Goods Hire Agreement
A Goods Hire Agreement sets out the obligations, terms and conditions regarding the rental of goods.
Last updated October 24, 2025
Suitable for Australia
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Frequently asked questions
Is it a legal requirement to have an Goods Hire Agreement?
This Agreement is not legally required, however it is certainly encouraged from a legal perspective. This Agreement creates a formal contract between your business and the hirer. It enforces some key protections and limitations. Signed by both parties, the document comprehensively outlines the respective roles and responsibilities. Customers should read and sign the Agreement prior to or at the commencement of the rental of goods. The Agreement can be conveniently attached to an invoice for example. Update your Agreement accordingly to accurately reflect your business’ current rental procedure.
Why should I have an Goods Hire Agreement?
The Agreement has important implications for your business and customers. It is in your business’ best interests to have a detailed and easy-to-understand Agreement. The Agreement provides a strong contractual framework for a drama-free rental experience. Hiring out goods carries invariable risks. This Agreement anticipates and helps manage risks, limits your business’ liability, protects against unwanted costs, and proactively sets out the procedure if things go awry. It also ensures both parties are aware of the consequences of non-compliance with the Agreement. Overall, this helps clarify and manage customer expectations, and thus reduces the risk of dispute and misinformation. The Agreement makes customers better informed, and also encourages consistency on your business’ end with respect to obligations and procedure.
What does this Agreement cover?
This Agreement comprises the terms and conditions of rental, including but not limited to:
- Hire: commencement of the hire period, possibility of extension, return of goods, refund policy
- Payment
- Use, operation and maintenance
- Warranties
- Taxes
- Indemnity
- Loss, damage or breakdown
- Insurance
- Liability
- Repossession
- Completion of hire period
- Default
- Remedies
View Sample Goods Hire Agreement
The Legal Risk Score of a Goods Hire Agreement Template is Low
Our legal team have marked this document as low risk considering:
- The document stipulates that the Hirer is responsible for any loss or damage to the goods during the hire period, which could impose significant financial liability if unexpected incidents occur.
- The agreement makes it clear that the Hirer must comply with all applicable taxes and fees related to the use of the goods, which could lead to additional financial burdens if not properly managed.
- The Hirer is required to return the goods in the same condition and level of cleanliness as received, failing which they must bear the costs for cleaning or repair, potentially adding unforeseen expenses.
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