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How to draw up a car rental agreement

Renting a car is a convenient solution for people on business trips and traveling, as well as in cases where it is challenging to perform one-time tasks without a car. Theuse of rental cars is possible in Kyiv and other cities of Ukraine based on official documents drawn up by the parties to the transaction. A car rental agreement provides the right to use the equipment to meet their own needs. The essence of the document is the transfer by the owner of the car of the rights to use the vehicle to an individual or company within a certain period and for a specified fee.

A document is drawn up according to the existing legislatively approved model. Provided that both parties to the transaction are appropriately drafted and executed, they receive equal protection from possible problems. Timely execution of the document is essential since vehicles are subject to high risks (incorrect operation, accidents, theft) and are often operated in extreme conditions. The conclusion of the contract is possible by power of attorney provided by the authorized person of the lessor.

Document Components

A car rental agreement is valid if it contains:

  • The exact parameters of the subject of the transaction, namely information about the model and color of the car, body number, and year of manufacture. The state number of the vehicle and the chassis number must also be indicated.
  • Information about a particular car's shortcomings, including the body and interior condition.
  • Rent price. The amount of monetary remuneration for the vehicle's operation must be registered.
  • Contract time. If the contract term can be extended, this information must be indicated.

A mandatory item is a listing of the rights and obligations of the parties to the transaction. For example, the paper indicates which party provides the vehicle with fuel and lubricants, is responsible for maintenance, and pays for repairs in case of damage to the car.

Reasons for concluding a car rental agreement

The main reason for concluding a car rental agreement is the possibility, in the presence of a title document, of resolving disputes between the lessor and the lessee and ensuring the protection of the interests of both parties. The need to draw up a contract is also due to the possibility for the temporary owner to confirm the legality of using the vehicle. If disputes cannot be resolved out of court, the paper becomes the official basis for applying to the judicial authorities, including in a violation of contractual obligations. The landlord can also indicate in the contract format the presence of third parties with the property right.

The document does not have strict drafting criteria so that you can use a sample form.

Signing procedure

The signing of a vehicle lease agreement provides for the familiarization of both parties with all the points of the document. The paper is signed only with the consent of both parties. If any points cause disagreement, the landlord and tenant must resolve the issues before they enter and sign an agreement.

Document Features

The most important clauses of the contract are the enumeration of the rights and obligations of the parties to the transaction.

The lessee has the right to sublease the car without the consent of the lessor and perform various transportations unless the terms of the document prohibit this. The landlord has the right to terminate the transaction in case of violation of the terms of the contract.

The obligations of the tenant are to pay the costs of using the car and pay compensation to the owner in case of damage to the vehicle (if his fault in the accident is proven). Furthermore, the lessor is obliged to maintain the car in proper condition, including partial or significant repairs, to ensure the technical supply of the car. Car insurance is the responsibility of the lessor.

Since the car is an object of increased danger, the parties to the transaction must have:

  • driver license;
  • appropriate certification.

The lessee must also provide a license for the right to engage in business activities if he plans to carry out transportation.

Contents of a car rental agreement

The car rental agreement must contain, in addition to the rights and obligations of the participants, the following information:

  • purpose of renting a vehicle;
  • information on the act of acceptance and transfer of movable property;
  • the cost of the contract to be concluded and the tenant's settlement procedure.

In addition to the total cost of the lease, the number of monthly payments and the terms of payments are prescribed.

If the lessee plans to rent a car with a crew (driver), the lessor pays the driver's wages according to the contract.

Validity periods

The duration of the lease is an essential point in the legal document, which must be specified precisely. In addition, if the landlord provides rental extension services, the document must indicate the acceptable terms and conditions for the return of equipment.

Responsibility of the parties

In addition to the main points describing the parties' responsibility, the document may indicate additional points. For example, the landlord may designate the tenant's responsibility in case of violation of the terms for making the rental fee or in the case of subleasing a car that is not provided for by the conditions.

Why do I need a deposit when renting a car?

A car is an expensive property, so when renting a car, the owners require a deposit in the form of money. According to contractual obligations, the deposit may not be returned or returned only partially by the present owner in cases where the tenant:

  • refused to compensate for damages caused to the car during operation;
  • did not report damage to the vehicle or its loss (hijacking, sale);
  • transferred the car to third parties without the consent of the owner;
  • delayed rent or paid it very late.

The owner of the vehicle can withhold the deposit or terminate the contract.

Reasons for terminating the agreement

The main reasons for terminating a lease agreement are:

  • Lack of rent for car rental.
  • Using the car for other purposes or transferring it to a third party for use.

The tenant may terminate the contract:

  • if the characteristics of the machine do not correspond to those declared;
  • if the owner does not perform maintenance and repair of the car.

The contract may also be terminated early in the event of the death of the vehicle owner.

Without proper experience, it is tough to draw up and write a correct car rental agreement, so the right decision is to contact professional lawyers or a notary.

An example of a car rental agreement

An example of a car rental agreement

An example of a car rental agreement 1

An example of a car rental agreement 2

An example of a car rental agreement 3

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