Transportation Lease Agreement Template for Philippines

The Transportation Lease Agreement is essential for businesses and individuals in the Philippines seeking to lease vehicles or transportation equipment without the capital investment of purchase. This document is particularly relevant in today's dynamic business environment where flexible transportation solutions are increasingly important. The agreement must comply with Philippine laws, including the Civil Code, Land Transportation and Traffic Code (RA 4136), and relevant LTFRB regulations. It typically includes comprehensive terms covering vehicle specifications, maintenance obligations, insurance requirements, and liability provisions. The Transportation Lease Agreement is commonly used in both commercial and private contexts, from individual vehicle leases to large-scale fleet management arrangements. Its structure ensures protection for both lessors and lessees while maintaining compliance with local transportation and business regulations.

1. Parties: Identification of lessor and lessee with complete legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Defined terms used throughout the agreement

4. Vehicle Description: Detailed description of the leased vehicle(s) including make, model, year, and identification numbers

5. Lease Term: Duration of the lease, commencement date, and termination provisions

6. Rental Payments: Payment amounts, schedule, method of payment, and late payment penalties

7. Security Deposit: Amount, terms, and conditions for return of security deposit

8. Use of Vehicle: Permitted uses, geographical limitations, and authorized drivers

9. Maintenance and Repairs: Responsibilities for vehicle maintenance, repair procedures, and cost allocation

10. Insurance Requirements: Required insurance coverage, responsible party for insurance, and claim procedures

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Default and Remedies: Events of default and available remedies for both parties

13. Return of Vehicle: Condition requirements and procedures for vehicle return

14. Governing Law: Specification of Philippine law as governing law and jurisdiction

15. Dispute Resolution: Process for resolving disputes including mediation or arbitration procedures

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability