The Equipment Hire Contract is essential for businesses operating in Indonesia that need to formalize equipment rental arrangements. This document is particularly relevant in industries requiring temporary or long-term use of specialized equipment without the capital investment of purchase. The contract must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata) and relevant business regulations. It typically includes detailed specifications of the equipment, rental terms, maintenance obligations, and risk allocation between parties. The agreement is structured to protect both lessor and lessee interests while ensuring compliance with local safety standards, insurance requirements, and business licensing regulations. This type of contract is commonly used in various sectors from construction to manufacturing, where equipment hire is a regular business practice.
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1. Parties: Identification of the equipment owner/lessor and hirer/lessee, including their full legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to the equipment
4. Equipment Description: General description of the equipment being hired, referring to detailed specifications in the schedule
5. Hire Period: Duration of the hire, including start date, end date, and any renewal provisions
6. Rental Payments: Payment terms, including rental amount, payment schedule, security deposit, and late payment consequences
7. Delivery and Collection: Terms for equipment delivery, installation, and collection, including responsibilities for transportation
8. Use of Equipment: Permitted use, operational requirements, and restrictions on equipment usage
9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and replacement of equipment during the hire period
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Termination: Circumstances allowing early termination and consequences of termination
12. Force Majeure: Events excusing performance and procedures during force majeure events
13. Governing Law: Specification of Indonesian law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Import/Export Requirements: For equipment imported from overseas, including customs and regulatory compliance requirements
2. Training and Support: When specialized training or technical support is required for equipment operation
3. Environmental Compliance: For equipment subject to environmental regulations or with potential environmental impacts
4. Subletting: Terms allowing or prohibiting subletting of equipment to third parties
5. Intellectual Property: When the equipment includes software or proprietary technology
6. Data Protection: When equipment usage involves data collection or processing
7. Special Insurance Requirements: For high-value or high-risk equipment requiring specific insurance coverage
8. Currency and Exchange Rate: For international agreements where payments are made in foreign currency
1. Schedule 1 - Equipment Specifications: Detailed technical specifications, model numbers, and condition reports of equipment
2. Schedule 2 - Rental Rates and Payment Schedule: Detailed breakdown of rental rates, payment dates, and additional charges
3. Schedule 3 - Delivery and Collection Details: Specific locations, dates, and procedures for delivery and collection
4. Schedule 4 - Maintenance Schedule: Required maintenance intervals and procedures
5. Schedule 5 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
6. Appendix A - Operating Instructions: Equipment operating procedures and safety guidelines
7. Appendix B - Condition Report Form: Template for documenting equipment condition at delivery and return
8. Appendix C - Incident Report Form: Template for reporting accidents, damage, or equipment failures
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