Owner-Operator Lease Agreement Generator

Lease structure

1.1 Equipment. Carrier leases the equipment described above from Owner-Operator for use in carrier operations. Owner-Operator represents that it owns the equipment or has authority to lease it and that the equipment is in safe, lawful operating condition.

1.2 No authority transfer. This agreement does not transfer, sell, or confer motor carrier operating authority. Any authority used to haul regulated freight remains with the party that holds it.

Regulatory acknowledgments

2.1 Truth-in-leasing review. For a lease-on arrangement, the parties acknowledge that 49 CFR Part 376 may apply to the lease of equipment with a driver to an authorized carrier. The parties are responsible for confirming applicable requirements, including written lease terms, receipts for equipment, escrow accounting, insurance, and return of equipment.

2.2 Required documents. Carrier will provide Owner-Operator with the documents required by applicable law and will maintain records of the lease, equipment receipts, and settlements. Owner-Operator will provide accurate identification and equipment information.

2.3 No compliance certification. This template is a starting point. It does not certify compliance with Part 376 or any other regulation, and it does not replace the carrier’s compliance review or legal advice.

Compensation and settlement

3.1 Compensation. Carrier will pay Owner-Operator the compensation described above. Compensation is based only on loads or services actually performed under this agreement.

3.2 Settlement statements. Carrier will provide a written settlement statement showing gross revenue, deductions, and net compensation for each settlement period. Owner-Operator may request supporting documentation for any deduction.

3.3 Deductions and escrow. Any deduction, escrow, or reserve must be identified in writing and accounted for as agreed. Carrier will not make undisclosed deductions from compensation.

3.4 Disputed amounts. Owner-Operator must dispute a settlement item in writing within a reasonable time. Undisputed amounts remain payable on schedule.

Equipment responsibilities

4.1 Equipment maintenance. Owner-Operator is responsible for routine maintenance and repairs unless the parties agree otherwise in writing. Carrier may require equipment to meet its safety and appearance standards.

4.2 Insurance. Each party will maintain the insurance described above for its role and the selected lease structure, and provide proof on request. This agreement does not itself provide insurance coverage.

Lease-on driving responsibilities

5.1 Driving services. Owner-Operator will provide the driving services described in the lease-on arrangement using Carrier’s operating authority, subject to the parties’ written terms and applicable requirements.

5.2 Safety and compliance. For a lease-on arrangement, Owner-Operator will operate safely, maintain required licenses and medical certification, comply with hours-of-service rules, and promptly report accidents, citations, and equipment defects.

5.3 Loads and dispatch. For a lease-on arrangement, Carrier will offer loads and Owner-Operator may accept or decline them consistent with the lease terms. Owner-Operator will not broker freight or hold out broker authority.

Relationship and confidentiality

6.1 Independent contractor. Owner-Operator is an independent contractor. Nothing in this agreement creates employment, a partnership, or a joint venture. Owner-Operator is responsible for its own taxes, fuel, tolls, and operating expenses unless stated otherwise.

6.2 Confidentiality. Owner-Operator will protect non-public carrier, shipper, and broker information received during the lease and use it only for services under this agreement.

6.3 Non-exclusivity. Unless the key terms state otherwise, this agreement is non-exclusive and does not prevent either party from working with other carriers or equipment owners.

Term, termination, and return

7.1 Term and termination. This agreement begins on the effective date and continues for the term stated above unless terminated earlier as provided. Either party may terminate for material breach or safety concerns.

7.2 Final settlement. On termination, Carrier will complete a final settlement and account for any escrow or reserve as required by the agreement and applicable law.

7.3 Return of equipment. Owner-Operator will recover the equipment in the condition and at the location stated above, ordinary wear excepted, and Carrier will provide any required equipment receipt or release.

7.4 Governing law. This agreement is governed by the law of the state where Carrier is organized or as otherwise stated in the key terms, without regard to conflict-of-law rules.