The Car Rental Agreement Between Friends is designed for situations where individuals in Canada wish to formalize a temporary vehicle lending arrangement with a friend or family member. This document becomes particularly important when lending a vehicle for an extended period or when specific terms need to be clearly documented. It ensures both parties understand their rights and responsibilities while complying with provincial regulations and insurance requirements. The agreement template is structured to be more informal than commercial rental agreements while still maintaining legal validity and protecting both parties' interests. It's particularly useful in situations where friends want to maintain their relationship while having clear documentation of the arrangement terms, helping prevent misunderstandings and providing clarity on insurance coverage, maintenance responsibilities, and usage terms.
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1. Parties: Identification of both parties with full legal names and addresses
2. Background: Brief context explaining the friendly nature of the arrangement and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Rental Period', 'Rental Fee', etc.
4. Vehicle Details: Specific information about the vehicle including make, model, year, VIN, license plate, and current condition
5. Rental Period: Start and end dates of the rental period
6. Rental Fee: Amount of any rental fee or cost-sharing arrangement, including payment terms
7. Insurance and Liability: Details of insurance coverage, who is responsible for insurance, and liability arrangements
8. Driver Requirements: Requirements for who can drive the vehicle, including license requirements
9. Vehicle Use Guidelines: Permitted uses of the vehicle and any restrictions
10. Maintenance and Fuel: Responsibilities for vehicle maintenance and fuel during the rental period
11. Return Conditions: Conditions the vehicle must be returned in and return logistics
12. Termination: How either party can end the agreement early
13. Governing Law: Specification that the agreement is governed by relevant Canadian provincial law
1. Security Deposit: Optional section for cases where a security deposit is required, including amount and return conditions
2. International Travel: Additional terms if the vehicle may be taken across international borders
3. Additional Drivers: Terms for allowing additional drivers beyond the main renter
4. Maintenance Cost Sharing: Detailed arrangement for sharing any maintenance costs that arise during rental
5. Emergency Contact Protocol: Procedure for emergency situations and key contacts
6. Modification of Vehicle: Terms regarding any permitted or prohibited modifications to the vehicle
7. Pet Transportation: Special conditions for allowing pets in the vehicle
8. Smoking Policy: Specific terms regarding smoking in the vehicle if needed
1. Schedule A - Vehicle Condition Report: Detailed documentation of vehicle condition at time of handover, including photos
2. Schedule B - Insurance Documentation: Copies of relevant insurance policies and coverage details
3. Schedule C - Driver's License Information: Copies of driver's licenses for approved drivers
4. Schedule D - Maintenance History: Recent maintenance records and scheduled maintenance during rental period
5. Appendix 1 - Vehicle Photos: Dated photographs of vehicle exterior and interior at time of rental
6. Appendix 2 - Fuel Receipt: Initial fuel level receipt and final fuel level requirements
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