Terms and conditions for a fleet and vehicle hire business

Fleet hire is car hire with an account, a number of drivers you never meet, and vehicles on the road for months. The terms have to govern the master agreement and each hire under it, make the customer responsible for its drivers, run damage, excess and off-hire inspections, pass on fines that arrive after the vehicle has been returned, and keep maintenance where it belongs. I draft those terms for a fixed fee of £995, delivered in five working days.

Who this is for

Vehicle rental, fleet hire, flexible contract hire and commercial vehicle rental businesses in England and Wales hiring cars, vans and light commercial vehicles to business customers on daily, monthly and long-term hires. These are business-to-business terms.

What matters in fleet hire terms

The master agreement and each hire

The terms should form a framework under which each vehicle is hired by a hire schedule stating the vehicle, period, rate, mileage and any extras, with the framework governing every hire. The customer's account terms should say who may order vehicles, that the customer is bound by orders placed by its staff, and that the hire continues until the vehicle is returned and off-hired in writing.

Drivers, insurance and use

The customer is responsible for every driver, and the terms should require drivers to be licensed, to meet the insurer's conditions, to be declared where the policy requires, and to comply with the law on hours, loads and use, with the vehicle insured as section 143 of the Road Traffic Act 1988 requires throughout. Where the hire company insures, the terms should state the cover and the excess; where the customer insures, the terms should require comprehensive cover naming the hire company's interest. Use outside the UK, towing and carrying hazardous goods need consent.

Damage, condition reports and the excess

Vehicles are at the customer's risk throughout, and the terms should provide for a condition report at delivery and at return, say that damage not recorded at delivery is the customer's, that repairs are charged at cost or a stated tariff up to the excess where insured, and that the customer is liable for the full cost of damage outside the insurance, such as tyres, glass, roof and interior. Late return continues the hire at the daily rate.

Fines, charges and administration

Parking, congestion, toll, speeding and clean air charges arrive at the registered keeper weeks later. The terms should make the customer liable for every charge arising from its use, allow the hire company to transfer liability to the driver, which section 66 of the Road Traffic Offenders Act 1988 permits for fixed penalties where the hire agreement contains the prescribed statement, or to pay and recharge with a stated administration fee, and require the customer to identify the driver on request. The customer's card or account may be debited for such charges.

Maintenance, breakdown, payment and liability

The hire company maintains the vehicle to the manufacturer's schedule with the customer required to present it for servicing, report faults and not repair it, and the terms should say what breakdown cover is provided and that a replacement vehicle is supplied where available. Fees are invoiced monthly in advance with usage charges in arrears, interest and fixed compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998, and a right to repossess for non-payment. Liability should be capped at the hire charges, with consequential loss excluded, tested for reasonableness under the Unfair Contract Terms Act 1977.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

A van came back damaged and the customer says it was already like that. Who wins?

The condition report at delivery. If the terms say damage not recorded at delivery is the customer's and the report was signed or photographed, the customer pays. Without the report, the position cannot be proved.

We keep receiving fines for a vehicle a customer had months ago. Can we recover them?

If the terms make the customer liable for all charges arising from its use and allow you to transfer liability or pay and recharge with an administration fee, yes. Keep the hire schedule so that each charge can be matched to a hire.

The customer has not paid for three months. Can we take the vehicles back?

If the terms give a right to repossess on non-payment after notice, yes. The vehicles are yours; the terms say when you may collect them.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a car hire business
• Terms and conditions for a haulage company

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.