The Used Car Sale Contract is an essential legal instrument in the Philippines for documenting the transfer of ownership of second-hand vehicles. It is designed to comply with Philippine legal requirements, including the Civil Code, Consumer Act, and Land Transportation regulations. This document is crucial for both private sales and commercial transactions, providing protection for both buyers and sellers by clearly documenting the vehicle's condition, sale price, and terms of transfer. It includes mandatory disclosures required by Philippine consumer protection laws, handles tax implications, and ensures proper documentation for vehicle registration transfer. The contract is particularly important given the significant used car market in the Philippines and the need to prevent future disputes regarding vehicle condition, payment terms, or ownership transfer.
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1. Parties: Identification of the Seller and Buyer with complete details including names, addresses, and valid government IDs
2. Background: Context of the sale and brief description of the transaction
3. Definitions: Key terms used throughout the agreement
4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, engine/chassis number, plate number, and mileage
5. Purchase Price and Payment Terms: Agreed price, payment method, and schedule of payments if applicable
6. Vehicle Condition and Disclosures: Detailed description of the vehicle's current condition, known defects, accident history, and maintenance records
7. Transfer of Ownership: Process and requirements for transferring vehicle ownership, including registration and documentation
8. Representations and Warranties: Seller's representations about the vehicle's condition and legal status
9. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition
10. Closing and Delivery: Details of when and how the vehicle will be handed over
11. Governing Law: Specification that Philippine law governs the agreement
12. Execution: Signature blocks and execution requirements
1. Financing Terms: Include when the purchase involves financing or installment payments
2. Trade-in Details: Include when there is a trade-in vehicle involved in the transaction
3. Insurance Requirements: Include when specific insurance arrangements are part of the sale agreement
4. Post-Sale Services: Include when the seller is providing additional services like warranty or maintenance
5. Dispute Resolution: Include when parties want to specify mediation or arbitration procedures
6. Force Majeure: Include when parties want to address potential extraordinary circumstances affecting the transaction
1. Schedule A - Vehicle Inspection Report: Detailed technical inspection report of the vehicle's condition
2. Schedule B - Vehicle History: Documentation of previous ownership, accident history, and major repairs
3. Schedule C - Maintenance Records: Records of regular maintenance and servicing
4. Schedule D - Payment Schedule: If installment payments are involved, detailed payment schedule
5. Appendix 1 - Vehicle Registration Documents: Copies of current registration and other LTO documents
6. Appendix 2 - Photographs: Dated photographs showing the condition of the vehicle at time of sale
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