The Vehicle Use Agreement Between Two Parties is a crucial legal document used in the Philippines when one party wishes to grant another party the right to use a vehicle under specific terms and conditions. This agreement is essential for both private and commercial arrangements, providing a clear framework for vehicle sharing, temporary use, or long-term arrangements. It ensures compliance with Philippine transportation laws, including the Land Transportation and Traffic Code (RA 4136) and relevant provisions of the Civil Code. The document is particularly important in today's sharing economy and corporate environments where vehicle use arrangements are common. It protects both parties' interests by clearly defining responsibilities, maintenance obligations, insurance requirements, and liability allocations, while ensuring adherence to local regulatory requirements.
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1. Parties: Identifies and provides full details of the vehicle owner and the authorized user, including complete names, addresses, and contact information
2. Background: Explains the context of the agreement and the parties' intention to enter into a vehicle use arrangement
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Vehicle Details: Specifies the vehicle's make, model, year, color, VIN/chassis number, plate number, and other identifying details
5. Term of Agreement: Specifies the duration of the vehicle use arrangement, including start and end dates
6. Permitted Use: Outlines the authorized purposes and conditions for vehicle use, including geographical limitations if any
7. User Responsibilities: Details the user's obligations regarding vehicle maintenance, safety, and proper operation
8. Insurance and Liability: Specifies insurance requirements and allocates liability for accidents, damage, or losses
9. Costs and Expenses: Outlines responsibility for fuel, maintenance, repairs, and other operating costs
10. Return of Vehicle: Specifies conditions for vehicle return and inspection procedures
11. Termination: Details circumstances under which either party can terminate the agreement and the consequences
12. Governing Law: Specifies that Philippine law governs the agreement and outlines jurisdiction for disputes
13. Signatures: Space for parties to execute the agreement with witnesses if required
1. Additional Drivers: Include when multiple people are authorized to drive the vehicle, listing their details and requirements
2. Commercial Use Provisions: Include when the vehicle will be used for business purposes, specifying additional requirements and restrictions
3. Maintenance Schedule: Include when specific maintenance requirements need to be documented, especially for luxury or specialized vehicles
4. Security Deposit: Include when a deposit is required, specifying amount, terms, and conditions for return
5. Mileage Restrictions: Include when there are specific limitations on distance traveled
6. Modification Restrictions: Include when there are concerns about vehicle modifications or installations
7. Cross-Border Use: Include when vehicle might be used outside the Philippines
8. Force Majeure: Include when parties want to address extraordinary circumstances affecting vehicle use
9. Assignment Rights: Include when transfer of rights needs to be addressed, especially for long-term agreements
1. Schedule A - Vehicle Condition Report: Detailed documentation of vehicle condition at commencement, including photographs and noted damage
2. Schedule B - Authorized Drivers List: List of approved drivers with their license details and driving history
3. Schedule C - Maintenance Records: Log of vehicle maintenance history and scheduled maintenance requirements
4. Schedule D - Insurance Documentation: Copies of insurance policies and coverage details
5. Schedule E - Fee Schedule: Breakdown of any fees, deposits, or charges applicable to the agreement
6. Appendix 1 - Vehicle Registration Documents: Copies of vehicle registration and relevant permits
7. Appendix 2 - Driver's Responsibilities Checklist: Detailed list of driver obligations and best practices
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