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The Car Contract Agreement is a vital legal instrument used in the Philippines for documenting the sale and purchase of motor vehicles. This document is essential for both private and commercial vehicle transactions, ensuring compliance with Philippine transportation laws, consumer protection regulations, and tax requirements. It serves to protect the interests of both buyers and sellers by clearly documenting the vehicle's specifications, condition, price, and transfer terms. The agreement is particularly important given the Philippines' strict requirements for vehicle ownership transfer and registration. It can be used for new vehicle purchases from dealerships, second-hand vehicle sales between private parties, or commercial fleet transactions. The document typically includes provisions for financing arrangements, insurance requirements, and warranty terms where applicable, while ensuring compliance with the Land Transportation and Traffic Code and other relevant Philippine legislation.

1. Parties: Identifies and provides complete details of the seller and buyer, including their legal names, addresses, and contact information

2. Background: Establishes the context of the agreement and confirms the seller's ownership and right to sell the vehicle

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Vehicle Description: Detailed specification of the vehicle including make, model, year, color, engine number, chassis number, and other identifying features

5. Purchase Price: States the agreed purchase price and payment terms, including any deposits and balance payment arrangements

6. Transfer of Ownership: Specifies the conditions and process for transferring vehicle ownership, including registration requirements

7. Warranties and Representations: Details the seller's warranties regarding the vehicle's condition and legal status

8. Buyer's Obligations: Outlines the buyer's responsibilities including payment, insurance, and compliance with traffic laws

9. Seller's Obligations: Specifies the seller's duties including delivery, documentation, and disclosure requirements

10. Risk and Insurance: Determines when risk passes to the buyer and insurance requirements

11. Termination: Describes circumstances under which the agreement can be terminated and the consequences

12. Governing Law: Confirms that Philippine law governs the agreement and specifies jurisdiction for disputes

13. Execution: Formal signing section including space for witnesses and notarization as required by Philippine law