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The Car Payment Agreement Between Friends is designed for use in Malaysia when one individual is selling a vehicle to a friend with an arrangement for installment payments. This document becomes crucial in situations where friends wish to maintain both their friendship and legal protection while engaging in a significant financial transaction. It includes essential elements required under Malaysian law, including provisions from the Contracts Act 1950 and Road Transport Act 1987, while keeping the language and terms accessible to non-legal professionals. The agreement covers critical aspects such as payment schedules, ownership transfer timing, maintenance responsibilities, and default procedures, all while maintaining the informal spirit of a friendly arrangement. It's particularly useful when traditional financing options aren't suitable or when parties prefer to keep the transaction private while still having legal documentation.

1. Parties: Identifies the parties entering into the agreement, including full legal names, identification numbers, and addresses of both the seller/lender and buyer/borrower

2. Background: Explains the context of the agreement - that one friend is selling/financing a car to another friend and their intention to create a legally binding agreement

3. Definitions: Defines key terms used throughout the agreement such as 'Vehicle', 'Payment Period', 'Interest Rate' (if applicable), and 'Transfer Date'

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, registration number, chassis number, and current mileage

5. Purchase Price and Payment Terms: Specifies the total amount to be paid, payment schedule, payment method, and any applicable interest

6. Transfer of Ownership: Details when and how the vehicle ownership will be transferred, including responsibilities for registration and documentation

7. Maintenance and Insurance: Outlines responsibilities for vehicle maintenance and insurance requirements during the payment period

8. Default and Remedies: Specifies what constitutes a default and the agreed-upon remedies, keeping in mind the friendly nature of the agreement

9. Governing Law: States that the agreement is governed by Malaysian law and enforceable under Malaysian jurisdiction