The Car Sublease Agreement is a vital legal instrument used when an existing vehicle lessee wishes to transfer their leasing rights to another party while maintaining the original lease agreement with the primary lessor. This document is particularly relevant in the Philippine context, where vehicle sharing and subleasing arrangements are becoming increasingly common in both personal and commercial settings. The agreement must comply with Philippine transportation laws, including the Land Transportation and Traffic Code (RA 4136) and relevant provisions of the Civil Code. It's commonly used in situations involving temporary vehicle transfers, business fleet management, or when the original lessee cannot fulfill the complete lease term. The document includes comprehensive details about the vehicle, financial terms, maintenance responsibilities, insurance requirements, and usage restrictions, while ensuring all parties' rights are protected under Philippine law.
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1. Parties: Identifies and provides complete details of the sublessor and sublessee, including their legal names, addresses, and contact information
2. Background: Establishes the context of the agreement, including reference to the master lease and the sublessor's right to sublease
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, VIN, license plate number, and current condition
5. Term and Termination: Specifies the duration of the sublease, start and end dates, and conditions for early termination
6. Rent and Payment Terms: Details the rental amount, payment schedule, security deposit, and acceptable payment methods
7. Use of Vehicle: Specifies permitted uses, geographical limitations, and restrictions on vehicle use
8. Maintenance and Repairs: Outlines responsibilities for vehicle maintenance, repairs, and associated costs
9. Insurance Requirements: Specifies required insurance coverage and responsibilities for maintaining insurance
10. Representations and Warranties: States the promises and guarantees made by both parties
11. Default and Remedies: Describes what constitutes default and the available remedies
12. Governing Law: Specifies that Philippine law governs the agreement and outlines jurisdiction for disputes
13. Entire Agreement: Confirms that the document represents the complete agreement between parties
1. Assignment and Subletting: Include when further subletting might be permitted under specific conditions
2. Vehicle Modifications: Include when modifications to the vehicle might be allowed under certain circumstances
3. Mileage Restrictions: Include when there are specific mileage limitations or charges
4. International Use: Include when cross-border use of the vehicle might be permitted
5. Alternative Driver Provisions: Include when additional drivers besides the sublessee will be permitted
6. Commercial Use Provisions: Include when the vehicle may be used for commercial purposes
7. Force Majeure: Include when parties want to address unforeseen circumstances affecting performance
1. Schedule A - Vehicle Condition Report: Detailed documentation of the vehicle's condition at the start of the sublease, including photographs
2. Schedule B - Master Lease Terms: Relevant excerpts from the master lease agreement that affect the sublease
3. Schedule C - Maintenance Schedule: Required maintenance schedule and procedures
4. Schedule D - Insurance Requirements: Detailed insurance requirements and minimum coverage levels
5. Schedule E - Authorized Drivers: List of authorized drivers and their license information
6. Appendix 1 - Vehicle Registration Documents: Copies of current vehicle registration and related documents
7. Appendix 2 - Payment Schedule: Detailed breakdown of payment dates and amounts
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