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Car Payment Agreement Between Friends for United Arab Emirates

Car Payment Agreement Between Friends Template for United Arab Emirates

This document serves as a legally binding agreement between two individuals in the United Arab Emirates who have agreed to a private vehicle sale with installment payments. The agreement, governed by UAE Civil Law and Federal Traffic Laws, outlines the terms of payment, vehicle ownership transfer conditions, and the rights and obligations of both parties. It includes specific provisions for payment schedules, vehicle possession, maintenance responsibilities, and default remedies, all structured to comply with UAE legal requirements while maintaining the informal nature of a friendship-based transaction.

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Car Payment Agreement Between Friends

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What is a Car Payment Agreement Between Friends?

The Car Payment Agreement Between Friends is designed for use in the United Arab Emirates when one individual is selling a vehicle to a friend with an arrangement for payments over time. This document type bridges the gap between formal vehicle sale requirements and informal friendship-based transactions, ensuring legal compliance while maintaining relationship dynamics. It's particularly relevant in the UAE context where vehicle transactions must comply with specific federal and emirate-level regulations, including the UAE Civil Code and Federal Traffic Law. The agreement typically includes complete vehicle details, payment terms, ownership transfer conditions, and default remedies, while also addressing UAE-specific requirements such as vehicle registration transfer procedures and potential use of post-dated cheques for payments. This document type is increasingly common in the UAE's personal vehicle market, where friend-to-friend vehicle sales often involve payment arrangements based on trust but requiring legal structure.

What sections should be included in a Car Payment Agreement Between Friends?

1. Parties: Identification of both parties with full legal names, Emirates ID numbers, and contact details

2. Background: Brief context explaining the friendship relationship and the agreement to sell/purchase the vehicle with payments over time

3. Definitions: Key terms used in the agreement including 'Vehicle', 'Payment Schedule', 'Transfer Date', etc.

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, VIN, and current registration details

5. Purchase Price and Payment Terms: Total purchase price, payment schedule, payment method, and due dates

6. Transfer of Ownership: Conditions for and timing of the transfer of vehicle ownership

7. Vehicle Possession and Use: Terms regarding vehicle possession, permitted use, and maintenance responsibilities during the payment period

8. Default and Remedies: Consequences of payment default and available remedies for both parties

9. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant emirate's courts' jurisdiction

What sections are optional to include in a Car Payment Agreement Between Friends?

1. Insurance Requirements: Include when specifying which party is responsible for maintaining insurance during the payment period

2. Maintenance and Repairs: Include when there's a need to specify responsibility for vehicle maintenance during the payment period

3. Early Payment Provisions: Include when parties want to allow for early payment options or specify any related discounts

4. Vehicle Inspection: Include when there's a need to document the current condition of the vehicle

5. Death or Incapacity: Include when parties want to address what happens to the agreement in case of death or incapacity

6. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods before court proceedings

What schedules should be included in a Car Payment Agreement Between Friends?

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Schedule 2 - Vehicle Condition Report: Detailed description of vehicle condition at the time of agreement, including photographs

3. Schedule 3 - Vehicle Documents: Copies of vehicle registration, insurance certificates, and maintenance records

4. Appendix A - Post-dated Cheques List: If using post-dated cheques, list of cheque numbers, dates, and amounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
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Relevant Industries

Automotive

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Relevant Roles

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Compliance Officer

Contract Manager

Personal Finance Advisor

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Risk Management Officer

Client Relations Manager

Personal Banking Advisor

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