Taxi Lease Agreement Template

Taxi Lease Agreement Template

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

Lessor (Owner / Taxi Company)
Name or Legal Entity: [Lessor Name]
Address: [Lessor Street Address]
City, State/Province, ZIP/Postal Code, Country: [Lessor City, State/Province, ZIP/Postal Code, Country]
Phone: [Lessor Phone Number]
Email: [Lessor Email Address]

(“Lessor”)

and

Lessee (Driver / Operator)
Name or Legal Entity: [Lessee Name]
Address: [Lessee Street Address]
City, State/Province, ZIP/Postal Code, Country: [Lessee City, State/Province, ZIP/Postal Code, Country]
Phone: [Lessee Phone Number]
Email: [Lessee Email Address]
Driver License Number: [Driver License Number]
Taxi / Hack License Number (if applicable): [Taxi License Number]

(“Lessee”).

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

1. Taxi Vehicle and Lease Overview

1.1 Leased Taxi. Lessor leases to Lessee the following licensed taxi vehicle (“Taxi”):

• Vehicle Type: [Sedan / Minivan / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Vehicle Identification Number (VIN): [VIN]

• License Plate Number and Jurisdiction: [Plate Number and Jurisdiction]

• Medallion / Plate / Permit Number (if applicable): [Number]

1.2 Taxi Equipment. The Taxi includes, as installed:

• Taximeter: [Meter Make and Model]

• Roof light / taxi sign

• Dispatch radio or data terminal (if used)

• Card or payment terminal

• Security camera or partition (if installed)

• Other equipment: [Description]

All fixed equipment remains the property of Lessor unless otherwise agreed in writing.

1.3 Purpose of Lease. The Taxi is leased solely for use as a licensed taxi or for-hire vehicle in accordance with applicable regulations and this Agreement. The Taxi may not be used for unlicensed or unpermitted activities.

1.4 No Transfer of Ownership. This Agreement is a lease only. Lessee obtains the right to use the Taxi during the Lease Term but no ownership interest, unless a purchase option in this Agreement is expressly included and exercised.

2. Lease Term, Possession, and Use

2.1 Lease Term. The lease term begins on:

• Lease Start Date: [Lease Start Date]

and ends on:

• Lease End Date: [Lease End Date]

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

2.2 Delivery and Possession. Lessor shall deliver, and Lessee shall accept, the Taxi at:

• Delivery Location: [Delivery Address or Yard]

on or about the Lease Start Date. The Parties may complete a written condition report recording mileage, fuel level, and visible damage at delivery.

2.3 Exclusive Possession for Lease Purposes. During the Lease Term, Lessee has the right to possess and use the Taxi in accordance with this Agreement, subject to regulatory rules and any dispatch or fleet policies that Lessor discloses in writing.

2.4 Permitted Territory. Lessee may operate the Taxi only within the following territory, unless Lessor agrees otherwise in writing:

• Permitted Territory: [City / Region / Zone]

2.5 Permitted Use. The Taxi may be used only:

• For lawful transportation of passengers for hire;

• In accordance with all licensing, taxi, and traffic regulations;

• By Lessee and any additional driver approved in writing by Lessor and properly licensed.

2.6 Prohibited Use. Lessee shall not:

• Use the Taxi for personal use beyond reasonable commuting without Lessor’s consent;

• Use the Taxi for illegal activities or to transport illegal goods;

• Sub-lease, rent, or lend the Taxi to third parties;

• Use the Taxi for racing, off-road driving, or other non-taxi purposes;

• Tamper with or disable the taximeter, GPS, camera, or safety systems.

3. Lease Payments and Security Deposit

3.1 Lease Payments. Lessee shall pay Lessor for use of the Taxi as follows:

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

• Due Date: [Day of each period, for example “Monday of each week” or “1st of each month”]

(collectively, the “Lease Payments”).

3.2 Amount Due at Signing. On or before the Lease Start Date, Lessee shall pay:

• First Lease Payment: [Currency and Amount]

• Security Deposit (Section 3.3): [Currency and Amount]

• Any administrative or documentation fee: [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Security Deposit. Lessee shall provide a refundable security deposit in the amount of [Currency and Amount] (the “Security Deposit”). Lessor may apply the Security Deposit to unpaid Lease Payments, damage to the Taxi, missing equipment, cleaning fees, fuel charges, tickets or fines paid on Lessee’s behalf, and any other amounts owed under this Agreement.

3.4 Return of Security Deposit. Within [Number] days after the Taxi is returned at the end of the Lease Term and Lessor has calculated all amounts due, Lessor shall return any remaining Security Deposit balance to Lessee, together with an itemized statement of deductions, if any.

3.5 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.

4. Fuel, Operating Costs, and Cleaning

4.1 Fuel. The Taxi is delivered with fuel level at: [Fuel Level]. Lessee shall:

• Keep the Taxi adequately fueled during service; and

• Return the Taxi at the end of the Lease Term with fuel level at [Required Fuel Level], or pay a refueling charge of [Currency and Amount] or [Currency and Amount] per [unit].

4.2 Operating Costs. Unless agreed otherwise in writing, Lessee is responsible for operating expenses, including fuel, tolls, parking, car washes, and similar costs.

4.3 Cleaning. Lessee shall keep the Taxi reasonably clean inside and outside, suitable for passenger service. If the Taxi is returned excessively dirty or requires special cleaning, Lessor may charge a cleaning fee of [Currency and Amount] or the actual cost of cleaning.

5. Licensing, Permits, and Compliance

5.1 Driver Licensing. Lessee represents that Lessee:

• Holds a valid driver license authorizing operation of the Taxi; and

• Holds any required taxi, hack, or professional driver license or badge required in the jurisdiction.

5.2 Taxi License and Permit. Lessor shall ensure that the Taxi holds a valid vehicle registration and taxi medallion, plate, or permit as required for lawful operation, unless local rules allocate that responsibility differently and the Parties agree in writing.

5.3 Compliance with Regulations. Lessee shall obey all taxi, transport, and traffic laws and regulations, including:

• Operating only in authorized areas;

• Charging fares according to the meter and applicable tariff;

• Displaying required licenses, IDs, and rate information in the Taxi;

• Complying with rules regarding pickups, ranks, and dispatch.

5.4 Inspections. Lessee shall present the Taxi for required safety or regulatory inspections when requested by Lessor or regulatory authorities and cooperate with any compliance checks.

6. Maintenance, Repairs, and Breakdowns

6.1 Lessor’s Maintenance Responsibilities. Unless otherwise agreed:

• Lessor is responsible for scheduled servicing and major mechanical repairs required due to normal wear or manufacturer defects;

• Lessor will maintain the Taxi in a roadworthy, legally compliant condition at the beginning of the Lease Term.

6.2 Lessee’s Duty of Care. Lessee shall:

• Conduct basic checks (tires, lights, fluid indicators) before and during use;

• Promptly report any mechanical issues, warning lights, or unusual noises to Lessor;

• Not operate the Taxi if it is unsafe or likely to cause further damage.

6.3 Repairs Due to Misuse or Negligence. Damage or repairs caused by Lessee’s misuse, negligence, or breach of this Agreement (including driving with flat tires, severe overheating ignored, or improper fueling) shall be Lessee’s responsibility. Lessor may charge such costs to Lessee or deduct them from the Security Deposit.

6.4 Breakdowns. If the Taxi breaks down or becomes unsafe:

• Lessee shall safely stop and contact Lessor at [Lessor Contact Number];

• Lessor will advise on towing, repair, or replacement procedures;

• Lessee shall not authorize major repairs without Lessor’s consent, except where immediate action is required for safety and Lessor cannot be reached.

7. Insurance and Risk of Loss

7.1 Insurance on the Taxi. Lessor shall maintain required insurance on the Taxi, which may include:

• Liability insurance for bodily injury and property damage;

• Any commercial auto or taxi policy required by law.

Key limits and deductibles (if applicable) may be summarized here: [Insurance Summary].

7.2 Lessee’s Insurance Responsibilities. Where required by law or Lessor’s policy, Lessee shall maintain any additional personal, professional, or supplemental insurance and may be responsible for paying policy deductibles relating to incidents arising from Lessee’s use of the Taxi.

7.3 Risk of Loss. Except to the extent caused by Lessor, Lessee bears the risk of loss, theft, or damage to the Taxi during the Lease Term, subject to applicable insurance and this Agreement.

8. Accidents, Tickets, and Fines

8.1 Accidents and Incidents. In the event of an accident, injury, property damage, or other incident involving the Taxi, Lessee shall:

• Ensure safety and call emergency services if needed;

• Notify law enforcement if required by law;

• Notify Lessor as soon as reasonably possible;

• Provide Lessor with a written description and copies of any reports, citations, or correspondence.

8.2 Tickets and Fines. Lessee is responsible for all traffic tickets, parking fines, tolls, congestion charges, and similar penalties incurred while operating the Taxi during the Lease Term.

8.3 Processing Fees. If Lessor receives notices of violations or tolls relating to the Lease Term, Lessor may pay or transfer them as permitted and charge Lessee the amounts plus an administrative fee of [Currency and Amount] per incident.

9. Relationship of the Parties and Indemnity

9.1 Status of Lessee. The Parties intend that Lessee is an independent contractor and not an employee, agent, or partner of Lessor. Lessee is responsible for any taxes, social security, or similar obligations arising from income earned by operating the Taxi, subject to applicable law.

9.2 No Authority to Bind. Lessee has no authority to enter into contracts or commitments on behalf of Lessor, except as may be necessary to operate the Taxi in ordinary passenger transport (for example, accepting fares or dispatch assignments as part of the taxi service).

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

10. Default, Termination, and Return of Taxi

10.1 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 operates the Taxi without required licenses or permits;

• Lessee uses the Taxi in a dangerous, illegal, or prohibited manner;

• Lessee materially breaches this Agreement and does not cure the breach within [Number] days after written notice, if a cure is possible.

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

• Terminate this Agreement by written notice;

• Declare all unpaid Lease Payments immediately due and payable, to the extent allowed by law;

• Require immediate return of the Taxi;

• Recover possession of the Taxi in a peaceful and lawful manner;

• Apply the Security Deposit to amounts owed;

• Seek additional damages and reasonable enforcement costs.

10.3 Termination Without Cause. Either Party may terminate this Agreement without cause by giving [Number] days’ written notice to the other Party, unless local regulations or a longer fixed Lease Term require otherwise.

10.4 Return of Taxi. At the end of the Lease Term or upon earlier termination, Lessee shall return the Taxi:

• To the Return Location: [Return Address or Yard];

• On or before the effective termination date;

• Clean and in serviceable condition;

• With all keys, documents, license and permit cards, and equipment provided by Lessor.

10.5 Final Inspection and Settlement. Lessor may inspect the Taxi at return and document mileage, fuel level, and any damage or missing items. Lessor shall prepare a final statement of Lease Payments due, damage or other charges, and any Security Deposit balance to be refunded.

11. Governing Law and Miscellaneous

11.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules, and subject to any specific taxi or transport regulations in that jurisdiction.

11.2 Entire Agreement. This Agreement contains the entire understanding between the Parties regarding the lease of the Taxi and supersedes all prior oral or written agreements on this subject.

11.3 Amendments. Any amendment or modification of this Agreement must be in writing and signed or clearly agreed by both Parties.

11.4 Assignment. Lessee may not assign this Agreement or transfer rights or obligations without Lessor’s prior written consent. Lessor may assign this Agreement or its interest in the Taxi, subject to applicable law and any regulatory requirements.

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

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

11.7 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.

12. Signatures

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

Lessor (Owner / Taxi Company)

Signature: _______________________________
Name: [Lessor Authorized Signatory Name]
Title (if entity): [Title]
Date: [Date]

Lessee (Driver / Operator)

Signature: _______________________________
Name: [Lessee Name]
Driver License Number: [Driver License Number]
Taxi / Hack License Number (if applicable): [Taxi License Number]
Date: [Date]