Owner-Operator Lease Agreement Template

Owner-Operator Lease Agreement Template

This Owner-Operator Lease Agreement (“Agreement”) is made as of [Date] between:

Motor Carrier / Company (“Carrier”)
Legal Name: [Carrier Legal Name]
Entity Type: [Entity Type]
Address: [Street Address]
City, State/Province, ZIP/Postal Code, Country: [City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Carrier”)

and

Owner-Operator (“Contractor”)
Name or Business Name: [Owner-Operator Legal Name]
Address: [Street Address]
City, State/Province, ZIP/Postal Code, Country: [City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]
Tax ID / SSN / EIN: [Tax ID]

(“Contractor”).

Carrier and Contractor may be referred to individually as a “Party” and together as the “Parties”.

1. Purpose and Relationship

1.1 Purpose. Contractor agrees to provide motor vehicle equipment and driving services to Carrier for the transportation of freight, and Carrier agrees to use Contractor’s services, on the terms set out in this Agreement.

1.2 Independent Contractor Status. The Parties intend that Contractor is an independent contractor, not an employee, agent, or partner of Carrier. Nothing in this Agreement is to be interpreted as creating an employment relationship, joint venture, or partnership.

1.3 Authority. Carrier holds or uses transportation authority under applicable law and regulations. Contractor agrees to operate under Carrier’s authority only as permitted by this Agreement and applicable law.

2. Equipment Description

2.1 Primary Truck / Tractor. Contractor makes available to Carrier the following equipment (the “Equipment”):

• Unit Type: [Tractor / Straight Truck / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• VIN: [VIN]

• License Plate Number and State/Province: [Plate Number and Jurisdiction]

2.2 Additional Equipment. If applicable, the Equipment includes:

• Trailer Type and Number: [Trailer Description]

• Other Equipment: [Reefer Unit / Liftgate / Chains / Straps / Tarps / Dollies]

2.3 Ownership. Contractor represents that Contractor is the legal owner or authorized lessee of the Equipment and has the right to enter into this Agreement.

3. Term and Territory

3.1 Term. This Agreement begins on [Start Date] and continues until [End Date] or until terminated under Section 13.

3.2 Territory. Contractor may be dispatched to haul loads within the following territory: [Territory Description]. Contractor agrees to operate within this territory and any additional areas mutually agreed in writing.

4. Use, Possession, and Control

4.1 Exclusive Possession and Control for Regulatory Purposes. For regulatory purposes, Carrier may be considered to have exclusive possession, control, and use of the Equipment during trips dispatched by Carrier, as required by applicable law. This does not change the independent contractor relationship between the Parties.

4.2 Dispatch and Acceptance of Loads. Carrier may offer loads to Contractor, and Contractor may accept or decline such loads in accordance with Carrier’s dispatch policies: [Dispatch Policy Summary].

4.3 Identification and Markings. Contractor shall display Carrier’s required identification, placards, or markings on the Equipment when operating under Carrier’s authority and shall remove or cover them promptly when not operating for Carrier.

5. Compensation and Settlements

5.1 Compensation Basis. Carrier shall compensate Contractor for services performed under this Agreement on the following basis:

• Rate Type: [Per Mile / Percentage of Revenue / Flat Rate / Other]

• Base Rate: [Rate Details]

• Accessorial Pay: [Detention / Layover / Stop Pay / Other]

5.2 Payment Schedule. Carrier shall prepare settlement statements and pay Contractor on the following schedule:

• Settlement Frequency: [Weekly / Biweekly / Other]

• Payment Method: [Direct Deposit / Check / Other]

5.3 Settlement Details. Each settlement statement shall show at least:

• Loads or trips covered;

• Gross revenue or rates;

• Deductions and chargebacks;

• Net amount due to Contractor.

6. Deductions and Chargebacks

6.1 Permitted Deductions. Carrier may deduct from Contractor’s settlements only those amounts authorized in this Agreement or in a signed written addendum, including:

• Advances paid to Contractor;

• Fuel, tolls, or other items Carrier agreed to pay on Contractor’s behalf;

• Insurance premiums paid by Carrier for Contractor’s benefit;

• Fees, fines, or damage costs attributable to Contractor under this Agreement.

6.2 Notice of Deductions. All deductions shall be itemized on the settlement statement. Contractor may request reasonable supporting documentation.

6.3 Negative Balances. If deductions exceed earnings in any period, the deficit may be carried forward and deducted from future settlements, or invoiced to Contractor, as permitted by law.

7. Escrow / Reserve (If Used)

7.1 Escrow Account. If the Parties agree to an escrow or reserve account, Carrier may withhold the following amount from settlements:

• Escrow Amount: [Currency and Amount]

• Escrow Funding Method: [Per-Mile / Per-Load / Flat Amount Per Settlement]

7.2 Use of Escrow. Escrow funds may be applied to unpaid obligations of Contractor under this Agreement, including damage, unpaid deductibles, and unreturned equipment, as permitted by law.

7.3 Return of Escrow. Any remaining escrow balance shall be returned to Contractor within [Number] days after termination of this Agreement and settlement of all outstanding obligations.

8. Fuel, Tolls, and Operating Expenses

8.1 Contractor Expenses. Unless otherwise stated, Contractor is responsible for:

• Fuel and DEF;

• Oil and routine fluids;

• Tolls, scales, and parking;

• Permits not specifically paid by Carrier;

• Communications and related operating expenses.

8.2 Carrier Programs. If Contractor participates in Carrier’s fuel card, toll, or discount programs, Contractor authorizes Carrier to deduct related charges from settlements as set out in Section 6.

9. Insurance and Liability

9.1 Carrier Insurance. Carrier will maintain primary liability insurance required for operation under its authority when Contractor hauls loads dispatched by Carrier. Coverage details: [Carrier Coverage Summary].

9.2 Contractor Insurance. Contractor shall maintain at Contractor’s expense:

• Physical damage insurance on the Equipment: [Coverage Limits / Deductible];

• Non-trucking or bobtail liability (if required): [Coverage Details];

• Occupational accident or workers’ compensation coverage (if required): [Coverage Details].

Proof of coverage shall be provided to Carrier and kept current.

9.3 Cargo and Claims. Carrier will maintain cargo insurance as required under its authority. Contractor is responsible for losses, shortages, or damage to cargo to the extent caused by Contractor’s negligence, misconduct, or violation of instructions, subject to law and any applicable coverage.

9.4 Indemnity. To the extent permitted by law, Contractor shall indemnify and hold Carrier harmless from losses, claims, or liabilities arising from Contractor’s negligence, violation of law, or breach of this Agreement, except to the extent caused by Carrier’s own negligence or willful misconduct.

10. Maintenance, Inspection, and Safety

10.1 Maintenance Responsibility. Contractor is responsible for maintaining the Equipment in safe, roadworthy condition and in compliance with all applicable inspection and maintenance requirements.

10.2 Inspections. Contractor shall perform and document required pre-trip and post-trip inspections and periodic inspections, and shall promptly correct any defects that could affect safe operation or legal compliance.

10.3 Safety and Compliance. Contractor shall:

• Comply with all applicable traffic laws, safety regulations, and hours-of-service rules;

• Maintain accurate logs and records as required;

• Report accidents, citations, and safety incidents to Carrier promptly.

11. Cargo Handling and Operational Rules

11.1 Cargo Handling. Contractor shall load, secure, transport, and unload cargo in accordance with Carrier’s instructions, shipper and receiver requirements, and applicable securement laws.

11.2 Equipment Return Between Loads. When not on a dispatched load, Contractor shall follow Carrier’s instructions regarding parking, storage, and availability of the Equipment.

11.3 Prohibited Conduct. Contractor shall not transport unauthorized passengers, illegal cargo, or hazardous materials not authorized by Carrier. Contractor shall not operate the Equipment under the influence of alcohol, drugs, or other impairing substances.

12. Records and Audit Rights

12.1 Contractor Records. Contractor shall retain records of logs, inspections, maintenance, and other documents relating to services under this Agreement for at least [Number] years or as required by law.

12.2 Carrier Review. Carrier may request and review relevant records to verify compliance with this Agreement and applicable regulations.

13. Termination

13.1 Termination by Either Party. Either Party may terminate this Agreement without cause by giving [Number] days’ written notice to the other Party.

13.2 Immediate Termination. Carrier may terminate this Agreement immediately upon written notice if Contractor:

• Operates in a reckless or unsafe manner;

• Fails to maintain required insurance or licenses;

• Engages in fraud, theft, or serious misconduct;

• Commits a material breach of this Agreement that is not cured within [Number] days after written notice (if curable).

13.3 Obligations on Termination. Upon termination:

• Contractor shall promptly return all Carrier property, identification, placards, permits, and documents;

• Contractor shall deliver any cargo in transit as directed or cooperate in safe transfer;

• The Parties shall complete a final settlement within [Number] days, including deductions, chargebacks, and any escrow reconciliation.

14. Governing Law and Dispute Resolution

14.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules, except to the extent preempted by applicable federal or national law.

14.2 Dispute Resolution. The Parties shall first attempt to resolve disputes through good-faith discussions. If not resolved, disputes may be submitted to [mediation / arbitration / court] in [City, State/Province, Country], as specified here: [Dispute Resolution Method].

15. Miscellaneous

15.1 Entire Agreement. This Agreement, together with any written addenda, constitutes the entire agreement between the Parties concerning the subject matter and supersedes all prior oral or written agreements on the same subject.

15.2 Amendments. Any amendment or modification must be in writing and signed or clearly agreed by both Parties.

15.3 Assignment. Contractor may not assign this Agreement or subcontract transportation services without Carrier’s prior written consent. Carrier may assign this Agreement to an affiliate or successor, subject to applicable law.

15.4 Notices. Formal notices under this Agreement shall be sent to the addresses or emails listed at the beginning of this Agreement, or to updated contact details provided in writing.

15.5 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15.6 Counterparts and Electronic Signatures. This Agreement may be signed in counterparts and by electronic signature. Each signed counterpart is deemed an original, and all counterparts together form one instrument.

16. Signatures

By signing below, the Parties acknowledge that they have read this Agreement and agree to be bound by its terms.

Carrier

Signature: _______________________________
Name: [Authorized Signatory Name]
Title: [Title]
Date: [Date]

Contractor (Owner-Operator)

Signature: _______________________________
Name: [Owner-Operator Name]
Title (if business entity): [Title]
Date: [Date]