Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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Running an event hire business can be rewarding, but it can also be stressful when equipment comes back scratched, stained, missing or three days late.
Whether you hire out marquees, chairs, tables, lighting, sound gear, staging, styling items or party equipment, your terms and conditions are what help you turn an awkward conversation into a clear process.
The good news is that your event hire terms and conditions don't need to be full of legal jargon. They just need to set out who is responsible for the equipment, how bonds work, what happens if plans change, and what you'll do if something goes wrong.
Do You Need Event Hire Terms And Conditions?
Yes - if you hire out event equipment, you should have written hire terms and conditions that your customer accepts before the hire starts.
A quote and invoice are useful, but they usually don't cover the practical issues that cause disputes. For example, what happens if the venue has no loading access, the customer leaves furniture outside in heavy rain, or your festoon lights are returned tangled and broken?
Your terms should sit alongside your booking process and make the rules clear from day one. Ideally, your customer accepts them when they confirm the booking, accept your booking terms, pay the deposit or sign the hire agreement.
If you deal with consumers or small businesses, the Australian Consumer Law can affect how your terms are drafted. The unfair contract terms regime applies to many standard form consumer and small business contracts. Since changes that took effect in November 2023, unfair contract terms can attract penalties, so one-sided clauses are a real risk.
That doesn't mean you can't protect your business. It means your terms should be fair, transparent and linked to genuine business risks.
For an event or party hire business, strong terms usually cover:
- what equipment is being hired and for how long
- delivery, collection and access requirements
- bonds, deposits and payment timing
- damage, loss, cleaning and late return fees
- weather, outdoor use and site conditions
- cancellations, postponements and changes
- customer responsibilities during the hire period
- limits on what you're and aren't responsible for
What Should Your Bond Clause Say?
Your bond clause should say how much the bond is, when it's payable, what it can be used for, and when you'll return any balance.
A bond is usually a security amount held to cover damage, loss, extra cleaning, late returns or unpaid amounts. It shouldn't be treated like a surprise penalty. The clearer you're upfront, the easier it's to rely on the bond later.
There's usually no fixed legal maximum for an event hire bond in Australia, but the amount should be reasonable for the value and risk of the hire. A $300 bond for a small furniture package may be sensible. A much higher bond may be reasonable for a marquee, staging or audio package worth thousands of dollars.
What To Include In A Bond Clause
- Bond amount: state the dollar amount or how it will be calculated.
- Payment timing: say whether it's due at booking, before delivery or before collection.
- What it covers: damage, loss, theft, cleaning, late fees, missing parts, unpaid hire fees and recovery costs.
- Inspection process: explain that you'll inspect the equipment after return or collection.
- Refund timing: give a practical timeframe, such as within 7 business days after inspection if there are no deductions.
- Deductions: say you'll provide details of any deductions and refund any remaining balance.
If you take a card pre-authorisation instead of holding funds, say so clearly. Also make sure your payment provider's rules line up with your terms, especially for timeframes and customer authorisations.
If your terms say you can keep the whole bond for any breach, that may be risky. It's usually safer to deduct the actual amount needed to cover the issue and refund the balance.
Who Pays If Hire Equipment Is Damaged, Lost Or Returned Late?
The customer can be responsible for damaged, lost or late-returned equipment if your terms clearly say so and the clause is fair in the circumstances.
Your event hire terms should make the customer responsible for the equipment from the time it's delivered, collected or made available until it's returned to you or collected by your team. This is the core risk period.
Be specific about what counts as damage. For party hire terms and conditions, common examples include:
- broken chairs, cracked tables or bent frames
- stained linen, cushions or soft furnishings
- burn marks, candle wax or smoke damage
- water damage from outdoor exposure
- missing cords, covers, pegs, poles or cases
- equipment returned dirty beyond ordinary use
- items not packed or stacked as required
You should also say how replacement costs are calculated. For example, you may charge the reasonable cost to repair an item, or if repair isn't practical, the replacement cost of an equivalent item. For unique, discontinued or custom items, your terms should explain how you'll assess a reasonable replacement.
A Worked Example
Say Mia runs a party hire business in Adelaide. A customer hires 40 timber chairs, 6 trestle tables and 2 umbrellas for a backyard engagement party. The bond is $500.
When the items come back, 4 chairs are broken beyond repair, one umbrella is missing, and the tables need extra cleaning. Mia's terms say replacement chairs are charged at $85 each, the umbrella replacement is $190, and extra cleaning is charged at $70.
The total deduction is $600: $340 for chairs, $190 for the umbrella and $70 for cleaning. Mia applies the $500 bond and invoices the remaining $100. Because her terms explained these charges upfront and she took photos before and after the hire, she has a much stronger position if the customer disputes it.
Can You Use A Damage Waiver For Event Hire?
Yes, you can use a damage waiver, but it needs to be carefully worded so customers don't misunderstand what it covers.
A damage waiver is usually an extra fee the customer pays so you won't charge them for certain accidental damage. It isn't the same as insurance unless you're actually providing an insurance product, which can raise separate licensing issues.
If you offer a damage waiver for event hire, your terms should answer these questions:
- Is the waiver optional or built into the hire price?
- What types of accidental damage are covered?
- Is there a claim cap, such as up to a certain dollar amount?
- Does the customer still need to pay an excess?
- What is excluded, such as theft, loss, misuse, gross negligence, weather damage or damage from prohibited use?
- Does the customer need to report damage within a certain time?
The Australian Consumer Law also prohibits misleading or deceptive conduct. So if the waiver is called full cover but has a long list of exclusions, that could cause problems. Use plain labels and plain wording.
A damage waiver also shouldn't be used to avoid your own legal obligations. For example, if you're supplying goods or services to a consumer, the consumer guarantees under the Australian Consumer Law may apply. Your terms shouldn't suggest that the customer loses rights they can't legally lose.
For many hire businesses, a well-drafted waiver can be useful for low-level accidental damage, while your main terms still deal with loss, theft, late returns and serious misuse.
What Happens If Delivery Access, Weather Or Cancellations Go Wrong?
It depends on what went wrong, but your terms should allocate responsibility before the event day so you're not negotiating under pressure.
Event hire often depends on things outside your direct control. A venue may have stairs but no lift. A council park booking may not allow vehicle access. A customer may want your furniture on wet grass. None of these issues are unusual, but they need clear rules.
Delivery And Site Access
Your delivery clause should require the customer to provide safe, legal and practical access. This can include:
- accurate delivery and collection addresses
- parking, loading zones and lift access
- clear pathways and site access at the agreed time
- someone authorised to accept delivery
- details about stairs, slopes, distance from vehicle to setup area and security requirements
If access isn't available, your terms can allow you to charge waiting time, extra labour, redelivery fees or cancellation charges. These amounts should be reasonable and linked to your actual costs.
Weather And Outdoor Use
Your terms should say whether equipment can be used outdoors and what the customer must do in bad weather. For example, you may require customers to move certain furniture undercover, close umbrellas during high winds, or avoid using electrical items in wet conditions.
If weather makes delivery unsafe, you should have a process for postponement, substitution or cancellation. For marquees and structures, you may also need to consider manufacturer instructions, engineering limits and any local council or venue rules.
Cancellations And Date Changes
Cancellation clauses work best when they're easy to understand. For example, your terms might say a customer receives a refund less reasonable admin costs if they cancel more than 30 days out, pays 50% if they cancel 14 to 30 days out, and pays the full hire fee if they cancel within 14 days.
The exact timing and amounts should match your business model. If your cancellation fee is much higher than your likely loss, it may be harder to enforce and may raise unfair contract term concerns.
What Should An Equipment Hire Contract In Australia Include?
An equipment hire contract in Australia should include the commercial details of the booking and the legal rules that protect your equipment, payments and delivery process.
Equipment hire agreement templates can be a helpful starting point, but they often miss the details that make your business different. A marquee hire business has different risks from a styling props business or an AV hire business. It's worth having a lawyer tailor the document before you use it with customers.
Fill-In Outline For Your Event Hire Terms
- Business details: include your legal business name, ABN, contact details and trading name if relevant.
- Customer details: capture the hirer's name, contact details, event date, venue and billing details.
- Hire items: describe the equipment, quantities, accessories, condition and any special instructions.
- Hire period: state the start time, end time, delivery window, collection time and any extension rules.
- Fees and payment: set out hire fees, booking deposits, bonds, delivery charges, late fees and payment due dates.
- Bond clause: explain what the bond covers, how deductions work and when the balance is refunded.
- Customer responsibilities: cover care of equipment, safe use, supervision, storage, packing and return obligations.
- Damage and loss: state repair, replacement, cleaning and missing item charges, including how costs are calculated.
- Delivery and access: set rules for site access, parking, stairs, delays, failed delivery and extra labour.
- Weather and outdoor use: explain weather limits, customer duties and what happens if conditions are unsafe.
- Cancellations and postponements: include clear timeframes, fees, credits and date change rules.
- Liability and Australian Consumer Law: limit your liability where legally allowed, without excluding rights that can't be excluded.
- Disputes and records: set a process for raising issues, inspecting equipment and providing photos or invoices.
If you hire equipment for longer periods, get tailored advice on whether the Personal Property Securities Act 2009 could be relevant. Some longer-term hire arrangements can create extra registration issues, especially where valuable equipment is involved.
Key Takeaways
- Your event hire terms and conditions should be accepted before the booking starts, not after something goes wrong.
- A bond clause should explain the amount, timing, deductions, inspection process and refund timeframe.
- Damage, loss, cleaning and late return fees are easier to recover when your terms use clear examples and reasonable calculations.
- A damage waiver can be useful, but it must clearly state what is covered and what is excluded.
- Delivery access, weather and cancellation clauses help you manage the practical problems that often happen on event days.
- Australian Consumer Law rules, including unfair contract term protections, should be considered when drafting your standard terms.
If you'd like help with your event hire terms, bond and damage clauses, cancellation wording or an equipment hire agreement tailored to your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
Make the contract match the deal
What should you test beyond the template?
Scope, payment, dependencies, liability, IP, change and exit clauses should work together for the actual relationship. They should not just read well in isolation.
Alex SoloCo-Founder
