What’s in a leasing contract??

tscottme · Apr 22, 2020

13'trucker said: ↑

When leasing on to a company is it normal for them to “say” they give a certain percentage but don’t put it in the contract. Also say it can be at there discretion. Should I have them put the 83% into the contract? Please help.
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You can join OOIDA for $45. OOIDA will review your lease before you sign it, if you are a member. They can at least tell you what is unusual or what is consistent with other leases before you sign it.

Ridgeline · Apr 23, 2020

wis bang said: ↑

Some companies have different rates for different places.

Their lease is standardized boilerplate and refers to the addendum for actual numbers.

All the specifics regarding what is expected/demanded from the lessor and what the carrier provides in general; like the insurance coverage and the need for Non-Trucking liability [often called bobtail in error] and Physical damage coverage which is usually already required by the banking institution holding the loan/title.
Then the local specifics are listed in the addendum. The old fashioned, one-page lease we still use even has a place where any addendum, if included, is listed and/or the word none if there is no addendum...confused yet?

READ EVERYTHING!

If you do not understand any part, stop everything and get a satisfactory explanation.

NEVER sign it thinking I can read it later, this is a contract and you can be legally forced to live up to it.

When I am signing up an owner operator I point out the 'NONE' in the addendum line by joking 'there is no addendum saying we won't pay you for the third Thursday of each month'.....

WATCH OUT FOR any language regarding charging anything back; look out for the word 'recover' especially in the insurance section. There could be a clause that an insurance company WILL use saying you are liable for XX% of the damages.

My last place had an in-house lawyer and a 17 page lease with addendum(s) and had a few 'hidden' agenda's. MEGA carriers have even more lawyers and wordy leases. You have to read it and understand it or it CAN come back to bite you!
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You are entitled to reviewing that contract at your own pace. This means the carrier is to release the actual contract you sign, you are allowed to take it to a lawyer to read through it and explain everything without the carrier being involved.

tscottme said: ↑

You can join OOIDA for $45. OOIDA will review your lease before you sign it, if you are a member. They can at least tell you what is unusual or what is consistent with other leases before you sign it.
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This is the best solution, just spend the $45 and get ooida involved, they will explain it to you.

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