Dump Trailer Rental Contracts Explained
Dump trailer rental contracts are specialty rental agreements intended to capture the terms of a rental of a dump trailer. Dump trailers refer specifically to trailers which have a hydraulic door. For purposes of OSHA regulations, a hydraulic door does not include a simple tailgate. An example can be found in OSHA’s standards for four-wheeled vehicles, as discussed below.
"Dump Trailers are designed for transporting cargo with the ability to unload primarily by dumping, such as by use of a dump or flip-up tailgate, or by dumping over the side or end."
The foregoing is from OSHAs standards for powered industrial trucks – general requirements (29 CFR 1910.176). A hydraulic tailgate is not a requirement , merely an example. For purposes of our contract discussion, hydraulic doors should be clearly defined, whether they be a typical dump truck tailgate, a swing out design, or otherwise.
Further, the contract should specifically define the trailer to be rented. This is important, because even after the trailer has been delivered and utilized, the terms and conditions of the rental agreement must be followed. This is critical because the contract may require a specific kind of vehicle with a certain type of hydraulic door. Otherwise there is risk that the rental agreement will not be enforced according to the terms of the parties negotiation.
Contract Essentials for Dump Trailer Rentals
The rental contract for the dump trailer is one of the most legally relevant documents that you will sign to formalize your rental agreement. Details concerning the rental agreement should be included either in the rental contract or, at a minimum, referenced in the contract. In particular, you want to look for rental dates, fees, insurance requirements and responsibilities for repairs and accident costs. Additionally, the contract should have information regarding penalties for early returns and late fees for returned trailers. Discussed below are essential components that should be considered when reviewing every dump trailer rental contract.
Rental Terms
The rental term expressed in the contract should match your expectations. It should spell out the start and end dates as well as the price that you expect to pay. If you expect to receive a discount for an early return, it should be listed in the contract as well. Your responsibility to return the trailer early should be expressed in the agreement. If you intend to rent the trailer for a specified amount of time, such as one week, and you do not want to pay extra for an early return, you should make arrangements with the rental agency. Be especially mindful of the time zone that applies to your rental; the contract should be clear about this.
Damage Penalties and Post-Return Charges
Another strong consideration should involve the maximum financial responsibility that you bear if the vehicle suffers damage. In this case, a well-written contract is extremely important. You should never agree to be responsible for more than the cost of repairs and the market value of the vehicle. You should also not agree to pay any post-return penalties without understanding fully what those may entail. For example, the drop off process for the trailer is important. You should be clear about where to return the trailer and whether the rental agency can hold back any deposits. Alternatively, the contract may require you to drop off the trailer at a designated location or have it picked up by the rental place. When in doubt, seek the help of a lawyer to review the contract in order to assess its fairness and legal merit.
Obligations and Duties of the Parties
We’ll dive even deeper into this subject in future sections of this guide, but it is important to know your legal duties and responsibilities when it comes to dump trailer rental contracts. There are a number of issues that could pop up during the rental period that should be laid out clearly in the contract to ensure you are not saddled with excess costs.
This is why it’s vital that both the dump trailer owner and the renter are as clear as possible on their rights, responsibilities and obligations under the contract. From a legal standpoint, the biggest obligations under the contract are likely to deal with safety and possible liabilities. For instance, both parties have a duty to only use the dump trailer in a safe manner and for its intended purpose. If the renter uses the trailer for an unintended purpose, any liabilities from damages associated with that could fall on both parties.
Both parties also have a duty to disclose any existing damage to the dump trailer. Therefore, photographic evidence should be taken before beginning the rental period. If a dispute comes up at the end of the rental period about damage that exists, the owner could claim they had no responsibility for it if the renter’s photographic evidence proves the damage already existed. In other words, photographic evidence should go both ways.
Standard Terms and Provisions in Rental Contracts
Duration of Rental Agreement. This provision should be fairly self-explanatory. The rental contract should state which days the trailer can be used by the renter, as well as pick-up and drop-off times. In some cases, there may be different agreements for weekdays and weekends/holidays. The policy could contain a clause explaining how many days can pass before an additional charge is imposed.
Payment. This part of the contract describes payment. Usually, a specific payment plan is accepted (for example, $100 up front and $100 every month for six months), if not a flat fee is paid in advance. The penalties for failure to make the payments will also be included. For example, a 10% increase over the original cost of the trailer will be instituted for every day that payment is missed.
Use. Many contracts will include an entire section dedicated to explaining what the trailer will be used for. For example, someone renting the trailer to haul dirt to construction sites may be allowed to operate a dump truck in order to deposit the dirt properly. If a piece of equipment you are using poses a hazard to others, the rental agency could disallow it.
Insurance Policies. Any insurance that is included with renting the trailer should be itemized within the insurance policy. In addition to the standard $100,000 liability coverage most individuals have, the rental agency may require an umbrella policy that extends the total coverage amount to $500,000 or more.
Exploring Terms and Conditions
When it comes to working with heavy equipment or tools, touching on the terms and conditions of a rental contract can be important. Usually, this section of the contract contains information on who’s responsible for what when it comes to using the item. There are tips available to ensure you’re covered no matter what.
1. Accessibility
Even if the dump trailer rental company is located directly in your area, you could run into issues when you try to bring back the trailer. Ask the company representative if it’s possible to bring back the item after hours. Could the trailer be dropped off with a deposit at an agreed location? This will then depend on your personal schedule. If the company will not allow you to drop off the trailer, you may wish to check out another place.
2. Damages
This is an extremely important section in a dump trailer rental contract. In most situations, the company is responsible for natural wear and tear on their items. This means that if the tires need replacing or a dent ends up in the side of the trailer – that’s on them. If they rent you a trailer that has damages already, and you return it that way, you probably will be charged for the missing out on money from that item. If there are damages caused by the user, that’s on you. Make sure that you know the start condition of the trailer before you take it off the lot. The best way to do this is to take pictures in case any disputes arise.
3. Negotiation
Many people hear the word ‘negotiation’ and automatically think of those in power at the bargaining table. You’d be surprised at how easy it is to negotiate a contract for a dump trailer rental. Just keep in mind that you must be prepared to walk away if the company does not agree.
Mitigation of Risks and Insurance Issues
Many companies who rent heavy equipment on a regular basis have their own insurance coverage for the risks associated with such rentals. This is especially common for construction subcontractors, since they may only rent heavy equipment a few times per year. Most general contractors and municipalities carry their own insurance and do not require the purchase of additional coverage. That said, many lessors require some sort of liability coverage whether it is purchased by the business renting the trailer or simply purchased through the lessor without incident.
The rental contract is important for all parties to understand the requirements for purchase of liability insurance. If the lessee damages a dump trailer with an oversized item, anything not otherwise covered under coverage purchased by the lessee or the lessor, the lessee may be liable for the cost of repairing the trailer . Insurance proceeds may be available to pay for repairs, although the proceeds may not be enough to cover the entire cost. Thus, because of the possibility of significant uninsured losses to the lessee, obtaining adequate liability insurance should always be considered.
Insurance can be purchased by the lessee through the lessee’s own insurance agent that covers damage to the dump trailer in the event of a named peril. That coverage can be excess coverage over the amount provided by the lessor’s policy. A lessor may also allow the lessee to obtain coverage at the point of sale. Some lessors simply include this insurance in the rental price. The lessor’s insurance will often only cover damage to the dump trailer. It may be worth reviewing the coverage to determine whether it may cover injuries to persons and property from the operation of the dump trailer itself.
Pitfalls to Avoid When Renting Dump Trailers
Common mistakes to avoid when renting dump trailer
Dump trailer rental contracts can be quite simple – so simple that parties simply rely on a quick phone call. Yet, this can lead to the very common issue of one party blaming the other when something goes wrong. Common issues that arise in dump trailer rentals include: The first mistake is to simply choose the lowest price. Dump trailer rental prices in the Chicago area vary widely (from a few hundred dollars to over $1,000). Because rentals may vary so much, all too often a party chooses the lowest price without considering other issues. These issues may seem petty, but they can add up to significant costs later. There are two costs that are often not considered when shopping for a dump trailer rental: The contract should specify what exactly is being rented (type of materials and amount). A contract that is vague can lead to differing expectations. With regard to all contracts, a well written contract can prevent problems. In dump trailer rentals, a well-written contract prevents disputes because it allows a court to easily determine what the parties intended when they fashioned the contract. In particular, to avoid the risk, be specific about the materials to be dumped and the amount of material. A common mistake is to simply state "household junk". "Household junk" can be interpreted in multiple ways. However, "household junk" specific to a 2 bedroom condominium does not leave much room for dispute. Another common waste is metal and other recyclable material. This issue can be resolved by specifying in the rental agreement what metals or other recyclables can be disposed of. What happens when a dispute arises or a renter refuses to return a rental item at the end of the term? It has happened more than once, a Trailer Rental company (disguised as "a lawyer") will send a threatening letter. A typical letter will demand the return of the trailer and the rental period fees. However, a letter like this is not enforceable; a judgment is needed to enforce the contract. A deposit is a fee that may be held when the renter goes beyond the contracted rental period. Although there may not seem to be much to a dump trailer rental, a poorly written contract for a dump trailer without specific terms may result in a time consuming dispute over expectations.
Terminating the Contract and Closing the Deal
In general, review the contract line by line, comparing the entirety of it to what you had agreed to with the rental company. You need to pay careful attention to what the rental company has put in writing and match that over against what you have agreed to with the rental company. Rental contracts are notoriously filled with clauses that are vague and difficult to enforce. It is extremely important if you do not understand the language of the contract to carefully review the contract with someone with experience in reviewing contracts.
There may be a lot of things in the contract that you may presume to be there, but exist nowhere in the contract. If you do not address these issues at all, you may estar stuck with them. Even things like how the equipment is maintained while you rent it may or may not be in the contract. If you assume that the rental company will handle it but it is not in the contract, you may be out of luck. You need to examine the payments due under the contract and when they are due to be sure you have the right payment date. Most contracts require that your credit card number be provided, but it is also a good idea to be prepared with a check if necessary. As with any other contract, you need to investigate the availability of damages for breaches, as well as specific performance.
When you are finalizing the contract, be sure that all parties’ obligations under the contract are clearly outlined. You should also keep copies of the contract on both web links and hard copies. Because of the volume of rental cars and trucks, the language of the contract may simply be printed on a single piece of paper. These contracts may also list the precise obligations and rental fees, but this is not always true.
Example of Dump Trailer Rental Agreement Template
Many websites provide sample dump trailer rental contracts that can be downloaded and edited for your specific situation, allowing you to avoid having a dump trailer rental contract drafted from scratch by a legal professional. However, even with the existence of samples, it is still recommended that you have them checked by your lawyer to ensure that nothing has been missed. The sad reality is that a poorly drafted dump trailer rental contract can fully expose you to risk if something goes wrong, which is something you want to avoid at all costs. It might seem expensive to have something reviewed by a lawyer, but it might save you tens of thousands of dollars in the long run, particularly if you will be renting out dump trailers for multiple clients on a regular basis.
The sample dump trailer rental contracts found online are typically nothing more than what is called a "bare bones contract." Essentially, what that means is that they give you a very basic starting point, so that whoever is writing the dump trailer rental contract does not have to write the same thing over and over again. It makes their jobs easier, and it also makes things easier for you, because you have a basis to start with. However, it is not uncommon for them to leave out certain important clauses or provisions that can come back to bite you. For example, there are some dump trailer rental contracts that contain no language regarding state law or other jurisdiction-specific issues, such as specifying the applicable law or forum in the event that there are issues down the road . You want to ensure that this is included so that if you need to file legal action in the future, it is done in exactly the way that you intend. It is also useful to include something such as a waiver of jury trial or mediation clause, to address how both parties will resolve their issues together, instead of jumping straight to court.
There are also some sample dump trailer rental contracts that include specific provisions related to insurance that your insurance company may not approve. This is an important point to look out for when you’re editing the dump trailer rental contract. If your insurance provider doesn’t approve of the terms, then you can’t use that sample contract in its current form, so you will have to go through and edit it to bring it into compliance with your insurance requirements. Again, this is where having a reputable legal professional review the contract can be invaluable.
Essentially, you don’t want to just cut and paste a sample dump trailer rental contract in its entirety and use it as is. Instead, it is vital to look over the terms first and determine whether you are wanting to comply with all of them. If you do not, then you will need to draft a new dump trailer rental contract from scratch. If you do, then you will need to make sure that the terms align up with your insurance policy and state and local laws. Getting your dump trailer rental contract formatted correctly is an essential step and shouldn’t be overlooked.
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