Contract Time

N DA WIND · Oct 30, 2006

I'm putting a contract together to sell my driver my semi. In general, my contract consist of me getting 15% of the load and the driver takes care of all maintenace until he pay off the truck, which at that time the drive will own the truck. Can you give me some insite on the ins and outs of these contracts.

themagicoen · Oct 30, 2006

Contact a lawyer! One thing make sure you put something in there that protects the driver, i.e. you go belly up and loose the truck - make sure he doesnt loose all the money he has put into it.

terryandrene · Oct 31, 2006

Lots of folks have done the lease purchase thing where the owner holds the truck title, the lease agreement with the carrier, and receives the settlement from the carrier. He then pays the buyer/driver 85% of the gross settlement to the truck. The owner would then be paying the insurance, if a carrier group plan, Qualcomm, if used, and any other deductions the carrier takes from the settlement.

I think if you are planning such a move, you need a lawyer to draft a lease/purchase document between you and the buyer/driver. You need to be comfortable knowing that your other assets are isolated from the truck.

What if:

The driver does something in a negligent fashion and injures a third party? Will the owner of record of the truck be sued?

The driver abandons the truck 1000 miles from your home?

The truck needs a new transmission when the buyer has little or no investment in the truck? Will he pay for repairs then?

The driver takes too much time off and doesn't meet your minimum revenue requirements?

The driver damages the freight? Who pays the deductable?

The driver damages the truck? Who pays the deductable?

The carrier cancels your lease agreement because the driver has a preventable accident or a couple of traffic tickets and no longer meets the carrier's standards?

N DA WIND · Nov 1, 2006

THANKS FOR THE INSIGHT, YOU RAISED ALOT OF GOOD POINTS. DOES ANY ONE HAVE A GOOD CONTRACT I CAN READ OVER? I HAVE A LAYER, BUT SHE DOESN'T KNOW MUCH ABOUT THE INDUSTRY. I'M LOOKING FOR A CONTRACT FOR A LEASE BUY OUT, AND A 60/40. THANKS FOR THE GOOD INFO.

MDB1 · Nov 1, 2006

N DA WIND said, " I HAVE A LAYER, BUT SHE DOESN'T KNOW MUCH ABOUT THE INDUSTRY."

This is serious business. This is not the time to be thinking about getting LAID.;-) ;-) You need to get a good LAWYER that already knows something about the trucking industry.

panther_art · Nov 1, 2006

HERE WE GO AGAIN SOMEONE MAKING FUN OF SOMEONES SPELLING

bernieh48 · Nov 1, 2006

Another point to add is if the owner dies for some reason then you need to have something in the contract about what will happen with the truck then. Esp. if the driver has paid on it quite a bit. Have some way to cover the driver as well.

nightcreacher · Nov 2, 2006

many years ago,I was in a partnership,I put up labor,he put up truck,we split profit,was working well,til he desided to get rid of wife,he'd went bankrupt, we lost our authority,as everything was based on his major business,guess what happened to my half of truck,and I had a contract with,oh well,live and learn