The Car Buying Contract is an essential legal document used in the Philippines for documenting the sale and purchase of motor vehicles. It serves as a binding agreement between the seller and buyer, ensuring compliance with Philippine laws including the Consumer Act (RA 7394), Civil Code, and Land Transportation Office regulations. This document is crucial for both private sales and commercial transactions through dealerships, protecting the interests of all parties involved. The contract includes mandatory provisions for vehicle identification, price, payment terms, and transfer of ownership, while allowing for optional elements such as financing arrangements, warranties, and insurance requirements. It's designed to prevent future disputes by clearly documenting the transaction terms and ensuring all necessary legal requirements for vehicle transfer in the Philippines are met.
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1. Parties: Identification of the seller and buyer with complete details including name, address, and government ID numbers
2. Background: Brief context of the transaction and confirmation that the seller owns the vehicle and has the right to sell it
3. Definitions: Key terms used throughout the contract including 'Vehicle', 'Purchase Price', 'Closing Date', etc.
4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, engine number, chassis number, and mileage
5. Purchase Price and Payment Terms: Total purchase price, payment schedule, method of payment, and any deposits required
6. Transfer of Ownership: Terms and process for transferring vehicle ownership, including documentation requirements
7. Seller's Representations and Warranties: Seller's guarantees about the vehicle's condition, ownership, and compliance with laws
8. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition
9. Delivery and Registration: Terms for vehicle delivery and completion of registration transfer
10. Governing Law and Jurisdiction: Specification that Philippine law governs and designation of jurisdiction for disputes
11. Execution: Signature blocks and execution requirements
1. Financing Terms: Include when the purchase involves bank financing or installment payments
2. Insurance Requirements: Include when specific insurance requirements are part of the sale conditions
3. Trade-In Provisions: Include when the buyer is trading in another vehicle as part of the purchase
4. Warranty Terms: Include for new vehicles or when specific warranties are being provided
5. As-Is Condition: Include for used vehicles sold without warranties
6. Dealer Services: Include when the sale is through a dealer offering additional services
7. Co-Maker Provisions: Include when there is a guarantor or co-maker for financed purchases
1. Vehicle Inspection Report: Detailed report of vehicle condition and any existing damage or defects
2. Payment Schedule: Detailed breakdown of payment terms if involving installments
3. Vehicle Documents: List of all documents being transferred with the vehicle
4. Warranty Certificate: Details of warranty coverage and terms if applicable
5. LTO Clearance: Copy of LTO verification showing the vehicle is free from encumbrances
6. Deed of Sale: Standard deed of sale format required by LTO
7. Photos of Vehicle: Dated photographs showing condition of vehicle at time of sale
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