Equipment loan agreement, rotary hoe RH-02

Equipment loan agreement with a condition report and a return date

An equipment loan agreement is what turns a favour into a record: it names the machine, fixes the day it comes back, and says who pays when something breaks. This one lends a rotary hoe from a community garden to a member for six days at no charge, and it fits on two pages.

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Wattlebank Community Garden
Shed 2, 14 Prospect Lane, Wattlebank · tools@wattlebankgarden.example
Equipment loan agreement · Rotary hoe RH-02 · Loan 2027-041Page 1 of 2
Equipment loan agreement · Rotary hoe RH-02 · Loan 2027-041Page 2 of 2
Equipment loan agreement

Made on 9 April 2027 between Wattlebank Community Garden Incorporated, of Shed 2, 14 Prospect Lane, called the Lender, and Dario Feliu of 31 Bellbird Street, called the Borrower.

Rotary hoe
Equipment
6 days
Loan period
15 Apr 2027
Return by
Nil
Hire fee
1. The equipment and the loan period
1.1
What is lent, and the condition report
One Groundsman 6.5 hp rear tine rotary hoe, serial RH-2219-04, at 41.6 engine hours, with the accessories in the table. Both people sign the condition report at handover and again at return, and it settles any later argument about damage.
Item
Quantity
Condition at handover
Noted faults
Rotary hoe, serial RH-2219-04
1
Good, serviced 2 Apr 2027
Scratch on left guard
Tine set, fitted
4
Sharp, no chips
None
Fuel can, 5 litre, full
1
Full at handover
Lid seal perished
1.2
Return date and late return
The loan runs to 4 pm on 15 April 2027, when the Borrower hands the hoe to a committee member at Shed 2 and the return column is filled in. Leaving it outside the shed is not a return. Equipment kept past that time without a written extension is charged at $40 a day. Either person may end the loan early on one day of notice.
2. Use, care and damage
2.1
Who may operate it, and how
Only the Borrower, only at 31 Bellbird Street, never for paid work and never in wet ground. The Borrower reads the operator manual in the toolbox first, wears closed shoes, eye and hearing protection, and stops the engine before clearing a blockage.
2.2
Fuel, oil and cleaning
The hoe goes out with a full 5 litre can of fresh unleaded and comes back the same way, and the Borrower checks the engine oil before each use. Soil is washed off the tines and the underside before return, and a machine returned caked in mud is cleaned at a charge of $35.
2.3
Damage, loss and ending the loan
Blunt tines, a worn belt and paint wear cost the Borrower nothing. Damage means a break, a bend or a loss that did not exist at handover, and the Borrower pays to repair it, capped at $600 or the market value of the hoe. A lost or stolen hoe is reported within 24 hours and paid for at $780, the agreed replacement cost, while a breakdown not caused by misuse is the Lender’s cost. The hoe is at the Borrower’s risk off site.
For Wattlebank Community Garden Incorporated
Name
:
Date
:
Borrower, Dario Feliu
Name
:
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Parties and the loan at a glance
Who is lending, who is borrowing, and a stats strip with the equipment, period, return date and nil fee.
1.1 What is lent, and the condition report
The hoe, its serial number and engine hours, and the table both people sign at handover and at return.
Condition report table
Item, quantity, condition at handover and noted faults for the hoe, the tines and the fuel can.
1.2 Return date and late return
The 4 pm deadline, what counts as a return, the $40 a day late charge and the right to end early.
2.1 Who may operate it, and how
One named borrower, one address, no paid work, and the safety rules from the operator manual.
2.2 Fuel, oil and cleaning
Full can out and full can back, the oil check, and the $35 charge for a machine returned dirty.
2.3 Damage, loss and ending the loan
Fair wear against damage, the $600 repair cap, the $780 replacement figure and who carries the risk.
Signatures
A block for the garden's committee member and one for the borrower.

How to adapt this agreement

For a business lending equipment to a customer, add a hire fee and a security deposit, and raise the repair cap to the full replacement value, because a commercial lender cannot absorb a loss the way a garden can. For a tool library with many borrowers, replace the named borrower with a membership number and move the condition report to a form that travels with the item, so the same table is filled in by whoever is on the desk that day. For equipment that needs a licence or a ticket to operate, add a clause requiring the borrower to hold it and to produce it at handover, and keep a copy with the condition report.

What makes this document work

The condition report is the whole argument, settled in advance

Four rows record the hoe at 41.6 engine hours, a scratch on the left guard and a perished fuel can seal before it leaves the shed. Both people sign the same table again at return, so a dispute about damage becomes a comparison rather than two memories.

Nil fee, but every cost is still named

The loan is free and the stats strip says so. The agreement still prices the three things that go wrong: $40 a day late, $35 for a machine returned caked in mud, and $780 to replace the hoe outright. A free loan with unpriced risk is where friendships end.

Fair wear and damage are defined, not left to argument

Blunt tines, a worn belt and paint wear cost the borrower nothing. A break, a bend or a loss that was not on the handover report costs the borrower the repair, capped at $600 or the market value, whichever is lower, with a quote shared before the work starts.

Questions people ask

What should an equipment loan agreement include?

The people, the equipment with its serial number, the loan period and return time, who may operate it, what happens to fuel and cleaning, who pays for damage and loss, who carries the risk while it is off site, and a condition report signed at handover and again at return. Two pages is usually enough.

Do you need a written agreement to lend equipment for free?

You need it more, not less. A hire agreement has money in it to anchor expectations, while a free loan has nothing except goodwill. The written version records the return date, the condition at handover and the repair cap, which are the three things people remember differently once a machine comes back damaged.

Who is responsible if borrowed equipment is damaged?

In this agreement the borrower pays for damage that happens during the loan, capped at $600 or the market value of the machine. A mechanical failure that is not caused by misuse is the lender's cost. Fair wear, meaning blunt tines or worn paint, costs the borrower nothing at all.

What is a condition report and why sign it twice?

It is a table of what is handed over and the state it is in. Signing it at handover records the scratches that were already there. Signing it again at return records what changed. Without the second signature the first one proves very little, because nobody can say when the damage appeared.

Can the lender ask for the equipment back early?

Yes. This agreement lets either person end the loan on one day of notice, and the lender may collect the same day if the machine is being used unsafely. That is a normal term for shared equipment, where the next person in the queue often matters more than the current borrower's convenience.

Does the borrower need insurance?

This agreement says the equipment is at the borrower's risk while it is off site, because the garden's policy does not cover equipment away from the property. The borrower carries that exposure up to the $600 repair cap and the $780 replacement figure, so a contents policy is worth a call first.

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Sources

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