Motor Vehicle Lease Agreement

MOTOR VEHICLE LEASE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Motor Vehicle Lease Agreement (the "Agreement") is made and entered into this ________ day of _____________________, 20______ at City/Municipality of ___________________________, Province of ___________________________, by and between:

________, Filipino, of legal age, and with address at ________, hereinafter referred to as the "Lessor".

- and -

________, Filipino, of legal age, and with address at ________, hereinafter referred to as the "Lessee".

The Lessor and the Lessee will be referred to collectively as the "Parties".

WITNESSETH:

WHEREAS, The Lessor desires to offer for rent a certain Motor Vehicle it owns, as defined below;

WHEREAS, The Lessee desires to rent such Motor Vehicle from the Lessor.

NOW THEREFORE, for and in consideration of the promises and covenants contained herein, the Parties hereby agree as follows:

I. LEASED MOTOR VEHICLE

The Lessor hereby leases to the Lessee and the Lessee hereby leases from the Lessor the following Motor Vehicle (the "Motor Vehicle") described below:

Manufacturer or Brand: ________
Series: ________
Type of Body: Passenger Car (Light)
Year Model: ________
Motor No.: ________
Serial or Chassis No.: ________
Plate No.: ________

The transaction between the Lessor and the Lessee, including any services relating to the lease of the Motor Vehicle, will hereinafter be referred to as the "Lease".

II. DURATION OF THE LEASE

The Lease will begin on ________ (the "Start Date") and end on ________ (the "End Date").

III. PRICE

The Lessee shall pay the Lessor a flat fee of ________ (₱________) for the lease of the Motor Vehicle (the "Rental Price").

The Lessee shall pay a delivery fee of ________ (₱________) (the "Delivery Fee").

If the Motor Vehicle is not returned to the Lessor by the Designated End Time on the End Date, the Lessee shall pay a late fee of ________ (₱________).

The Rental Price and the Delivery Fee shall be paid on ________.

IV. DEPOSIT

The Lessee shall pay a deposit of ________ (₱________) (the "Deposit") to guarantee the Lessee's full performance of the terms and conditions of this Agreement and as security for any damage to or loss of the Motor Vehicle, or loss suffered by the Lessor in connection with this Agreement, caused by Lessee or by any director, employee, officer, representative, or contractor of the Lessee.

The Lessor may use the part or all of the Deposit to compensate for any damage or loss as described above. The Lessor's right to use the Deposit in accordance with this clause is cumulative and applies in addition to any other rights, remedies, or powers which the Lessor may otherwise have. Nothing in this clause will in any way reduce, extinguish, postpone, restrict, or otherwise limit any other right, remedy, or power which may be available to the Lessor.

In the event that the Lease is cancelled by the Lessee, the Deposit may be retained by the Lessor at the Lessor's sole and exclusive discretion.

The Deposit shall not be part of the Rental Price and may not be used or applied as payment for the Rental Price or any other fees.

Once the Lease is completed and the Motor Vehicle is returned to the Lessor, the Deposit shall be returned to the Lessee, minus any deductions for any loss or damages.

The Deposit will be due on: ________.

V. OTHER COSTS

In addition to the payment obligations set forth in this Agreement, the Lessee must pay:

________;

VI. 58255

552 822258 25882 525 588 22525 2228, 82 522, 552 258858882 22 522 5228885882 25528.

528288 225258882 525225 5222 82 252 2552828, 522 5228885882 25528, 8585 58 88255285822 255 25 585, 22 252 22582 525 22525 2228, 82 522, 85588 82 2585 82 252 228822.

VII. PAYMENT

The Lessee shall pay the Rental Price and all other amounts by making a deposit in the following account:

Account number: ________

Account name: ________

Bank/E-wallet: ________

VIII. DELIVERY

The Lessor shall deliver the Motor Vehicle to the Lessee at the following address:

________;

IX. INSPECTION AND USE OF THE MOTOR VEHICLE

The Lessee acknowledges that the Lessee has had the opportunity to fully inspect the Motor Vehicle and has found the same to be suitable for the purpose required.

The Lessee shall use the Motor Vehicle for lawful purposes only and in a manner that complies with and conforms with this Agreement and any laws, ordinances, rules and regulations relating to the possession, use or maintenance of the Motor Vehicle. The Lessee shall, at all times, use the Motor Vehicle in a manner that does not unnecessarily endanger any person or property.

The Lessee shall not permit any person other than an employee of the Lessee to use or operate the Motor Vehicle unless the operation of the Motor Vehicle is part of the services of the Lessor in which case only the Lessor or its employees, agents, or representatives shall operate the Motor Vehicle.

The Lessee understands and accepts the risks associated with the use, operation, storage, repair, or maintenance of the Motor Vehicle, including any direct or indirect risks of injury, loss, or damage to any property or person. The Lessee takes full responsibility in ensuring that no such injury, loss, or damage to any property or person occurs in connection with the Lease or in connection with the Lessee's use, operation, storage, repair, or maintenance of the Motor Vehicle.

The Lessee understands the proper use of the Motor Vehicle and the Lessee will notify the Lessor immediately in case the Motor Vehicle becomes unsuitable or unsafe for use. In such instance, the Lessee will immediately discontinue use of the Motor Vehicle and the Lessor will replace the same if possible. However, in no case shall the Lessor be responsible for any damage, delay, or incidental or consequential damages caused by any form of interruption of use of the Motor Vehicle.

The Lessee will take all precautions and all reasonable steps in order to avoid loss, damage, or destruction to the Motor Vehicle for the duration of the Lease.

X. RESTRICTIONS

The Lessee shall not lend, sublet, sub-rent, pledge, sell, or otherwise dispose of or encumber the Motor Vehicle, except as expressly permitted by the Lessor. The Lessee shall not modify or disassemble the Motor Vehicle except with the Lessor's prior consent.

XI. SURRENDER OF MOTOR VEHICLE

The Lessee shall surrender the Motor Vehicle at the End Time or at the termination of this Agreement for any reason, in good and working condition, and in the same condition as in the Start Date, save for ordinary wear and tear by delivering the same to the following address:

________;

The Lessee shall bear the cost and expense of the surrender of the Motor Vehicle. The Lessee will do all things necessary or reasonably required by the Lessor to enable the Lessor to take possession of the Motor Vehicle.

XII. RISK OF LOSS

Risk of loss and damage shall be entirely with the Lessee at the date and time when the Lessee takes actual possession of the Motor Vehicle and remains with the Lessee until the Motor Vehicle is returned to the Lessor unless the loss and damage are caused by the Lessor or its directors, employees, representatives, or agents. The burden of proof on the cause of the loss or damage is on the Lessee.

The Lessee is responsible for any damage of or to the Motor Vehicle and hereby agrees to pay the Lessor the full cost of any repair and/or replacement. The Lessor will assess the cost, at the Lessor's sole and exclusive discretion, and will provide the Lessee with an invoice to be paid immediately.

XIII. INSURANCE

The Lessee in connection with the responsibility mentioned in the preceding article, shall provide for the insurance coverage of the Motor Vehicle for the duration of this Lease.

XIV. MAINTENANCE

The Lessee in its use of the Motor Vehicle is responsible for the fees for maintenance of the same. This obligation includes the payment for gas, oil, and replacement of tires of the Motor Vehicle as needed. The Lessee will, at the Lessee's expense, maintain the upkeep and the good working order of the Motor Vehicle and see to it that the repairs are done when the need arises. The maintenance repairs shall be done according to the owner's manual or the standard preventive maintenance schedule as required or suggested by the manufacturer.

XV. LESSOR ACCESS TO MOTOR VEHICLE

The Lessor may enter any property or premises where the Motor Vehicle may be in use in order to inspect or remove the Motor Vehicle by providing reasonable notice to the Lessee except that no notice is required in the case of an emergency.

XVI. OWNERSHIP AND CLASSIFICATION

The Motor Vehicle is and shall at all times remain the personal property of the Lessor notwithstanding its use by the Lessee on any other purpose than that stated elsewhere in this agreement.

XVII. DISCLAIMER OF WARRANTY

The Motor Vehicle is being rented on an "as is" basis and the Lessor hereby expressly disclaims any and all warranties of quality, whether express or implied, including but not limited to the warranties of merchantability and fitness for a particular purpose. The Lessee acknowledges that it is relying solely on its own investigations, inspections, and/or examinations and has not been induced by the Lessor or any of the Lessor's agents or representatives to make any statements as to the quality or condition of the Motor Vehicle. The exception to the preceding provisions is the warranty granted by the standard manufacturer on the Motor Vehicle if applicable.

XVIII. INDEMNITY AND LIMITATION OF LIABILITY

The Lessee agrees to hold the Lessor harmless from any damage or injuries resulting from the Lessee's acts or negligence. In no event will the Lessor's liability exceed the total amount paid by the Lessee to the Lessor for the Lease for any cause of action or future claim. The Lessor shall not be liable for any special, indirect, consequential, or punitive damages, including but not limited to lost profits and/or business, arising out of or relating to this Agreement in any way.

XIX. EVENT OF DEFAULT

The Lessee will be in default for the following ("Event of Default"):

1. Failure to make timely payments for any amount due under this Agreement;

2. Failure to perform one or more of the Lessee's obligations under this Agreement and said failure cannot be rectified;

3. Failure to rectify a breach or violation of the Lessee's obligations under this Agreement within Seven (7) Days after receipt of notice from the Lessor requiring that said breach or violation be rectified;

4. If a suit for insolvency, whether voluntary or involuntary, is filed against the Lessee;

5. If the Lessee is a business, and if the Lessee's business ceases or closes or fails to operate in the normal course of business for any reason.

XX. CONSEQUENCE OF DEFAULT

In case of an Event of Default, the Lessor may choose between the continuance or rescission of the Agreement. In either case, the Lessee shall be liable for damages.

XXI. EFFECT OF TERMINATION

Upon the termination of this Agreement due to an Event of Default, the Lessor may take possession of the Motor Vehicle and rent the same to a third party (the "New Lessee"). The Lessor may likewise withhold some or all of the Deposit in accordance with this Agreement.

The Lessee shall be liable to pay any unpaid Rental Price, which may include but is not limited to the portion of the Rental Price for the remainder of the Lease Period (after the date of termination) (the "Remaining Lease Period"), any costs and expenses relating to taking possession and re-renting the Motor Vehicle and any costs or expenses associated with the Event of Default.

Provided that, if the Lessor is able to re-rent the Motor Vehicle to the New Lessee, the liability of the Lessee for the Rental Price for the Remaining Lease Period may be offset by an amount equal to the amount recovered by the Lessor from the Lessee.

XXII. FORCE MAJEURE

Neither party shall be liable to the other for failure to perform due to causes beyond its reasonable control including, but not limited to, acts of God, acts of civil authorities, acts of military authorities, riots, embargoes, acts of nature, and natural disasters, and other acts which may be due to unforeseen events or though foreseen could not be reasonably avoided.

XXIII. ASSIGNMENT

This Agreement, or the rights granted hereunder, may not be assigned, sold, leased, or otherwise transferred in whole or in part by either Party.

XXIV. SUPPORTING DOCUMENTS AND ADDITIONAL ACTS

The Parties agree to execute such other documents as are reasonable and necessary for the proper implementation of this Agreement.

XXV. APPLICABLE LAW

This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines.

XXVI. WAIVER

Failure of either party to insist, in one or more instances, the strict performance of any of the terms of this Agreement, or to exercise any portion herein contained, shall thereafter not be construed as abandonment or cancellation or waiver of such term. No waiver shall be deemed to have been made unless expressed in writing and signed by Lessor or Lessee. No waiver of any term or provision of this Agreement shall constitute a waiver of any other term or provision or of the same provision on a future date.

XXVII. COUNTERPARTS

This Agreement may be executed in counterparts, all of which constitute a single agreement. If the dates set forth at the signatures of this document are different, the Agreement shall be considered effective as of the date that both the Lessor and the Lessee signed the Agreement.

XXVIII. SEVERABILITY

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the Lessor and the Lessee agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed subsequent to the expungement of the invalid provision.

XXIX. CUMULATIVE RIGHTS

The rights of the Parties under this Agreement and the law are cumulative and shall not be construed as exclusive unless otherwise required by law.

XXX. HEADINGS

Headings are for convenience only and do not affect the interpretation of this Agreement.

XXXI. SUCCESSORS AND ASSIGNS

This Contract shall be binding on the successors and assigns of both Parties.

XXXII. ENTIRETY OF AGREEMENT

This Agreement represents the entire agreement between the Lessor and the Lessee and supersedes all prior negotiations, representations, and agreements, either oral or written.

XXXIII. AMENDMENTS AND MODIFICATIONS

This Agreement may be amended only by a written instrument signed and agreed upon by both Parties.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signatures on the date and place first stated above.

________
Lessor

________
Lessee

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES )
PROVINCE OF ________________________ )
CITY OR MUNICIPALITY OF ________________________ )S.S.

BEFORE ME, a Notary Public, for and in the CITY OR MUNICIPALITY OF ________________________, ________________________, this _______ day of ________________________, 20______, personally appeared the following persons:

1. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________; and

2. ________, with the following competent proof of identification: Driver's License with number ________ which expires on ________

known to me and to me known to be the same persons who executed the foregoing Motor Vehicle Lease Agreement constituting of _________ pages, including this page where the Acknowledgement is written, and they acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL on the day and place first written above.

Doc No. ________;
Page No. ________;
Book No. ________;
Series of ________.