THIS FLATBED TRAILER RENTAL AGREEMENT made in Charlottetown, Queens County, Province of Prince Edward Island, relates to the rental of a flatbed trailer for over-the-road use, together with any attachments, parts and accessories (the 'Trailer'). Between Lessor, AUSTIN MCQUAID RENTAL & LEASING INC., and the Lessee.
RENT
The Lessee shall pay rent to the Lessor, in advance, at the rate of $600.00 plus applicable taxes per month. The payment of rent is due on the 1st day of each month. Notwithstanding that rent is due on the 1st day of each month, the Lessee shall have until the seventh (7th) day of the month to pay the rent by a method other than the credit card on file, failing which the credit card on file shall be charged in accordance with the PAY RENT covenant set out below.
DISTANCE CHARGE AND HUB METER
In addition to the monthly rent, the Lessee shall pay the Lessor a distance charge of $0.07 (seven cents) per kilometre travelled by the Trailer, plus applicable taxes. Distance travelled shall be determined by the hub meter (hubometer) installed on the Trailer. The Lessee shall permit the Lessor to read the hub meter upon request and at the return of the Trailer, and distance charges shall be billed and payable with the monthly rent or upon return of the Trailer, as applicable.
The hub meter shall not be removed, disconnected, altered, obstructed, or tampered with by the Lessee or any other person. REMOVAL OF, OR TAMPERING WITH, THE HUB METER WILL RESULT IN A PENALTY OF $1,000.00 plus applicable taxes, charged to the Lessee, in addition to a distance charge assessed at the Lessor’s reasonable estimate of the distance travelled during the rental. Any damaged or missing hub meter shall also be replaced at the Lessee’s expense.
EQUIPMENT
The Lessee has examined the Trailer and finds it to be in good working order and repair, roadworthy, and suitable for the Lessee’s intended use. The Lessee shall immediately notify the Lessor of any defect or deficiency discovered in the Trailer.
OVER-THE-ROAD USE AND COMPLIANCE
The Trailer is rented for over-the-road use. The Lessee shall ensure that: the Trailer is towed only by a vehicle that is properly rated, equipped and licensed to tow it; every driver towing the Trailer holds a valid driver’s licence of the appropriate class; the Trailer is operated in compliance with all applicable highway traffic, transportation, and safety laws and regulations, including all National Safety Code requirements applicable to the Lessee’s operations; a pre-trip inspection of the Trailer (including lights, brakes, tires, couplings and load securement) is completed before each trip; and all loads are properly secured and within the rated capacity of the Trailer. The Lessee shall not overload the Trailer or exceed any axle or weight rating.
LIABILITY AND ASSUMPTION OF RISK
The Lessee shall be fully liable and responsible for the Trailer, and for any and all damage, loss, injury, death, or claims of any kind arising from or in connection with the possession, use, towing, loading, unloading, or operation of the Trailer, from the time the Trailer is delivered to or picked up by the Lessee until it is returned to the Lessor. The Lessee assumes all risks inherent in the possession, use and operation of the Trailer, including while the Trailer is on any public highway. The Lessor shall have no liability whatsoever for the acts or omissions of any driver or operator, and the Lessee, on its own behalf and on behalf of its drivers, agents, employees and invitees, hereby releases and forever discharges the Lessor, its owners, directors, officers, employees, agents, assignees and any associated companies, from any and all such liability.
INDEMNITY
The Lessee shall indemnify and save harmless the Lessor, its owners, directors, officers, employees, agents, assignees and any associated companies, against and from any and all claims, demands, losses, damages, actions, suits or proceedings of every nature and kind whatsoever, including, without limiting the generality of the foregoing, all claims for bodily injury, death or property damage, arising from or in connection with the possession, use, towing or operation of the Trailer, or any act or omission of the Lessee or any driver, agent, contractor, servant, employee, invitee or licensee of the Lessee, and against and from all costs, counsel fees, expenses and liabilities incurred in or about any such claim.
INSURANCE
Because the Trailer is rented for over-the-road use, the Lessee shall, at its own expense and as a condition of this agreement, obtain and maintain additional insurance for the duration of the rental, including: (a) automobile liability insurance covering the Trailer while attached to and towed by the Lessee’s power unit, in an amount not less than $2,000,000.00 per occurrence; (b) physical damage insurance covering the Trailer for its full replacement value against loss or damage, including collision, fire, theft and vandalism; and (c) cargo insurance covering all goods carried on the Trailer. Such insurance shall name the Lessor as an additional insured and loss payee, and the Lessee shall provide the Lessor with proof of such insurance prior to taking possession of the Trailer and upon request at any time during the rental. The Lessee shall be fully responsible for any loss or damage not covered, or not fully covered, by such insurance, including any deductible.
MAINTENANCE AND DAMAGE REPORTING
The Lessee shall check the condition of the Trailer, including tires, lights, brakes and couplings, before each use, and shall cease using the Trailer immediately upon detecting any malfunction, defect or unsafe condition. The Lessee shall be responsible for the repair of any flat tire or tire damage occurring during the rental. The Lessee shall report any damage, accident or collision involving the Trailer to the Lessor within twenty-four (24) hours of its occurrence, and shall promptly report any accident to the police where required by law.
DAMAGE AND LOSS
The Lessee shall be responsible for and shall pay the Lessor for all damage to the Trailer beyond reasonable wear and tear, including damage caused by the negligent, reckless or willful conduct of the Lessee or any driver, agent, employee, licensee or invitee of the Lessee, and including damage resulting from overloading, improper load securement, collision or misuse. In the event the Trailer is lost, stolen or destroyed, the Lessee shall pay the Lessor the full replacement value of the Trailer, together with the full rental rate as specified until the Trailer is replaced.
RETURN OF EQUIPMENT
The Lessee shall return the Trailer, and all attachments, parts and accessories belonging thereto, in the same condition as received, ordinary wear excepted, and clean and free of debris and residue, with the hub meter intact and in working order. Any clean out or extensive cleaning required will be billed to the Lessee at a rate of $150.00 per hour plus HST, subject to a minimum charge of $200.00 plus HST.
USE AND PROHIBITED USES
The Lessee shall use the Trailer solely for the purposes agreed upon, with care and in accordance with all applicable laws and regulations. The Lessee shall not: use the Trailer for any unlawful purpose; exceed the rated capacity of the Trailer; carry any hazardous materials except in compliance with all applicable laws; affix any banners, signs or other markings to the Trailer, or drill or cut any holes in the Trailer; or alter, modify or tamper with the Trailer, the hub meter, or any safety equipment. The Lessee shall not assign this agreement or sublet the Trailer without the prior written consent of the Lessor.
PAY RENT
The Lessee shall at all times keep a valid credit card on file at the offices of the Lessor as a condition of this agreement. The Lessee may pay rent by cheque, cash, e-transfer, wire transfer, or credit card; however, any payment made by a method other than the credit card on file must be received by the Lessor no later than the seventh (7th) day of the month. If payment has not been received by the seventh (7th) day of the month, the Lessee authorizes the Lessor to automatically charge the full outstanding balance, plus applicable taxes, to the credit card on file on the seventh (7th) day of the month, or on the next business day if the seventh (7th) falls on a weekend or holiday, without further notice. The Lessee further authorizes the Lessor, as an ongoing right, to charge the credit card on file for any and all amounts that remain unpaid more than seven (7) days after they become due — including rent, applicable taxes, distance charges, penalties, and any other charges owing under this agreement — and to re-attempt any such charge from time to time until all outstanding amounts are paid in full. The Lessee’s credit card will not be charged rent if the Lessee ceases to rent a Trailer from the Lessor.
DEFAULT AND REPOSSESSION
If the rent or any other amount owing under this agreement shall be in arrears, or if the Lessee shall make default in the observance or performance of any of the Lessee’s covenants or agreements contained in this agreement, and such arrears or default shall continue for a period of seven (7) days, then the Lessor may give the Lessee notice requiring the Lessee to pay the arrears or remedy the default within fourteen (14) days of receipt of notice. If the Lessee fails to pay the arrears or remedy the default within such period, the Lessor may terminate this agreement and re-take possession of the Trailer, and the Lessee shall make the Trailer available to the Lessor for repossession. All costs associated with the recovery and transport of the Trailer, including mileage, shall be charged to the Lessee’s account and shall be payable by the Lessee.
NOTICE
Any notice or communication to be given by any party to the other hereunder shall be deemed to be duly given when served upon such party or sent by registered mail to the Lessor at their place of business and to the Lessee at the address provided above.
COUNTERPARTS / ELECTRONIC SIGNATURE
This Agreement may be executed and delivered by facsimile or electronic transmission, and may be signed in counterparts, each of which once executed and delivered shall be read together and deemed to be a single agreement. This Agreement may be executed by facsimile, .pdf signature, or any other form of electronic signature by any party, and such signature shall be binding for all purposes hereof without delivery of an original signature being thereafter required.
EXECUTION
Execution of Flatbed Trailer Rental Agreement and Waiver by Lessee:
I/We have read the entire Flatbed Trailer Rental Agreement provided above and I/We confirm that I/We understand and agree to be bound by the terms herein. Without limiting the generality of the Flatbed Trailer Rental Agreement: I/We acknowledge that I/We am/are fully liable for the Trailer and its use on the road; I/We agree to hold harmless and indemnify the Lessor and/or any Lessor employees, assignees or agents for all losses or damages arising from or in connection with the possession, use, towing or operation of the Trailer; and I/We confirm that the additional insurance required by this agreement will be in place before the Trailer is taken on the road.