The Car Buyers Sellers Contract is a crucial legal document used in the Philippines for documenting and formalizing the sale and purchase of motor vehicles. This contract type is essential for both private and commercial vehicle transactions, ensuring compliance with Philippine regulations including the Civil Code, Consumer Act, and Land Transportation and Traffic Code. It should be used whenever a vehicle ownership transfer occurs, whether between private individuals, corporate entities, or through dealerships. The document comprehensively covers vehicle details, payment terms, warranties, and transfer procedures, while incorporating specific Philippine requirements for vehicle registration and ownership transfer. It serves as both a record of the transaction and a protective mechanism for all parties involved, helping prevent future disputes and ensuring legal compliance with local transportation and tax authorities.
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1. Parties: Identification of the seller and buyer with complete legal names and addresses
2. Background: Brief context of the sale and confirmation that the seller owns the vehicle
3. Definitions: Key terms used throughout the agreement
4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, engine/chassis numbers, plate number, and current mileage
5. Purchase Price and Payment Terms: Agreed price, payment method, and schedule of payments if applicable
6. Seller's Representations and Warranties: Seller's declarations about vehicle condition, ownership, and absence of liens
7. Transfer of Title and Registration: Process and responsibilities for transferring vehicle ownership and registration
8. Delivery and Acceptance: Details of vehicle handover and acceptance conditions
9. Taxes and Fees: Allocation of responsibility for transfer taxes, registration fees, and other costs
10. Risk and Insurance: Transfer of risk and insurance requirements
11. Governing Law: Confirmation that Philippine law governs the agreement
12. Execution: Signature blocks and witnessing requirements
1. Financing Terms: Include when purchase involves bank financing or installment payments
2. Trade-in Details: Include when part of the payment involves trading in another vehicle
3. Inspection Period: Include when buyer is given time to inspect and test the vehicle before final acceptance
4. After-sale Service Agreement: Include when seller provides additional maintenance or service guarantees
5. Default and Remedies: Include detailed provisions for breach when transaction value is significant
6. Arbitration Clause: Include when parties prefer alternative dispute resolution to court proceedings
1. Vehicle Inspection Report: Detailed report of vehicle condition at time of sale
2. Vehicle Documents List: Inventory of all documentation being transferred with the vehicle
3. Payment Schedule: If installment payment, detailed schedule of payment dates and amounts
4. Vehicle Photographs: Photos documenting vehicle condition at time of sale
5. Maintenance History: Record of vehicle's maintenance and repair history
6. LTO Clearance: Land Transportation Office clearance confirming no pending violations
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