The Contract Hire Agreement serves as a fundamental document for businesses and individuals seeking to hire vehicles, equipment, or assets for extended periods without the burden of ownership. This agreement type is commonly used in New Zealand when parties wish to establish a long-term hiring arrangement with defined payment terms, maintenance schedules, and usage parameters. The document incorporates essential elements required under New Zealand law, including provisions for consumer protection, fair trading, and financial regulations. It is particularly useful for businesses looking to manage their fleet or equipment needs while maintaining predictable costs and ensuring clear allocation of responsibilities between the hiring company and the hirer.
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1. Parties: Identification and details of the hiring company and the hirer
2. Background: Context of the agreement and general purpose of the hiring arrangement
3. Definitions: Defined terms used throughout the agreement
4. Hire Period: Duration of the hire, including commencement and end dates
5. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of the hired item
6. Rental Payments: Payment terms, amounts, frequency, and payment methods
7. Use and Maintenance: Conditions of use, maintenance responsibilities, and operating requirements
8. Insurance and Risk: Insurance requirements and allocation of risk between parties
9. Hirer's Obligations: Key responsibilities and obligations of the hirer during the agreement
10. Owner's Obligations: Key responsibilities and obligations of the hiring company
11. Termination: Circumstances and process for early termination and its consequences
12. Return of Equipment: Conditions and process for returning the hired item
13. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Purchase Option: Include when the agreement offers an option to purchase the hired item
2. Subhiring: Include when subhiring is permitted or needs to be explicitly prohibited
3. Tracking and Monitoring: Include for vehicles with GPS or monitoring systems
4. Operating Territory: Include when there are geographical restrictions on use
5. Environmental Compliance: Include for equipment with specific environmental requirements or impacts
6. Training Requirements: Include when specific training is required to operate the hired item
7. Modifications: Include when modifications to the hired item may be permitted or prohibited
1. Schedule 1 - Equipment Description: Detailed description of the hired item including make, model, serial numbers
2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including hire charges, deposits, and additional fees
3. Schedule 3 - Maintenance Schedule: Required maintenance intervals and responsibilities
4. Schedule 4 - Insurance Requirements: Specific insurance requirements and minimum coverage levels
5. Schedule 5 - Condition Report: Initial condition report and photographs of the hired item
6. Appendix A - Operating Guidelines: Specific instructions for operation and maintenance
7. Appendix B - Return Conditions: Detailed specifications for acceptable return condition
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