Semi-Truck Lease Agreement Template

Semi-Truck Lease Agreement Template

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

Lessor
[Lessor Legal Name]
[Entity Type, if applicable]
[Registered Address or Principal Place of Business]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Lessor”)

and

Lessee
[Lessee Full Name or Business Name]
[Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Lessee”).

Lessor and Lessee may be referred to individually as a “Party” and together as the “Parties”.

1. Semi-Truck and Lease Overview

1.1 Leased Semi-Truck. Lessor leases to Lessee the following semi-truck tractor (the “Truck”):

• Truck Type: [Day Cab / Sleeper Cab / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Vehicle Identification Number (VIN): [VIN]

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

• Gross Vehicle Weight Rating (GVWR): [Weight Rating]

1.2 Intended Use. The Truck is leased for [commercial / business] use in connection with [brief description of operations, e.g., “long-haul freight,” “regional deliveries,” etc.], subject to the terms of this Agreement.

1.3 No Ownership Transfer. This is a lease only. Lessee receives the right to use the Truck during the Lease Term but does not acquire any ownership interest unless an end-of-lease purchase option (if included in Section 13) is properly exercised.

2. Lease Term and Delivery

2.1 Lease Term. The lease term begins on:

• Lease Start Date: [Start Date]

and continues until:

• Lease End Date: [End Date]

unless earlier terminated according to this Agreement (the “Lease Term”).

2.2 Delivery and Acceptance. Lessor shall deliver, and Lessee shall accept, the Truck at:

• Delivery Location: [Delivery Address or Location]

on or about the Lease Start Date.

2.3 Condition at Delivery. The Parties may complete and sign a condition report at delivery noting odometer reading, fuel level, tire condition, body and interior condition, and any pre-existing damage. Lessee acknowledges receipt of the Truck in good working order, except as noted.

2.4 Holdover. If Lessee retains the Truck after the Lease End Date without a written extension, Lessee may be charged a holdover fee of [Currency and Amount] per day, in addition to other amounts due.

3. Lease Payments and Amount Due at Signing

3.1 Periodic Lease Payments. Lessee shall pay Lessor:

• Lease Payment Amount: [Currency and Amount] per [week / month / other period]

Each payment is due on the [Day] of each [period] during the Lease Term (the “Lease Payments”).

3.2 Amount Due at Signing. On or before delivery of the Truck, Lessee shall pay:

• First Lease Payment: [Currency and Amount]

• Security Deposit (Section 4): [Currency and Amount]

• Initial fees and taxes, if any: [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Taxes and Fees. Lessee is responsible for applicable sales, use, or similar taxes, and any governmental fees associated with this lease and operation of the Truck, unless applicable law requires Lessor to pay them.

3.4 Late Payments. Any Lease Payment not received within [Number] days after the due date may incur:

• A late fee of [Currency and Amount] or [Percentage]% of the overdue amount; and

• Interest on the overdue balance at [Percentage]% per year, or the maximum allowed by law, calculated from the day after the due date until paid.

4. Security Deposit

4.1 Deposit Amount. Lessee shall pay a refundable security deposit of [Currency and Amount] (the “Security Deposit”).

4.2 Use of Deposit. Lessor may apply the Security Deposit to unpaid Lease Payments, excess mileage charges, repair of damage beyond normal wear and tear, cleaning fees, or any other amounts owed under this Agreement.

4.3 Return of Deposit. After the Truck is returned and inspected, any remaining Security Deposit shall be returned to Lessee within [Number] days, together with an itemized statement of any deductions.

5. Mileage, Use Limits, and Territory

5.1 Mileage Allowance. Lessee is allowed up to:

• [Number] miles / kilometers per [month / year]

for a total allowed mileage of [Total Number] miles / kilometers during the Lease Term.

5.2 Excess Mileage Charges. If Lessee exceeds the total allowed mileage, Lessee shall pay an excess mileage fee of [Currency and Amount] per mile / kilometer over the limit.

5.3 Permitted Use. Lessee may use the Truck only:

• For lawful commercial transportation of cargo;

• Within the territory: [Country / States / Provinces / Regions];

• In compliance with all applicable transport, safety, and environmental laws and regulations.

5.4 Prohibited Use. Lessee shall not:

• Use the Truck for illegal activities or transport of unlawful cargo;

• Operate the Truck off-road or in unsuitable terrain, except as reasonably needed for loading/unloading;

• Overload the Truck beyond any posted or rated limits;

• Use the Truck for training or passenger transport without Lessor’s written consent.

6. Drivers and Licensing

6.1 Authorized Drivers. Only the following individuals may operate the Truck:

• [Driver Name 1]

• [Driver Name 2]

• [Additional Authorized Drivers]

6.2 Driver Requirements. Each authorized driver must:

• Hold and maintain a valid commercial driver’s license (CDL) or equivalent required for the Truck and operations;

• Meet applicable age, medical, and driving record requirements;

• Comply with all hours-of-service and safety rules.

6.3 Compliance with Policies. Lessee shall ensure that all drivers comply with any written safety, maintenance, or operating policies provided by Lessor.

7. Condition, Maintenance, and Repairs

7.1 Duty of Care. Lessee shall:

• Use the Truck in a careful and safe manner;

• Keep the Truck reasonably clean inside and out;

• Protect the Truck from avoidable damage and corrosion;

• Promptly report any mechanical issues, warning lights, or accidents to Lessor.

7.2 Routine Maintenance. The Parties agree that:

• [Lessor / Lessee] is responsible for oil changes, fluids, filters, and scheduled servicing;

• [Lessor / Lessee] is responsible for tires, brakes, lights, and routine repairs;

• Any agreed maintenance schedule may be attached as an exhibit.

7.3 Repairs Due to Defects or Wear. Repairs required due to normal wear or manufacturing defects are the responsibility of [Lessor / Lessee], subject to any warranties and applicable law.

7.4 Repairs Due to Misuse. Repairs required due to misuse, overloading, neglect, improper maintenance, or prohibited use are the responsibility of Lessee.

7.5 Unauthorized Modifications. Lessee shall not make structural modifications, change emissions systems, or install permanent equipment or branding without Lessor’s written consent, except temporary and removable markings agreed in advance.

8. Insurance and Risk of Loss

8.1 Required Insurance. Throughout the Lease Term, Lessee shall maintain insurance covering the Truck with at least:

• Liability coverage of not less than [Currency and Amount] per person and [Currency and Amount] per occurrence;

• Physical damage coverage (collision and comprehensive) with a deductible not exceeding [Currency and Amount];

• Any additional coverage required by law or specified by Lessor in writing.

Lessor may be named as loss payee and/or additional insured, as applicable.

8.2 Proof of Insurance. Lessee shall provide proof of required insurance before taking possession and whenever reasonably requested. Failure to maintain coverage is a material breach of this Agreement.

8.3 Risk of Loss. Except to the extent caused by Lessor, Lessee bears the risk of loss, theft, or damage to the Truck while in Lessee’s possession or control. Insurance proceeds shall be applied to repair or, in the case of total loss, to lease obligations as permitted by law and this Agreement.

9. Registration, Title, and Compliance

9.1 Title. Legal title to the Truck remains with Lessor or any designated finance party. Lessee shall not attempt to transfer, encumber, or register title in its own name.

9.2 Registration and Plates. The Truck shall remain registered in the name of Lessor or as required by law. Lessee shall cooperate with renewals, inspections, and documentation as reasonably requested.

9.3 Regulatory Compliance. Lessee is responsible for compliance with all regulations relating to operation of the Truck, including weight limits, permits, route restrictions, inspection requirements, and any transport authority rules applicable to Lessee’s business.

10. Fines, Tolls, and Operating Charges

10.1 Responsibility. Lessee is responsible for all traffic tickets, parking fines, tolls, weigh station violations, and similar charges incurred while operating the Truck during the Lease Term.

10.2 Processing Fees. If Lessor receives any such notices, Lessor may pay or transfer them as permitted and charge Lessee the amounts plus an administrative fee of [Currency and Amount] per incident.

11. Accidents, Damage, Loss, and Theft

11.1 Incident Reporting. In the event of any accident, damage, loss, or theft involving the Truck, Lessee shall:

• Ensure safety and contact emergency services if needed;

• Notify law enforcement where required;

• Notify Lessor as soon as reasonably possible;

• Provide copies of any police reports, citations, or insurance documents.

11.2 Repair Decisions. Lessor will generally determine where and how repairs are carried out, unless otherwise agreed. Lessee shall cooperate with Lessor and insurers in investigating and handling claims.

11.3 Total Loss or Theft. If the Truck is stolen or deemed a total loss, Lessee may be liable for the fair market value of the Truck at the time of loss, less any insurance proceeds actually received by Lessor, subject to applicable law and this Agreement.

12. Default and Remedies

12.1 Events of Default. Lessee is in default if:

• Lessee fails to pay any Lease Payment or other amount when due and such failure continues for [Number] days after any required notice;

• Lessee fails to maintain required insurance;

• Lessee materially breaches this Agreement (including prohibited use, serious damage, or regulatory violations);

• Lessee becomes insolvent, files for bankruptcy, or ceases operations (if a business lessee).

12.2 Lessor’s Remedies. Upon default and subject to applicable law, Lessor may:

• Declare all remaining Lease Payments immediately due and payable, subject to legal limits;

• Terminate this Agreement;

• Recover possession of the Truck in a lawful, peaceful manner;

• Apply the Security Deposit toward amounts owed;

• Seek additional damages, interest, and reasonable enforcement costs.

13. End-of-Lease Return and Purchase Option

13.1 Return of Truck. Unless Lessee exercises a purchase option under Section 13.3, Lessee shall return the Truck at the end of the Lease Term:

• At Return Location: [Return Address or Location];

• On or before the Lease End Date;

• Clean and free of excessive dirt, debris, or contamination;

• In substantially the same condition as at delivery, normal wear and tear excepted.

13.2 Excess Wear and Tear. Lessor may charge Lessee for damage or wear beyond normal, including:

• Significant body damage or frame issues;

• Cracked glass, broken lights, or damaged mirrors;

• Excessively worn or mismatched tires;

• Damaged interior, missing tools or safety equipment;

• Evidence of misuse, overloading, or unapproved modifications.

13.3 Purchase Option (if applicable).

☐ Lessee has an option to purchase the Truck at the end of the Lease Term for:

• Purchase Price (Residual Value): [Currency and Amount]

To exercise this option, Lessee must:

• Give written notice of intent to purchase at least [Number] days before the Lease End Date;

• Pay the Purchase Price plus applicable taxes and fees on the agreed closing date;

• Sign any documents required to transfer title.

☐ No purchase option is granted under this Agreement.

14. Indemnification and Limitation of Liability

14.1 Lessee’s Indemnity. To the extent permitted by law, Lessee shall indemnify and hold Lessor harmless from third-party claims, damages, fines, and expenses arising from Lessee’s or any authorized driver’s use, operation, or loading of the Truck, except to the extent caused by Lessor’s own negligence or wrongful acts.

14.2 Lessor’s Liability. To the extent permitted by law, Lessor is not liable for:

• Loss or damage to cargo or goods transported in the Truck;

• Loss or damage to Lessee’s personal or business property;

• Indirect, incidental, or consequential damages;

• Loss of profits or business interruption related to use or non-availability of the Truck.

15. Governing Law and Dispute Resolution

15.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules.

15.2 Dispute Resolution. The Parties shall first attempt in good faith to resolve disputes through informal discussions. If not resolved, disputes may be brought before the courts of [City, State/Province, Country] or handled through [mediation / arbitration] if the Parties have a separate written agreement to that effect.

16. Miscellaneous

16.1 Entire Agreement. This Agreement contains the entire understanding between the Parties regarding the lease of the Truck and supersedes all prior discussions or agreements on this subject.

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

16.3 Assignment. Lessee may not assign this Agreement or transfer its rights or obligations without Lessor’s prior written consent. Lessor may assign this Agreement or its interest in the Truck, subject to applicable law.

16.4 Notices. Formal notices under this Agreement shall be in writing and delivered personally, by certified or registered mail, by recognized courier, or by email (with confirmation if required by law) to the addresses listed at the beginning of this Agreement or to updated addresses provided in writing.

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

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

17. Signatures

By signing below, the Parties confirm that they have read, understood, and agree to be bound by this Semi-Truck Lease Agreement.

Lessor

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

Lessee

Signature: _______________________________
Name: [Lessee Full Name]
Driver’s License or CDL Number: [Number]
Issuing State/Province/Country: [Jurisdiction]
Date: [Date]