The Contract to Sell Motorcycle is a crucial legal document used in the Philippines for motorcycle sale transactions, whether between private parties or through dealerships. This document type is essential for compliance with Philippine regulations, particularly the Motorcycle Crime Prevention Act (RA 11235) and the Consumer Act. It's used when a seller agrees to transfer ownership of a motorcycle to a buyer upon full payment of the purchase price through installments or deferred payment arrangements. The contract includes crucial details such as vehicle specifications, payment terms, warranties, and registration requirements. It provides legal protection for both parties and ensures proper documentation for vehicle registration and ownership transfer with the Land Transportation Office (LTO). The document can accommodate various scenarios including financing arrangements, trade-ins, and insurance requirements, making it suitable for both simple and complex motorcycle sale transactions.
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1. Parties: Identification of the seller and buyer with complete details including names, addresses, and government IDs as required by Philippine regulations
2. Background: Context of the sale and brief description of the transaction
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter: Detailed description of the motorcycle including make, model, year, engine number, chassis number, and color
5. Purchase Price: Total purchase price and breakdown of costs including taxes and registration fees
6. Payment Terms: Schedule of payments, installment amounts, and payment methods
7. Delivery and Transfer: Terms regarding the delivery of the motorcycle and transfer of ownership
8. Warranties and Representations: Seller's warranties about the motorcycle's condition and legal status
9. Registration and Documentation: Requirements for motorcycle registration and necessary documentation as per RA 11235
10. Default and Remedies: Consequences of default and available remedies for both parties
11. Governing Law: Specification that the agreement is governed by Philippine law
12. Execution: Signature blocks and notarization requirements
1. Financing Terms: Include when the purchase involves third-party financing or in-house financing by the seller
2. Trade-in Agreement: Include when there is a trade-in motorcycle involved in the transaction
3. Insurance Requirements: Include when mandatory insurance coverage is part of the agreement
4. Maintenance and Service: Include when the sale includes maintenance or service packages
5. Co-maker Provision: Include when a co-maker or guarantor is required for the purchase
1. Schedule A - Motorcycle Specifications: Detailed technical specifications of the motorcycle including photographs
2. Schedule B - Payment Schedule: Detailed breakdown of payment installments with due dates
3. Schedule C - Delivery Inspection Checklist: Checklist for inspection at the time of delivery
4. Appendix 1 - Required Documents: List of all required documents for registration and transfer
5. Appendix 2 - Warranty Terms: Detailed warranty terms and conditions if applicable
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