to help the provider comply with the law (eg safety instructions)
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only using the equipment for the specified purpose
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not harming or altering the equipment or anything in them, beyond fair wear and tear
If the customer is not a consumer, the customer’s general obligation to maintain appropriate insurance in relation to the equipment and the purpose for the hire is covered here. Any specific types of insurance that must be held are also identified and minimum caps specified.
Obligations on the customer beyond these are dependent on what you specify.
Ending the Agreement
This section explains when and how the Agreement can end.
Variations situations are set out that allow one party or either party to end the Agreement (eg if a party seriously or persistently breaches the contract, does not pay fees owed, or is dissolved).
If you choose to give the provider, customer, or both the option to end the Agreement by choice (ie without needing a reason), this is set out and the timeframes within which a party must give notice to exercise this right are identified. If the customer can end the Agreement early, the section also identifies whether any deposit paid will be returned and whether rescheduling is also an option.
If the customer is a consumer, this section sets out their consumer cancellation rights.
This section contains a force majeure clause that specifies what happens if the equipment hire cannot take place due to events outside of the parties’ control.
The section also deals with what happens after the Agreement ends (eg all fees or other sums owed will become due immediately).
Liability
This section contains various limitations on liability (ie restrictions on when one party is responsible for losses it causes to the other in relation to this Agreement). For example, a cap is set on each party’s liability in most circumstances and types of loss that the parties generally won’t be liable for are set out (eg indirect loss or loss of profits).
Situations in which parties cannot limit their liability are also highlighted. For example, liability for death or personal injury caused by their negligence.
Communication between the parties
This section identifies the best methods for contacting each party and provides contact details. The requirements for serving legal notices related to the Agreement are also set out. The provider’s procedure for handling customer complaints may also be set out here.
Privacy
This section deals with the parties’ adherence to data protection laws. If the customer is a business customer, it highlights both parties’ commitments to adhering to the law and their own data protection policies and procedures. If the customer is a consumer, it sets out the provider’s obligation to protect the customer’s privacy and identifies where the provider’s Privacy policy can be found.
General
This section deals with various other points of law that govern how this Agreement operates. For example:
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stating that this Agreement is the entire Agreement, ie the Agreement contains all of the Agreement between the provider and the customer (ie there are no additional terms). This helps avoid confusion if, for instance, other terms were in contemplation during negotiations
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restricting how the parties can deal with the Agreement (eg preventing them from assigning their rights or obligations under the Agreement to others without the other party’s permission)
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requiring that any variations to the Agreement be in writing and signed
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excluding the Contracts (Rights of Third Parties) Act 1999 or the Contract (Third Party Rights) (Scotland) Act 2017. This essentially means that third parties (ie not the provider or the customer) that would otherwise be able to enforce obligations under this Agreement under the relevant Act cannot do so
clarifying that the Agreement does not create an employment relationship, partnership, joint venture, or agency arrangement between the parties
Jurisdiction
This section sets out which country’s legal system must be used to resolve any disputes arising in relation to the Agreement (ie the Agreement’s jurisdiction). This is necessary as the legal systems of England and Wales and those of Scotland are different.
A consumer’s ability to enforce some consumer rights within the legal system of other countries of the UK is also noted.
The Parties have signed this Agreement on the date(s) below…
The Equipment Rental Agreement ends with spaces for the provider and customer to both sign the Agreement to make it legally binding.
Schedule 1 - model cancellation form
If the customer is a consumer, this schedule provides a form that the customer may use to exercise their right to cancel the Agreement in accordance with their statutory cancellation rights.
If you want your Equipment Rental Agreement to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review the document for you (or to make the changes for you) to make sure that your modified Equipment Rental Agreement complies with all relevant laws and meets your specific needs. Use Rocket Lawyer’s Ask a lawyer service for assistance.
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Legal tips for renting out equipment
Allocate risk fairly
With certain equipment, especially those used for professional events or business operations, there is a risk of harm, loss, or unexpected events occurring. Contingency plans are essential, as is managing the risks of financial and other losses that could occur if, for example, equipment isn’t available as promised or is damaged by a hirer.
Having an Equipment Rental Agreement is key to assessing and deciding how to allocate these risks. For example, the Agreement prompts you to decide whether the parties must hold certain types of insurance and whether they want to limit their financial liability to each other in the event of a dispute. Both parties should properly consider what they’re committing to when entering into the Equipment Hire Agreement and should evaluate the promises they’re being made in return.
Cover all legal bases
Hiring out equipment can often be a part of a larger event or business operation. There may be multiple service arrangements involved with lots of different parties. Make sure to have comprehensive legal agreements in place for everything, for example:
Moreover, make sure to have plans in place and carried out to abide by other areas of law. For example:
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know which business licences you need and get them sorted (eg goods vehicle operation license)
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follow employment law regarding any contractors, employees, or staff that either the provider or customer might engage to assist with using equipment
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consider practical aspects of the equipment that may impact health and safety, including any equipment-specific health and safety laws that may apply (eg rules on the use of bouncy castles and other inflatables)
Understand when to seek advice from a lawyer
In some circumstances, it’s good practice to Ask a lawyer for advice to ensure that you’re complying with the law and that you are well protected from risks. You should consider asking for advice if:
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any services will be provided alongside the equipment hire
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the customer needs to pay a recurring deposit or you need other alterations to fee structures
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the provider or customer operate in a regulated industry (eg healthcare)
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the provider needs help ensuring they’ve provided the customer with all legally required information
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this Equipment Rental Agreement doesn’t cover everything you want or doesn’t meet your needs
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Equipment Rental Agreement FAQs
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What is included in an Equipment Rental Agreement?
This Equipment Rental Agreement template covers:
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the requirements for the equipment hire
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rules and requirements for the customer’s use of the equipment
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fees, deposits, bonds, penalty fees, and payment methods
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communication between the parties
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the provider’s and customer’s obligations (eg to comply with various laws while providing services)
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privacy considerations
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ending the Agreement
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providing information about the provider’s business and customer’s rights when the customer is a consumer, as required by consumer law
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general legal provisions, such as the Agreement’s jurisdiction
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spaces for the parties to sign the Agreement
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Why do I need an Equipment Rental Agreement?
Hiring equipment can involve many requirements, from technical compliance to health and safety risks. Having a comprehensive contract in place to manage the risks involved in hiring equipment helps ensure that both the party renting out the equipment and the party hiring it are confident in the arrangement. It ensures that both parties have their legal bases covered if something goes wrong and provides clarity in case of disputes.
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What can this Equipment Rental Agreement be used for?
This Equipment Rental Agreement can be used for a wide variety of equipment and purposes. This includes:
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various types of equipment, like:
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smaller technical equipment (eg cameras)
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office equipment (eg desks, chairs, or computers)
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larger vehicles or machinery (eg vans or forklifts)
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equipment hires for private purposes (eg hiring a photo booth for a wedding or a bouncy castle for a birthday party) as well as commercial purposes (eg creative processes, like hiring cameras as video cameras for photoshoots, or business operations, like hiring forklifts to use in a warehouse)
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one-off hires (eg clothing rentals for one event or several events in one week)or recurring hires (eg industrial machinery like combine harvesters used in harvesting seasons)
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What are additional parts or attachments within the Equipment Rental Agreement?
Additional attachments and parts are items that can be added to or are commonly used with the equipment being rented out, which the provider is willing to rent out alongside the equipment in the Equipment Rental Agreement. For example, if a customer is hiring a camera this could include:
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SD cards or UBS cables
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different types of lenses
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a camera bag
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a tripod
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What services can I include within an Equipment Rental Agreement?
The provision of equipment is the main service under this and will always be included in the Agreement. However, providers can include additional services within the Agreement, based on business-specific services or customer needs. These can include:
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delivery of the equipment to the customer at the exchange location
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set-up of the equipment to make it ready for use by the customer
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packing of the equipment after the customer’s use
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any industry-specific or customer services agreed upon by both parties (eg developing the photographs from any film reel the customer uses)
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How can the equipment be distributed to the customer?
You can choose whether you will deliver the equipment to the customer and then collect it at the end of the hire period, or if the customer will pick up and return the equipment to you.
The Equipment Rental Agreement asks for an exchange location, which is the place where the provider and customer will meet to exchange the equipment at the start and end of the hire period. This could be at the provider’s or customer’s premises, or somewhere else.
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What information does the provider need to give the customer?
A business is legally required to provide its potential customers with certain information, usually before they form a contract with that customer. When the customer is a consumer (ie somebody not acting in the course of business), certain additional information must be provided.
Exactly what’s required depends on whether the contract is being made on the business’s (ie the provider’s) premises or remotely, and on the nature of the business and the contract. Examples of things that consumers must be given information about include:
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how they will enter into a contract
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the services or goods involved and the fees to be paid for them
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the business that they’re entering into a contract with
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the business’s complaints handling procedure
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the customer’s consumer cancellation rights
This Equipment Rental Agreement incorporates the key information required by the law. However, the provider should always check that they’re providing all necessary information with regard to the way in which they’re forming their contract and the nature of their business.
For more information, read Doing business with consumers, Consumer rights, and Online business regulations. Ask a lawyer for assistance if you need help ensuring you’ve met the relevant information requirements.
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Do I need to make terms and conditions alongside this Equipment Rental Agreement?
Generally, no. This Equipment Rental Agreement is designed to be used as a standalone contract that does not need to refer to external terms and conditions.
The key information and provisions that are generally covered by standard terms and conditions are addressed and included in this Agreement. However, if you’re entering the Agreement as a business that usually relies on its own standard terms, you can Ask a lawyer for help adapting your Equipment Rental Agreement to incorporate your normal terms and conditions.
For more information, read Terms and conditions.
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What are after-sales services?
After-sales services are a set of operational support services the business provides after the Equipment Rental Agreement has been signed. For example, services following up on the equipment hire in some way.
If you provide after-sale service to consumers, you must generally communicate this and any conditions of the after-sales services to the customer before they make a purchase. This is part of the information requirements businesses must comply with in consumer contracts and is used to enhance customer satisfaction.
You can include such after-sale services within the Equipment Rental Agreement to ensure that you won’t need to provide external terms and conditions in addition to the Agreement. Ask a lawyer if you have any questions or concerns about after-sale services.
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What do the fees include?
This is up to you! The Equipment Rental Agreement provides an opportunity for the parties to specify exactly what’s included with the equipment hire. For example, the provider may be obliged to provide certain personnel (eg forklift drivers), licences, additional parts and attachments, or anything else as part of the services they’re providing by renting the equipment to the customer. Remember to consider which after-sales services you will be including within the Equipment Rental Agreement when determining the fees. Whatever you state is included with the hire should be covered by the fees you set.
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Does the Equipment Rental Agreement set rules and requirements for the provider and customer?
The Equipment Rental Agreement outlines certain key rules for each party. For example, the provider has default responsibility for adhering to most applicable legal requirements (eg health and safety laws and licensing laws).
When you make your Agreement, you can choose to impose any other rules you like. For example, you could state that the customer rather than the provider is responsible for obtaining necessary business equipment and tool licenses.
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Can I include any terms that I like in this Equipment Rental Agreement?
While you have flexibility about the terms you include in your Equipment Rental Agreement, you must comply with all applicable laws.
You must make sure that any terms you include in a contract are not manifestly unfair or unreasonable, particularly when one of the parties to the contract is a consumer (ie somebody not acting in the course of business). A term may be considered unfair if it causes a significant imbalance in the obligations or rights of the parties, to the consumer’s detriment. If both parties are businesses, there would need to be a significant imbalance for a term to be considered unreasonable. Unreasonable or unfair terms may not be legally binding. You can Ask a lawyer if you need help establishing whether a term you want to set is reasonable and fair.
It’s important to keep this in mind when creating a variety of the terms you can include in your Equipment Rental Agreement. For example, ensure that the terms you’re creating are fair and/or reasonable when you’re limiting a party’s liability, stating when they can end the Agreement, and setting general rules or requirements for a party.
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