Who is liable if the rented equipment is stolen from the site?

Whatever the contract says. In the absence of specific wording, the general rule under the law of bailment is that the hirer must take reasonable care of the equipment, and is liable for loss / damage caused by their negligence but not for loss beyond their reasonable control. In practice, however, high-value equipment rentals are usually structured so that the hirer bears the risk of theft or damage during the hire period regardless of fault — that is why the security deposit exists, and why the contract often requires the hirer to hold all-risk insurance. Read this clause carefully before signing.

When the equipment is returned, who decides if it is in acceptable condition?

The rental contract should specify a joint inspection at the moment of return — both parties sign off on the returned condition against a pre-hire condition report (also signed by both). Any damage found at that joint inspection is chargeable against the security deposit at the agreed rates. Skipping the joint inspection is what turns almost every equipment return into a disputed damage bill — the customer says 'it was already like that', the owner says 'no it wasn't', and neither side has evidence.

Equipment & Asset Rental

Equipment and asset rental agreements — construction equipment (excavator, roller, mixer), electronic equipment (projector, sound system, camera), industrial machinery, event equipment (tent, chair, table), medical equipment, agricultural equipment — cover the growing rental-instead-of-buy economy in Bangladesh. These contracts blend the general rules of hire (bailment plus reward) with equipment-specific issues: who bears the risk of theft or damage during the hire period, who is responsible for operator training and safety, what the return-condition standard is, and how deposits protect against unpaid dues.

Stamp & registrationEquipment hire contracts are governed by the general Contract Act, 1872 and the law of bailment. Most run on Tk. 300 non-judicial stamp with a formal deposit against damage. Insurance responsibility must be spelled out — for high-value construction machinery, the hirer typically has to carry all-risk cover during the hire period, since the owner's asset is in the hirer's possession. If the operator is provided by the owner (as with an excavator), the operator is the owner's employee, not the hirer's, and the contract should reflect that for accident-liability purposes.

Contract types in this category

Frequently asked questions

Who is liable if the rented equipment is stolen from the site?: Whatever the contract says. In the absence of specific wording, the general rule under the law of bailment is that the hirer must take reasonable care of the equipment, and is liable for loss / damage caused by their negligence but not for loss beyond their reasonable control. In practice, however, high-value equipment rentals are usually structured so that the hirer bears the risk of theft or damage during the hire period regardless of fault — that is why the security deposit exists, and why the contract often requires the hirer to hold all-risk insurance. Read this clause carefully before signing.
When the equipment is returned, who decides if it is in acceptable condition?: The rental contract should specify a joint inspection at the moment of return — both parties sign off on the returned condition against a pre-hire condition report (also signed by both). Any damage found at that joint inspection is chargeable against the security deposit at the agreed rates. Skipping the joint inspection is what turns almost every equipment return into a disputed damage bill — the customer says 'it was already like that', the owner says 'no it wasn't', and neither side has evidence.

Equipment & Asset Rental

Frequently asked questions

Who is liable if the rented equipment is stolen from the site?: Whatever the contract says. In the absence of specific wording, the general rule under the law of bailment is that the hirer must take reasonable care of the equipment, and is liable for loss / damage caused by their negligence but not for loss beyond their reasonable control. In practice, however, high-value equipment rentals are usually structured so that the hirer bears the risk of theft or damage during the hire period regardless of fault — that is why the security deposit exists, and why the contract often requires the hirer to hold all-risk insurance. Read this clause carefully before signing.
When the equipment is returned, who decides if it is in acceptable condition?: The rental contract should specify a joint inspection at the moment of return — both parties sign off on the returned condition against a pre-hire condition report (also signed by both). Any damage found at that joint inspection is chargeable against the security deposit at the agreed rates. Skipping the joint inspection is what turns almost every equipment return into a disputed damage bill — the customer says 'it was already like that', the owner says 'no it wasn't', and neither side has evidence.