What You Need To Know About Hire Agreements (2025 Updated)

Contents

What Is A Hire Agreement?

Hire or Rental Agreements set out the terms and conditions by which customers hire or rent goods or equipment from your business. These contracts establish a binding agreement that outlines both parties’ responsibilities – from payment details and liability to the condition and delivery of the goods. In 2025, many businesses are leveraging digital hire agreements, enabling customers to review and accept terms electronically, which streamlines transactions and reduces administrative delays.

When Do You Need A Hire Agreement?

If you’re running a business that involves the hire or rental of goods or equipment, it’s always a good idea to have a contract in place. A Hire Agreement clarifies the roles and responsibilities of both you and your customer, reducing the likelihood of disputes. In today’s digital environment, where remote transactions and online payments are increasingly common, having a robust Hire Agreement helps secure your revenue streams and protect your business interests.

How Do You Use It?

Hire Agreements are sometimes drafted as formal contracts that are signed by both your business and your customers. However, it’s increasingly common to attach your Hire or Rental Agreement to an invoice, form, or proposal, with the terms being accepted digitally. This method simplifies the process and ensures the agreement is seamlessly integrated into both online and in-person transactions.

Rather than requiring a physical signing block, the agreement often includes a statement such as: “By ordering, accepting, or paying for any goods or equipment provided by us, you are deemed to have accepted these terms and conditions.” This approach is particularly effective in expediting the process while maintaining clear legal obligations.

Hire Agreement Example

Joey has a marquee hire company. When a customer arranges to hire a marquee for their event, Joey sends them an invoice with a Hire Agreement attached. Once the customer accepts and pays, Joey sets up the marquee and then takes it down afterwards. The Hire Agreement sets out the terms and conditions of hire, including that the price is calculated on an hourly rate and that an additional fee applies if the customer wishes to retain the marquee beyond the initially agreed timeframe.

What’s In It?

Here are the sorts of issues that are typically covered in a Hire Agreement:

Description of The Goods – Make sure you are clear about exactly what is being hired out and the condition it is in.
Payment – What is the price, how is payment made, and how do refunds work?
Dispute Resolution – What happens if a dispute occurs? Is there a process (such as mediation) that must be followed before court action is taken?
Customer Obligations – What responsibilities does the customer have regarding the hired goods or equipment? How is damage or theft handled?
Liability – To what extent would your business be liable if something goes wrong or if someone suffers loss as a result of using the hired goods or equipment?
Maintenance and Insurance – What provisions are in place for routine maintenance, and how is insurance handled in the event of damage?

Need Help With A Hire Agreement For Your Business?

Putting together a Hire or Rental Agreement can seem like a daunting process, as it’s challenging to know which details to include and how best to word them. Investing in expert legal support can help prevent disputes, reduce misunderstandings, and ultimately save you from future headaches.

At Sprintlaw, we have a team of experienced lawyers who can assist with your Hire or Rental Agreement, as well as other legal documents your business may need. Get in contact with one of our consultants for a no-obligation chat about how we can help.

In 2025, digital transformation continues to reshape the way businesses manage contracts. It is essential to have your Hire Agreement periodically reviewed to ensure it complies with the latest legislative changes and industry standards. Our Contract Review and Redraft service can help ensure your agreements remain robust and up-to-date with current Australian Consumer Law. Additionally, complementing your Hire Agreement with a comprehensive Website Terms & Conditions and Privacy Policy offers even greater protection for your digital operations.

Minna Boyle

Minna is the Head of People & Culture at Sprintlaw. After completing a law degree and working in a top-tier firm, Minna moved to NewLaw and now manages the people operations across Sprintlaw.