Question: Should I Add a Waiver Form to My Hire Agreement?Answer:
A hire agreement is a written agreement between a business (the lender) and the individual/business (the borrower) who borrows the equipment. Many businesses include a clause in the hire agreement that limits their liability, known as an indemnity clause. However, some businesses choose to use a separate waiver form.
A waiver form is a 1-2 page contract used by businesses for any injuries or death associated with an activity or product they are providing to customers. Businesses generally use waiver forms for risky activities, such as bungee jumping, skydiving, bubble soccer or rock climbing.
A waiver form states that the customer “waives” their right to sue for injury, death or other losses because of the activity or product. The form can list risks connected to the product or activity (inherent risks) or more remote risks that lead to probable injury or death.
A waiver form operates like an indemnity clause by addressing risks and limitations of liability for a business. However, you may prefer to provide a separate waiver form because the form:
- is short which allows the customer to read about the risks; and
- alerts customers to risks that influence the way they use equipment. Your customers are less likely to damage the equipment and you can save on unwanted maintenance.
You may also owe other obligations at law besides making your customers aware of the risks. For example, under the Australian Consumer Law, your equipment is of reasonable standard and deliver any services competently and professionally.