Motor Vehicle Lease Agreement - Template, Sample Form Pro · PH-law
✓ Valid in Philippines · drafted to comply with local law
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MOTOR VEHICLE LEASE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Motor Vehicle Lease Agreement (the "Agreement") is made and entered into this ________ day of ________, 20________, at the City/Municipality of ________, Province of ________, Republic of the Philippines, by and between:
________, Filipino, of legal age, single/married, with residence and postal address at ________, hereinafter referred to as the "Lessor";
- and -
________, Filipino, of legal age, single/married, with residence and postal address at ________, hereinafter referred to as the "Lessee".
The Lessor and the Lessee shall hereinafter be referred to individually as a "Party" and collectively as the "Parties".
WITNESSETH: That —
WHEREAS, the Lessor is the absolute and registered owner of a certain motor vehicle, more particularly described hereinbelow, free from all liens and encumbrances except as may be herein disclosed;
WHEREAS, the Lessor desires to lease the said motor vehicle to the Lessee, and the Lessee desires to lease the same from the Lessor, under the terms and conditions herein set forth;
NOW, THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants and stipulations hereinafter contained, the Parties hereby agree as follows, pursuant to Articles 1642 to 1688 and other pertinent provisions of the Civil Code of the Philippines (Republic Act No. 386):
Art. I. LEASED MOTOR VEHICLE
The Lessor hereby leases unto the Lessee, and the Lessee hereby leases from the Lessor, the following motor vehicle (the "Motor Vehicle"), more particularly described as follows:
Manufacturer or Brand: ________
Series: ________
Type of Body: ________
Year Model: ________
Motor No.: ________
Serial or Chassis No.: ________
Plate No.: ________
Certificate of Registration No.: ________
Official Receipt No.: ________
The transaction between the Lessor and the Lessee, including any services relating to the lease of the Motor Vehicle, shall hereinafter be referred to as the "Lease".
Art. II. DURATION OF THE LEASE
The Lease shall commence on ________ (the "Start Date") and shall expire on ________ (the "End Date"), at ________ (the "Designated End Time"), unless sooner terminated in accordance with this Agreement. The mere expiration of the period herein fixed shall ipso facto cause the termination of the Lease without need of further demand or notice, and there shall be no implied renewal under Article 1670 of the Civil Code, any extension being subject to a separate written agreement of the Parties.
Art. III. RENTAL PRICE AND FEES
The Lessee shall pay the Lessor a flat fee of ________ Pesos (₱________) for the lease of the Motor Vehicle (the "Rental Price").
The Lessee shall pay a delivery fee of ________ Pesos (₱________) (the "Delivery Fee").
Should the Motor Vehicle not be returned to the Lessor by the Designated End Time on the End Date, the Lessee shall pay a late fee of ________ Pesos (₱________) per ________.
The Rental Price and the Delivery Fee shall be paid on ________. All amounts payable under this Agreement are exclusive of value-added tax and other taxes which may be due under the National Internal Revenue Code, as amended, which shall be for the account of the Party legally liable therefor.
Art. IV. SECURITY DEPOSIT
The Lessee shall pay a deposit of ________ Pesos (₱________) (the "Deposit") to guarantee the Lessee's full and faithful performance of the terms and conditions of this Agreement and as security for any damage to or loss of the Motor Vehicle, or any loss suffered by the Lessor in connection with this Agreement, caused by the Lessee or by any director, employee, officer, representative, or contractor of the Lessee.
The Lessor may apply part or all of the Deposit to compensate for any damage or loss as described above. The Lessor's right to apply the Deposit under this clause is cumulative and in addition to any other rights, remedies, or powers available to the Lessor at law or in equity.
The Deposit shall not form part of the Rental Price and may not be applied as payment for the Rental Price or any other fees.
Upon completion of the Lease and return of the Motor Vehicle to the Lessor in the condition required herein, the Deposit shall be returned to the Lessee within ________ days, less any lawful deductions for loss, damage, or unpaid amounts.
The Deposit shall be due on ________.
Art. V. OTHER COSTS
In addition to the payment obligations set forth in this Agreement, the Lessee shall pay:
________.
Art. VI. MILEAGE AND FUEL
The Lessee shall be entitled to a mileage allowance of ________ kilometers for the duration of the Lease. Any mileage in excess of this allowance shall be charged at the rate of ________ Pesos (₱________) per kilometer.
The Motor Vehicle shall be delivered to the Lessee with a full tank of fuel and shall be returned by the Lessee with a full tank of fuel. Should the Motor Vehicle not be returned with a full tank of fuel, the Lessee shall be charged for the cost of refueling plus a refueling service fee of ________ Pesos (₱________).
Art. VII. MANNER OF PAYMENT
The Lessee shall pay the Rental Price and all other amounts due by deposit or transfer to the following account:
Account number: ________
Account name: ________
Bank/E-wallet: ________
Art. VIII. DELIVERY
The Lessor shall deliver the Motor Vehicle to the Lessee at the following address:
________.
Art. IX. INSPECTION AND USE OF THE MOTOR VEHICLE
§ 9.1. The Lessee acknowledges that the Lessee has had full opportunity to inspect the Motor Vehicle and has found the same to be in good and serviceable condition and suitable for the purpose required.
§ 9.3. The Lessee shall not permit any person other than the Lessee or a duly licensed driver authorized in writing by the Lessor to operate the Motor Vehicle.
§ 9.4. The Lessee assumes the risks associated with the use, operation, storage, repair, or maintenance of the Motor Vehicle and shall be responsible for ensuring that no injury, loss, or damage to any property or person occurs in connection with the Lease.
§ 9.5. The Lessee shall promptly notify the Lessor should the Motor Vehicle become unsuitable or unsafe for use, and shall immediately discontinue its use, in which case the Lessor may replace the same if possible. In no event shall the Lessor be liable for any damage, delay, or incidental or consequential damages arising from any interruption of use of the Motor Vehicle.
§ 9.6. The Lessee shall take all reasonable precautions to avoid loss, damage, or destruction to the Motor Vehicle for the duration of the Lease.
Art. X. RESTRICTIONS
The Lessee shall not lend, sublease, sub-rent, pledge, mortgage, sell, or otherwise dispose of or encumber the Motor Vehicle, except as expressly permitted in writing by the Lessor. The Lessee shall not modify, alter, or disassemble the Motor Vehicle except with the Lessor's prior written consent.
Art. XI. SURRENDER OF THE MOTOR VEHICLE
Upon the Designated End Time, or upon termination of this Agreement for any cause, the Lessee shall surrender the Motor Vehicle in good and working condition and in the same condition as on the Start Date, ordinary wear and tear excepted, by delivering the same to the following address:
________.
The Lessee shall bear the cost and expense of the surrender of the Motor Vehicle and shall do all things reasonably required by the Lessor to enable the Lessor to take possession thereof.
Art. XII. RISK OF LOSS
The risk of loss and damage shall pass to the Lessee from the date and time the Lessee takes actual possession of the Motor Vehicle and shall remain with the Lessee until the Motor Vehicle is returned to the Lessor, unless such loss or damage is caused by the fault or negligence of the Lessor or its directors, employees, representatives, or agents. The burden of proof on the cause of loss or damage shall be on the Lessee.
The Lessee shall be responsible for any damage to or of the Motor Vehicle and agrees to pay the Lessor the full reasonable cost of any repair and/or replacement. The Lessor shall assess such cost and provide the Lessee with an invoice payable immediately upon receipt.
Art. XIII. INSURANCE
In connection with the responsibility set forth in the preceding Article, the Lessee shall maintain, at the Lessee's expense, comprehensive insurance coverage over the Motor Vehicle, including third-party liability insurance as required under Republic Act No. 4136 and the Insurance Code, for the entire duration of the Lease, with the Lessor named as an additional insured or loss payee where applicable.
Art. XIV. MAINTENANCE
The Lessee shall be responsible, at the Lessee's expense, for the maintenance and upkeep of the Motor Vehicle in good working order, including the payment for fuel, oil, and the replacement of tires as needed, and shall cause necessary repairs to be undertaken in accordance with the owner's manual or the standard preventive maintenance schedule prescribed by the manufacturer.
Art. XV. LESSOR'S ACCESS TO THE MOTOR VEHICLE
The Lessor may enter any property or premises where the Motor Vehicle may be located in order to inspect or recover the Motor Vehicle, upon reasonable prior notice to the Lessee, save in cases of emergency where no notice shall be required.
Art. XVI. OWNERSHIP AND CLASSIFICATION
The Motor Vehicle is and shall at all times remain the personal property of the Lessor notwithstanding its use by the Lessee for any purpose. Nothing herein shall be construed as a transfer of ownership, this being a contract of lease and not of sale.
Art. XVII. DISCLAIMER OF WARRANTY
The Motor Vehicle is leased on an "as is, where is" basis, and the Lessor expressly disclaims all warranties, whether express or implied, including warranties of merchantability and fitness for a particular purpose, save for the warranty against hidden defects under Articles 1561 and 1653 of the Civil Code and any subsisting manufacturer's warranty, if applicable. The Lessee acknowledges that it relies solely on its own investigation and inspection of the Motor Vehicle.
Art. XVIII. INDEMNITY AND LIMITATION OF LIABILITY
The Lessee shall indemnify and hold the Lessor free and harmless from any and all liability, damage, or injury arising from the Lessee's acts, omissions, or negligence. In no event shall the Lessor's liability exceed the total amount paid by the Lessee to the Lessor under this Agreement. The Lessor shall not be liable for any special, indirect, consequential, or exemplary damages, including lost profits, arising out of or relating to this Agreement.
Art. XIX. EVENTS OF DEFAULT
The Lessee shall be in default upon the occurrence of any of the following (each, an "Event of Default"):
Art. XX. CONSEQUENCES OF DEFAULT
Upon the occurrence of an Event of Default, the Lessor may, pursuant to Article 1191 of the Civil Code, elect either the fulfillment or the rescission of this Agreement, with damages in either case, and with payment of interest at the legal rate from the date of default.
Art. XXI. EFFECT OF TERMINATION
Upon termination of this Agreement due to an Event of Default, the Lessor may take possession of the Motor Vehicle and re-lease the same to a third party (the "New Lessee"), and may withhold part or all of the Deposit in accordance with this Agreement.
The Lessee shall remain liable for any unpaid Rental Price, including the portion thereof corresponding to the unexpired period of the Lease following termination (the "Remaining Lease Period"), together with all costs and expenses relating to the taking of possession, re-leasing of the Motor Vehicle, and any costs associated with the Event of Default.
Provided, that should the Lessor re-lease the Motor Vehicle to a New Lessee, the Lessee's liability for the Rental Price for the Remaining Lease Period shall be reduced by an amount equal to the rentals actually recovered by the Lessor from such New Lessee for the same period.
Art. XXII. FORCE MAJEURE
Neither Party shall be liable to the other for failure to perform any obligation hereunder, except the obligation to pay sums already due, by reason of fortuitous events or force majeure under Article 1174 of the Civil Code, including acts of God, acts of civil or military authorities, riots, embargoes, and natural disasters, which could not have been foreseen or which, though foreseen, were inevitable.
Art. XXIII. ASSIGNMENT
This Agreement, and the rights granted hereunder, may not be assigned, sold, subleased, or otherwise transferred, in whole or in part, by either Party without the prior written consent of the other.
Art. XXIV. SUPPORTING DOCUMENTS AND ADDITIONAL ACTS
The Parties agree to execute such other documents and perform such further acts as may be reasonable and necessary for the proper implementation of this Agreement.
Art. XXV. DATA PRIVACY
The Parties shall process and protect any personal information collected, used, or disclosed in connection with this Agreement strictly in accordance with Republic Act No. 10173 (Data Privacy Act of 2012), its Implementing Rules and Regulations, and the issuances of the National Privacy Commission. Each Party consents to the processing of such personal information solely for the legitimate purposes of this Agreement.
Art. XXVI. APPLICABLE LAW, VENUE, AND DISPUTE RESOLUTION
This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines. The Parties shall endeavor to settle any dispute arising out of or in connection with this Agreement amicably; failing which, any action shall be brought exclusively before the competent courts of ________, to the exclusion of all other venues.
Art. XXVII. WAIVER
The failure of either Party to insist upon the strict performance of any term of this Agreement, or to exercise any right herein, shall not be construed as a waiver thereof. No waiver shall be valid unless expressed in writing and signed by the waiving Party, and no waiver of any term shall constitute a waiver of any other term or of the same term on a future occasion.
Art. XXVIII. COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Where the dates of signing differ, this Agreement shall take effect on the date last signed by either Party.
Art. XXIX. SEVERABILITY
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity of the remaining provisions, which shall continue in full force and effect as if the invalid provision had not been included.
Art. XXX. CUMULATIVE RIGHTS
The rights of the Parties under this Agreement and under the law are cumulative and shall not be construed as exclusive unless otherwise required by law.
Art. XXXI. HEADINGS
The headings used in this Agreement are for convenience only and shall not affect its interpretation.
Art. XXXII. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors, and permitted assigns.
Art. XXXIII. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, and agreements, whether oral or written, relating to its subject matter.
Art. XXXIV. AMENDMENTS AND MODIFICATIONS
This Agreement may be amended or modified only by a written instrument duly signed by both Parties.
IN WITNESS WHEREOF, the Parties have hereunto affixed their signatures on the date and at the place first above written.
________
Lessor
________
Lessee
Signed in the presence of:
________ ________
ACKNOWLEDGEMENT
REPUBLIC OF THE PHILIPPINES )
PROVINCE OF ________ )
CITY OR MUNICIPALITY OF ________ ) S.S.
BEFORE ME, a Notary Public for and in the City or Municipality of ________, this ________ day of ________, 20________, personally appeared the following persons:
1. ________, with competent proof of identification: ________ with number ________, which expires on ________; and
2. ________, with competent proof of identification: ________ with number ________, which expires on ________;
known to me and to me known to be the same persons who executed the foregoing Motor Vehicle Lease Agreement, consisting of ________ pages, including this page on which the Acknowledgement is written, and who acknowledged to me that the same is their free and voluntary act and deed.
WITNESS MY HAND AND SEAL on the date and at the place first above written.
________
Notary Public
Doc. No. ________;
Page No. ________;
Book No. ________;
Series of ________.
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