Equipment Hire Agreement UK (A145)

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Who can use this Equipment Hire  Agreement?

Any business want to rent out equipment to another business can use this Equipment Hire Agreement.

What is this equipment hire agreement for?

You need this document if you are an Owner or Hirer looking to protect your interests when loaning out equipment to other businesses.

If you are hiring a car or other road-going vehicle you can use our document A226

What are the main issues?

The hire agreement includes:

  • the hirer’s duties and responsibilities with regard to the use of the equipment and a general liability/indemnity clause for loss or damage
  • the owner’s duties e.g. with regard to breakdown which is not the hirer’s fault
  • hire charges & payment terms
  • duration and the rights of each party to terminate

What detailed terms does the contract contain?

This five page document contains 10 clauses covering

  • definitions
  • hire agreement
  • delivery of equipment, by either Owner or Hirer
  • hirer’s general obligations
  • owner’s general obligations
  • hire charges and payment
  • indemnity
  • termination
  • assignment
  • governing law and disputes

For more information on each of these sections, see our Explanatory Notes  which you will receive when you download the document from our website.

Example of the template



(1) [ ]of [ ] (“Owner”); and

(2) [ ]of [ ] (“Hirer”).



1.1 In this Agreement:


means the equipment described in Part A of the Schedule;

“Hire Charges”

means the charges payable by the Hirer to the Owner as listed in Part B of the Schedule;

“Hire Period”

means the period of the hire of the Equipment as listed in Part C of the Schedule; and

“Hirer’s Premises”

means the address stated in Part D of the Schedule.

1.2 The attached Schedule forms part of this Agreement.


2.1 The Owner agrees to hire the Equipment to the Hirer for the duration of the Hire Period (unless this Agreement is terminated early in accordance with its terms).

2.2 This Agreement will be extended if, before the end of the Hire Period, the Owner and the Hirer agree in writing the terms on which the hire of the Equipment is to be extended.


[alternative A]

The Owner will deliver the Equipment to the Hirer at the location identified by the Hirer before signature of this Agreement.


[alternative B]

The Owner will deliver the Equipment to the Hirer at the Owner’s premises and the Hirer will be responsible for transportation of the Equipment to the Hirer’s Premises.


4.1 The Hirer is responsible for obtaining all consents and authorisations that are needed to enable the Hirer lawfully to use the Equipment at the Hirer’s Premises.

4.2 The Hirer will at its own expense install the Equipment and provide all services to enable the Equipment to be used at the Hirer’s Premises.

4.3 The Hirer will keep the Equipment in good repair and condition (reasonable wear and tear excepted) throughout the Hire Period and will comply with all instructions for the use of the Equipment which are notified to the Hirer by the Owner.

4.4 The Hirer will keep the Equipment safe and protected against adverse weather as well as against risk of loss or theft while at the Hirer’s Premises.

4.5 The Hirer will not use the Equipment except for the purposes for which it is supplied by the Owner, nor will the Hirer exceed the floor loading capacity of the Equipment (if any) specified in the Schedule.

4.6 The Hirer will ensure that all labels on the Equipment identifying it as the property of the Owner are maintained in place throughout the Hire Period. Also, the Hirer will upon request give the Owner access to inspect the Equipment during normal business hours.

4.7 The Hirer must immediately notify the Owner of any loss or damage occurring to the Equipment during the Hire Period.


5.1 The Owner will maintain insurance of the Equipment against fire, lightning, explosion and other similar risks during the Hire Period. The terms of the Owner’s policy will be made available to the Hirer upon request and the Hirer will be deemed to have knowledge of those terms.

5.2 If the Equipment is damaged or breaks down during the Hire Period through no fault of the Hirer, the Owner will endeavour to repair or, at its option, may replace the Equipment with suitable alternative equipment if it has alternative equipment available.


6.1 Hire Charges (including any deposit payable by the Hirer) and the payment intervals are set out in Part B of the Schedule.

6.2 The Hirer will pay Hire Charges in advance against the Owner’s invoice. The first payment will be due immediately before the Hire Period starts.

6.3 Hire Charges are quoted net of VAT, which will be added as appropriate.

6.4 Transportation and delivery costs and the costs of redelivery of the Equipment at termination or expiry of the Agreement will only be payable by the Hirer in addition to the Hire Charges if so stipulated in Part B of the Schedule.

6.5 All invoices must be settled within 7 days of issue, failing which the Owner will have the right to terminate the Agreement and repossess the Equipment. Any late payment will entitle the Owner to interest on the overdue amount at [4%] p.a. above the base rate of (name of Owner’s bank) Bank.

6.6 If the Owner terminates this Agreement before expiry of the Hire Period on account of the Hirer’s default or breach of contract, the Hirer will remain liable to the Owner for all Hire Charges which are unpaid and all Hire Charges which would have become due if the Hire Period had continued for its full duration.


The Hirer will indemnify the Owner for loss of or damage to the Equipment occurring during the Hire Period. The Hirer will also indemnify the Owner against any claims, damages, expenses, and proceedings arising in respect of personal injury or death of any person or damage to any property, which arises out of the use of the Equipment during the Hire Period. These indemnities will extend to any loss which is covered by the Owner’s insurance referred to in this agreement.


8.1 The Owner may terminate this agreement if:

8.1.1 the Hirer becomes insolvent or has a receiver, liquidator administrator or administrative receiver appointed over its affairs; or

8.1.2 the Hirer commits a breach of the Agreement.

8.2 Upon termination, the Hirer will deliver the Equipment to the Owner at the location where it was delivered by the Owner to the Hirer and in the same condition (fair wear and tear excepted).


The Hirer will not assign, sublet or part with possession of any of the Equipment during the Hire Period.

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