Vehicle Use Agreement Between Two Parties for Philippines

Vehicle Use Agreement Between Two Parties Template for Philippines

This document is a comprehensive Vehicle Use Agreement governed by Philippine law, designed to establish the terms and conditions under which one party grants another party the right to use a specific vehicle. It incorporates relevant provisions from the Philippine Civil Code, Land Transportation and Traffic Code, and related regulations. The agreement covers essential aspects including vehicle identification, usage terms, maintenance responsibilities, insurance requirements, liability allocation, and termination conditions, while ensuring compliance with local transportation and safety regulations.

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What is a Vehicle Use Agreement Between Two Parties?

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.

What sections should be included in a Vehicle Use Agreement Between Two Parties?

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

What sections are optional to include in a Vehicle Use Agreement Between Two Parties?

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

What schedules should be included in a Vehicle Use Agreement Between Two Parties?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Use Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Transportation

Logistics

Corporate Services

Fleet Management

Automotive

Insurance

Real Estate

Construction

Retail

Manufacturing

Agriculture

Mining

Tourism

Healthcare

Education

Relevant Teams

Legal

Operations

Administration

Fleet Management

Facilities

Risk Management

Compliance

Procurement

Corporate Services

Finance

Insurance

Property Management

Contract Management

Business Operations

Health and Safety

Relevant Roles

Fleet Manager

Operations Director

Legal Counsel

Risk Manager

Compliance Officer

Administrative Manager

Facilities Manager

Transportation Coordinator

Logistics Manager

Corporate Services Manager

Health and Safety Officer

Procurement Manager

Contract Administrator

Business Operations Manager

Executive Assistant

Office Manager

Finance Manager

Insurance Coordinator

Property Manager

Vehicle Administrator

Industries
Civil Code of the Philippines (Republic Act No. 386): Provides the fundamental rules on contracts, obligations, and property rights. Particularly relevant are Book IV on Obligations and Contracts, which governs the formation, validity, and enforcement of contracts between parties.
Land Transportation and Traffic Code (Republic Act No. 4136): Establishes the rules and regulations for motor vehicle operation, registration requirements, and traffic rules. Essential for defining proper vehicle use and compliance requirements in the agreement.
Insurance Code of the Philippines (Presidential Decree No. 612, as amended): Governs insurance requirements for vehicles. Relevant for specifying insurance obligations and coverage requirements in the vehicle use agreement.
Consumer Act of the Philippines (Republic Act No. 7394): Protects consumer rights and interests. Applicable if one party is a consumer, ensuring fair terms and conditions in the agreement.
National Internal Revenue Code: Covers tax implications of vehicle use agreements, particularly relevant if the agreement involves commercial use or rental payments.
Clean Air Act (Republic Act No. 8749): Sets standards for vehicle emissions and environmental compliance. Relevant for including provisions about maintaining the vehicle in an environmentally compliant state.
Anti-Graft and Corrupt Practices Act (Republic Act No. 3019): Relevant if one party is a government entity or official, ensuring the agreement complies with anti-corruption laws.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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