Standard
Conditions for Hire and Sale of Products - In England & Wales
1 INTERPRETATION
1.1 In these conditions the following words
have the following meanings: “Contract” means a contract which
incorporates these conditions and made between the Customer and the
Supplier for the hire of Hire Goods and/or the sale of Products; “Customer”
means the person, firm, company or other organisation hiring Hire Goods;
“Deposit” means any advance payment required by the Supplier in
relation to the Hire Goods which is to be held as security by the
Supplier; “Force Majeure” means any event outside a party’s
reasonable control including but not limited to acts of God, war, flood,
fire, labour disputes, strikes, sub-contractors, lock-outs, riots, civil
commotion, malicious damage, explosion, terrorism, governmental actions
and any other similar events; “Hire Goods” means any machine, article,
tool, and/or device together with any accessories specified in a Contract
which are hired to the Customer; “Hire Period” means the period
commencing when the Customer holds the Hire Goods on hire (including
Saturdays Sundays and Bank Holidays) and ending upon the happening of any
of the following events: (i) the physical return of the Hire Goods by the
Customer into the Supplier’s possession; or (ii) the physical
repossession or collection of Hire Goods by the Supplier; “Liability”
means liability for any and all damages, claims, proceedings, actions,
awards, expenses, costs and any other losses and/or liabilities; “Products”
means the products sold to the Customer by the Supplier; “Rental”
means the Supplier’s charging rate for the hire of the Hire Goods which
is current from time to time during the Hire Period; “Supplier” means
[NAME OF HAE MEMBER] and will include its employees, servants,
agents and/or duly authorised representatives; “Services” means the
services and/or work (if any) to be performed by the Supplier for the
Customer in conjunction with the hire of Hire Goods including any delivery
and/or collection service for the Hire Goods.
2 BASIS OF CONTRACT
2.1 Hire Goods are hired subject to them
being available for hire to the Customer at the time required by the
Customer. The Supplier will not be liable for any loss suffered by the
Customer as a result of the Hire Goods being unavailable for hire where
the Hire Goods are unavailable due to circumstances beyond the Supplier’s
control.
2.2 Where hire of the Hire Goods is to a
Customer who is an individual and the hire would be covered by the
Consumer Credit Act 1974 the duration of the Hire Period shall not exceed
3 months, after which time the Contract shall be deemed to have
automatically terminated. Accordingly the hire of any Hire Goods is not
covered by the Consumer Credit Act 1974.
2.3 Nothing in this Contract shall exclude
or limit any statutory rights of the Customer which may not be excluded or
limited due to the Customer acting as a consumer. Where the Customer is
acting as a consumer any provision which is marked with an asterisk (*)
may, subject to determination by the Courts, have no force or effect. For
further information about your statutory rights contact your local
authority Trading Standards Department or Citizens Advice Bureau.
3 PAYMENT
3.1 The amount of any Deposit, Rental
and/or charges for any Services shall be as quoted to the Customer or
otherwise as shown in the Supplier’s current price list from time to
time. Where a Deposit is required for the Hire Goods it must be paid in
advance of the Customer hiring the Hire Goods. The Supplier may also
require an initial payment on account of the Rental in advance of the
Customer hiring the Hire Goods.
3.2 The Customer shall pay the Rental,
charges for any Services, monies for any Products and/or any other sums
payable under the contract to the Supplier at the time and in the manner
agreed. The Supplier’s prices are, unless otherwise stated, exclusive of
any applicable VAT for which the Customer shall additionally be liable.
3.3 Payments by the Customer on time under
the Contract are an essential condition of the Contract. Payment shall not
be deemed to be made until the Supplier has received either cash or
cleared funds in respect of the full amount outstanding.
3.4 *If the Customer fails to make any
payment in full on the due date the Supplier may charge the Customer
interest (both before and after judgment) on the amount unpaid at the rate
of 4% above the base rate from time to time of the Supplier’s bank. Such
interest shall be compounded with quarterly rests.
3.5 *The Customer shall pay all sums due to
the Supplier under this Contract without any set-off, deduction,
counterclaim and/or any other withholding of monies.
3.6 The Supplier may set a reasonable
credit limit for the Customer. The Supplier reserves the right to
terminate or suspend the Contract for hire of the Hire Goods and/or the
provision of Services if allowing it to continue would result in the
Customer exceeding its credit limit or the credit limit is already
exceeded.
4 RISK OWNERSHIP AND INSURANCE
4.1 Risk in the Hire Goods and any Products
will pass immediately to the Customer when they leave the physical
possession or control of the Supplier.
4.2 Risk in the Hire Goods will not pass
back to the Supplier from the Customer until the Hire Goods are back in
the physical possession of the Supplier. This shall apply even if the
Supplier has agreed to cease charging the Rental.
4.3 Ownership of the Hire Goods remains at
all times with the Supplier. The Customer has no right, title or interest
in the Hire Goods except that they are hired to the Customer. Ownership of
any Products remains with the Supplier until all monies payable to the
Supplier by the Customer for the Products have been paid in full.
4.4 The Customer must not deal with the
ownership or any interest in the Hire Goods. This includes but is not
limited to selling, assigning, mortgaging, pledging, charging, securing,
hiring, withholding, exerting any right to withhold, disposing of and/or
lending. However the Customer may re-hire the Hire Goods to a third party
with the prior written consent of the Supplier.
4.5 The Supplier may provide reasonably
priced insurance in respect of the Hire Goods at additional cost to the
Rental. Alternatively the Supplier may require the Customer to insure the
Hire Goods on such reasonable terms and for such reasonable risks as the
Supplier may specify. The proceeds of any such insurance shall be held by
the Customer in trust for the Supplier and be paid to the Supplier on
demand. The Customer must not compromise any claim in respect of the Hire
Goods and/or any associated insurance without the Supplier’s written
consent.
5 DELIVERY, COLLECTION AND SERVICES
5.1 It is the responsibility of the
Customer to collect the Hire Goods from the Supplier and return them to
the Supplier at the end of the Hire Period. If the Supplier agrees to
deliver or collect the Hire Goods to and/or from the Customer it will do
so at its standard delivery cost and such delivery and/or collection will
form part of the Services.
5.2 Where the Supplier provides Services
the persons performing the Services are servants of the Customer and once
the Customer instructs such person they are under the direction and
control of the Customer. The Customer shall be solely responsible for any
instruction, guidance and/or advice given by the Customer to any such
person and for any damage which occurs as a result of such persons
following the Customer’s instructions, guidance and/or advice except to
the extent that the persons performing the Services are negligent.
5.3 The Customer will allow and/or procure
sufficient access to and from the relevant site and procure sufficient
unloading space, facilities, equipment and access to power supplies and
utilities for the Supplier’s employees, subcontractors and/or agents to
allow them to carry out the Services. The Customer will ensure that the
site where the Services are to be performed is, where necessary, cleared
and prepared before the Services are due to commence.
5.4 If any Services are delayed, postponed
and/or are cancelled due to the Customer failing to comply with its
obligations the Customer will be liable to pay the Supplier’s additional
standard charges from time to time for such delay, postponement and/or
cancellation except where the Customer is acting as a consumer and the
delay is due to a Force Majeure event.
6 CARE OF HIRE GOODS
6.1 The Customer shall:-
6.1.1 not remove any labels from and/or
interfere with the Hire Goods, their working mechanisms or any other parts
of them and take reasonable care of the Hire Goods and only use them for
their proper purpose in a safe and correct manner in accordance with any
operating and/or safety instructions provided or supplied to the Customer;
6.1.2 notify the Supplier immediately after
any breakdown, loss and/or damage to the Hire Goods;
6.1.3 take adequate and proper measures to
protect the Hire Goods from theft, damage and/or other risks;
6.1.4 notify the Supplier of any change of
its address and upon the Supplier’s request provide details of the
location of the Hire Goods;
6.1.5 permit the Supplier at all reasonable
times to inspect the Hire Goods including procuring access to any property
where the Hire Goods are situated;
6.1.6 keep the Hire Goods at all times in
its possession and control and not to remove the Hire Goods from the
United Kingdom without the prior written consent of the Supplier;
6.1.7 be responsible for the conduct and
cost of any testing, examinations and/or checks in relation to the Hire
Goods required by any legislation, best practice and/or operating
instructions except to the extent that the Supplier has agreed to provide
them as part of any Services;
6.1.8 not do or omit to do any thing which
will or may be deemed to invalidate any policy of insurance related to the
Hire Goods which is notified to the Customer;
6.1.9 not continue to use Hire Goods where
they have been damaged and will notify the Supplier immediately if the
Hire Goods are involved in an accident resulting in damage to the Hire
Goods, other property and/or injury to any person; and
6.1.10 where the Hire Goods require fuel,
oil and/or electricity ensure that the proper type and/or voltage is used
and that, where appropriate, the Hire Goods are properly installed by a
qualified and competent person.
6.2 The Hire Goods must be returned by the
Customer in good working order and condition (fair wear and tear excepted)
and in a clean condition together with all insurance policies, licences,
registration and other documents relating to the Hire Goods.
7 BREAKDOWN
7.1 Allowance will be made in relation to
the Rental to the Customer for any nonuse of the Hire Goods due to
breakdown caused by the development of an inherent fault and/or fair wear
and tear on condition that the Customer informs the Supplier as soon as
practicable of the breakdown.
7.2 The Customer shall be responsible for
all expenses, loss (including loss of Rental) and/or damage suffered by
the Supplier arising from any breakdown of the Hire Goods due to the
Customer’s negligence, misdirection and/or misuse of the Hire Goods.
7.3 The Supplier will at its own cost carry
out all routine maintenance and repairs to the Hire Goods during the Hire
Period and all repairs which are required due to fair wear and tear and/or
an inherent fault in the Hire Goods. The Customer will be responsible for
the cost of all repairs necessary to Hire Goods during the Hire Period
which arise otherwise than as a result of fair wear and tear, an inherent
fault and/or the negligence of the Supplier while carrying out routine
maintenance and/or repairs.
7.4 The Customer must not repair or attempt
to repair the Hire Goods unless authorised to do so in writing by the
Supplier.
8 LOSS OR DAMAGE TO THE HIRE GOODS
8.1 If the Hire Goods are returned in
damaged, unclean and/or defective state except where due to fair wear and
tear and/or an inherent fault in the Hire Goods the Customer shall be
liable to pay the Supplier for the cost of any repair and/or cleaning
required to return the Hire Goods to a condition fit for re-hire and to
pay the Rental, in accordance with the provisions of clause 8.3, until
such repairs and/or cleaning have been completed.
8.2 The Customer will pay to the Supplier
the replacement cost of any Hire Goods which are lost, stolen and/or
damaged beyond economic repair during the Hire Period less the amount paid
to the Supplier under any policy of insurance taken out in accordance with
these conditions.
8.3 The Customer shall pay the Rental for
the Hire Goods up to and including the date it notifies the Supplier that
the Hire Goods have been lost, stolen and/or damaged beyond economic
repair. From that date until the Supplier has replaced such Hire Goods the
Customer shall pay, as a genuine pre-estimate of lost rental profit, a sum
as liquidated damages being equal to two thirds of the Rental that would
have applied for such Hire Goods for that period. The Supplier shall use
its reasonable commercial endeavours to purchase replacements for such
Hire Goods as quickly as possible using the monies paid under clause 8.2
above.
9 TERMINATION BY NOTICE
9.1 If the Hire Period has a fixed
duration, subject to the provisions of Section 10 neither the Customer nor
the Supplier shall be entitled to terminate the Contract before the expiry
of that fixed period unless agreed with the other party.
9.2 If the Hire Period does not have a
fixed duration either of the Customer or the Supplier is entitled to
terminate the Contract upon giving to the other party any agreed period of
notice.
9.3 If no period of notice has been agreed
or specified the Customer may terminate the Hire Period by the physical
return of the Hire Goods to the Supplier and the Supplier shall be
entitled to terminate the hire of the Hire Goods by giving not less than
14 days’ notice to the Customer.
10 DEFAULT
10.1 If the Customer:-
10.1.1 fails to make any payment to the
Supplier when due without just cause;
10.1.2 breaches the terms of the Contract
and, where the breach is capable of remedy, has not remedied the breach
within 14 days of receiving notice requiring the breach to be remedied;
10.1.3 persistently breaches the terms of
the Contract;
10.1.4 provides incomplete, materially
inaccurate or misleading facts and/or information in connection with the
Contract;
10.1.5 pledges, charges or creates any form
of security over any Hire Goods, or ceases or threatens to cease to carry
on business, or proposes to compound with its creditors, applies for an
interim moratorium in respect of claims and/or proceedings, any distress,
execution or other legal process is levied on any property of the
Customer, has a Bankruptcy Petition presented against it or the Customer
takes or suffers any similar action in any jurisdiction;
10.1.6 being a company, enters into
voluntary or compulsory liquidation, has a receiver, administrator or
administrative receiver appointed over all or any of its assets, any
attachment order is made against the Customer, any distress, execution or
other legal process is levied on any property of the Customer or the
Customer takes or suffers any similar action in any jurisdiction;
10.1.7 appears reasonably to the Supplier
due to the Customer’s credit rating to be financially inadequate to meet
its obligations under the Contract; and/or
10.1.8 appears reasonably to the Supplier
to be about to suffer any of the above events; then the Supplier shall
have the right, without prejudice to any other remedies, to exercise any
or all of the rights set out in clause 10.2 below.
10.2 If any of the events set out in clause
10.1 above occurs in relation to the Customer then:- 10.2.1 except where
the Customer is acting as a consumer the Supplier may enter, without prior
notice, any premises of the Customer (or premises of third parties with
their consent) where Hire Goods owned by the Supplier may be and repossess
any Hire Goods;
10.2.2 the Supplier may withhold the
performance of any Services and cease any Services in progress under this
and/or any other Contract with the Customer;
10.2.3 the Supplier may immediately cancel,
terminate and/or suspend without Liability to the Customer the Contract
and/or any other contract with the Customer; and/or
10.2.4 *all monies owed by the Customer to
the Supplier shall immediately become due and payable.
10.3 Any repossession of the Hire Goods
shall not affect the Supplier’s right to recover from the Customer any
monies due under the Contract and/or any damages in respect of any breach
which occurred prior to repossession of the Hire Goods.
10.4 Upon termination of the Contract the
Customer shall immediately:
10.4.1 return the Hire Goods to the
Supplier or make the Hire Goods available for collection by the Supplier
as requested by the Supplier; and
10.4.2 pay to the Supplier all arrears for
Rentals, Charges for any Services, monies for any Products and/or any
other sums payable under the Contract.
11 LIMITATIONS OF LIABILITY
11.1 *All warranties, representations,
terms, conditions and duties implied by law relating to fitness, quality
and/or adequacy are excluded to the fullest extent permitted by law.
11.2 *If the Supplier is found to be liable
in respect of any loss or damage to the Customer’s property the extent
of the Supplier’s Liability will be limited to the retail cost of
replacement of the damaged property.
11.3 Any defective Hire Goods must be
returned to the Supplier for inspection if requested by the Supplier
before the Supplier will have any Liability for defective Hire Goods.
11.4 *The Supplier shall have no Liability
to the Customer if, without just cause, any monies due in respect of the
Hire Goods and/or the Services has not been paid in full by the due date
for payment.
11.5 The Supplier shall have no Liability
for additional damage, loss, liability, claims, costs or expenses caused
or contributed to by the Customer’s continued use of defective Hire
Goods and/or Services after a defect has become apparent or suspected or
should reasonably have become apparent to the Customer.
11.6 The Customer shall give the Supplier a
reasonable opportunity to remedy any matter for which the Supplier is
liable before the Customer incurs any costs and/or expenses in remedying
the matter itself. If the Customer does not do so the Supplier shall have
no Liability to the Customer.
11.7 *The Supplier shall have no Liability
to the Customer to the extent that the Customer is covered by any policy
of insurance arranged as a result of the Contract and the Customer shall
ensure that the Customer’s insurers waive any and all rights of
subrogation they may have against the Supplier.
11.8 The Supplier shall have no Liability
to the Customer for any:-
11.8.1 *consequential losses (including
loss of profits and/or damage to goodwill);
11.8.2 economic and/or other similar
losses;
11.8.3 special damages and indirect losses;
and/or
11.8.4 business interruption, loss of
business, contracts and/or opportunity.
11.9 *The Supplier’s total Liability to
the Customer under and/or arising in relation to any Contract shall not
exceed 5 times the amount of the Rental and charges for Services (if any)
under that Contract or the sum of £1,000 whichever is the higher. To the
extent that any Liability of the Supplier to the Customer would be met by
any insurance of the Supplier then the Liability of the Supplier shall be
extended to the extent that such Liability is met by such insurance.
11.10 Each of the limitations and/or
exclusions in this Contract shall be deemed to be repeated and apply as a
separate provision for each of:
11.10.1Liability for breach of contract;
11.10.2*Liability in tort (including
negligence); and
11.10.3*Liability for breach of statutory
and/or common law duty; except clause 11.9 above which shall apply once
only in respect of all the said types of Liability.
11.11 Nothing in this Contract shall
exclude or limit the Liability of the Supplier for death or personal
injury due to the Supplier’s negligence nor exclude or limit any other
type of Liability which it is not permitted to exclude or limit as a
matter of law.
12 GENERAL
12.1 Upon termination of the Contract the
provisions of clauses 3.2, 3.4, 3.5, 8.1,
8.2, 8.3 and Section 6 shall continue in
full force and effect.
12.2 Each hire of an item of Hire Goods
shall form a distinct Contract which shall be separate to any other
Contract relating to other Hire Goods.
12.3 The Customer shall be liable for the
acts and/or omissions of its employees, agents, servants and/or
subcontractors as though they were its own acts and/or omissions under
this Contract.
12.4 *The Customer agrees to indemnify and
keep indemnified the Supplier against any and all losses, lost profits,
damages, claims, costs (including legal costs on a full indemnity basis),
actions and any other losses and/or liabilities suffered by the Supplier
and arising from or due to any breach of contract, any tortious act and/or
omission and/or any breach of statutory duty by the Customer.
12.5 *No waiver by the Supplier of any
breach of this Contract shall be considered as a waiver of any subsequent
breach of the same provision or any other provision. If any provision is
held by any competent authority to be unenforceable in whole or in part
the validity of the other provisions of this Contract and the remainder of
the affected provision shall be unaffected and shall remain in full force
and effect.
12.6 The Supplier shall have no Liability
to the Customer for any delay and/or non performance of a Contract to the
extent that such delay is due to any Force Majeure events. If the Supplier
is affected by any such event then time for performance shall be extended
for a period equal to the period that such event or events delayed such
performance.
12.7 All third party rights are excluded
and no third parties shall have any rights to enforce the Contract. This
shall not apply to any finance company with whom the Supplier has an
outstanding finance agreement relating to the Hire Goods. Such finance
company shall, subject to the Supplier’s consent, have the right to
enforce this Contract as if they were the Supplier. This Contract is
governed by and interpreted in accordance with English law and the parties
agree to submit to the non-exclusive jurisdiction of the English courts.
Copyright Hire Association Europe 1
November 2001
STANDARD CONDITIONS FOR HIRE AND SALE OF
PRODUCTS - IN ENGLAND AND WALES