{"id":733,"date":"2020-12-22T22:08:44","date_gmt":"2020-12-22T12:08:44","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=733"},"modified":"2020-12-22T22:08:46","modified_gmt":"2020-12-22T12:08:46","slug":"dry-hire-agreement","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/dry-hire-agreement\/","title":{"rendered":"What Is a New Zealand Dry Hire Agreement"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">If you wish to hire out your equipment to a third party, y<\/span>ou should use <span style=\"font-weight: 400\">a dry hire agreement. This means that you are letting the third party hire and operate your equipment themselves. You could also provide the personnel t<\/span>o operate the equipment. This is known as <span style=\"font-weight: 400\">a wet hire agreement instead. <\/span>W<span style=\"font-weight: 400\">et and dry hire agreement<\/span>s have different terms<span style=\"font-weight: 400\">. The type of hire agreement you use will often depend on what kind of equipment you are hiring out. This article will outline some important clauses to include in your dry hire agreement including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">condition of equipment;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">liability;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">maintenance of equipment;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">payment and delivery; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">registering your security interest on the PPSR.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Important Clauses for Your Dry Hire Agreement<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Condition of Equipment<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">In your dry hire agreement, you should include a description of the condition of your equipment at the time of its initial hiring. This way, if any damage occurs during the period of its hire, it is easy to confirm that it happened while it was in the hiree\u2019s possession.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Liability<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">It is also important to include who is responsible for fixing the equipment if damage does occur. You should also outline who should cover the costs of repairing the equipment. Usually, this would be the hiree, and you may wish to outline the kinds of services they can access to fix the equipment.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Maintenance of Equipment<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">If the equipment you hire out requires specific storing conditions or other maintenance concerns, then it is a good idea to outline these in your dry hire agreement. This means that the hiree agrees to follow the rules of upkeep for your equipment.<\/span><\/p>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For example, if a vehicle you hire out needs regular servicing, you would put this in your agreement and require the hiree to take it to get serviced.<\/span><\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Usage of Equipment<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">If you are hiring specific equipment that requires a licence, like a forklift licence, it is a good idea to include a term in your agreement outlining that only people with this licence can use your equipment. This covers you if the hiree allows someone unqualified to use your equipment.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">It is also important to set out specific risks that are involved with using your equipment if there is a specialised danger in the process. This way, the hiree is aware of the risks and they are liable if they do not follow the rules that you have set out.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Payment and Delivery of Equipment<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">In your dry hire agreement, you should outline how you are charging for the use and operation of your hire equipment, as well as the period that you are hiring it out if this is for a fixed amount of time.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This also includes how the equipment gets to the hiree. Here, you need to specify:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">whether they are picking it up;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">if are you delivering it; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what the delivery date is.<\/span><\/li><\/ul>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">When the hiring period begins, you also need to specify whether:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">they in possession of the equipment during its delivery time; or<\/span><\/li>\n<li><span style=\"font-weight: 400\">you are still in control of the equipment.<\/span><\/li>\n<\/ul>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">This is important if something goes wrong, as who is in control of the equipment may determine who is responsible for any damage.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Registration on the PPSR<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">In some circumstances, you may be hiring out your equipment for longer than a year or for an indefinite period of time. In that case, you should include a clause in the agreement notifying the hiree of your security interest on your property. The PPSR is the Personal Properties Securities Register, an online database which registers security interests in personal property. When you hire out your property, it is a good idea that you register your security interest on the PPSR as the hirer. This is useful if something goes wrong, for example:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the hiree is unable to pay for the equipment; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your equipment is damaged and they cannot repair it.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Registering your security interest on the PPSR means that it is much easier to claim back your property if any of these situations arise. Your dry hire agreement should have a clause declaring this security interest, and you will also have to file a financing change statement on the PPSR website.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The dry hire agreement needs to notify the hiree that you are doing so, as well as inform them what information of theirs you need for your financing statement. This includes their:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">name; <\/span><\/li><li><span style=\"font-weight: 400\">date of birth;<\/span><\/li><li><span style=\"font-weight: 400\">address; and&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">a description of the property they are hiring.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">It is crucial to have a comprehensive hire agreement to reduce risk when hiring out any equipment of yours. If you outline what exactly your obligations are, and the hirees, it is easier to point to these obligations in the agreement if something were to go wrong. This means you can avoid disputes later on, and any legal costs. If you would like more information or help with your dry hire agreement, contact <a href=\"https:\/\/legalvision.co.nz\/contract-lawyers-lp\">LegalVision\u2019s contract lawyers<\/a> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                 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This means that you are providing equipment for someone to hire, without an operator to run the equipment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is the difference between a wet and dry hire agreement?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">When you hire out your personal property or equipment, you should draft up a hire agreement outlining this process. A dry hire agreement is when you just hire out the equipment itself. A wet hire agreement is when you provide an operator as well as the equipment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What should be in my dry hire agreement?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">You should detail the condition of the equipment you are hiring out, as well as what happens if your equipment is damaged. It is also important to include terms covering your liabilities, and register your security interest in the equipment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is a security interest?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">You can register a security interest on your property through the <a href=\"https:\/\/ppsr.companiesoffice.govt.nz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Personal Properties Securities Register<\/a>. This means that you have a vested interest in the property, and anyone can see that if they look up your property on the register.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/733\" \/>            <input value=\"https:\/\/legalvision.co.nz\/commercial-contracts\/dry-hire-agreement\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Is a New Zealand Dry Hire Agreement\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you wish to hire out your equipment to a third party, you should use a dry hire agreement. This means that you are letting the third party hire and operate your equipment themselves. You could also provide the personnel to operate the equipment. This is known as a wet hire agreement instead. Wet and<a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/dry-hire-agreement\/\">Continue reading <span class=\"sr-only\">&#8220;What Is a New Zealand Dry Hire Agreement&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13236,"featured_media":127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[3],"tags":[25,41,71,72],"class_list":["post-733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-commercial-contracts","tag-personal-property","tag-dry-hire-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin 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