Contracts

CAR LEASE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Car Lease Agreement ("Agreement") is made and entered into this [Day] of [Month, Year], at [Place of Execution], by and between:

PARTIES

1. [LESSOR’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Lessor’s Address], hereinafter referred to as the "LESSOR";

2. [LESSEE’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Lessee’s Address], hereinafter referred to as the "LESSEE".

WHEREAS, the LESSOR is the registered owner of the motor vehicle described below and agrees to lease it to the LESSEE under the terms and conditions set forth herein;

WHEREAS, the LESSEE agrees to lease the vehicle for personal/business use and comply with all obligations stated in this Agreement.

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

1. VEHICLE DESCRIPTION

The LESSOR hereby leases to the LESSEE the following motor vehicle:

Make/Brand Model Year Color

[Make] [Model] [Year] [Color]

Chassis Number Engine Number Plate Number Odometer Reading

[Chassis No.] [Engine No.] [Plate No.] [Odometer]

Certificate of Registration (CR) No. Official Receipt (OR) No. Date of Registration

[CR No.] [OR No.] [Date]

2. LEASE TERM

2.1. The lease shall commence on [Start Date] and shall end on [End Date], unless renewed or terminated earlier under this Agreement.
2.2. The LESSEE may request an extension of the lease, subject to the LESSOR’s approval and possible adjustment of rental fees.

3. RENTAL FEE AND PAYMENT TERMS

3.1. The LESSEE agrees to pay the LESSOR a rental fee of PHP [Amount in Words] ([PHP Amount in Numbers]) per [Day/Week/Month].
3.2. Payment shall be made via [Bank Transfer / Cash / Check] on or before [Due Date] each period.
3.3. A security deposit of PHP [Amount] shall be paid upon signing this Agreement and shall be refundable upon lease termination, subject to deductions for damages, unpaid fees, or violations.
3.4. Late payments shall incur a penalty of [e.g., 5% of the unpaid amount per day].

4. SECURITY DEPOSIT AND VEHICLE RETURN

4.1. The LESSEE agrees to return the vehicle in the same condition as received, subject to normal wear and tear.
4.2. If the vehicle sustains damage beyond normal wear and tear, repair costs shall be deducted from the security deposit.
4.3. If the security deposit is insufficient to cover damages, the LESSEE agrees to pay the remaining balance immediately.

5. USE OF VEHICLE

5.1. The LESSEE shall only use the vehicle for [personal/business] use within [Allowed Areas/Regions].
5.2. The LESSEE shall not use the vehicle for:

• Illegal activities or reckless driving;

• Racing, towing, or off-road driving;

• Transporting hazardous materials;

• Driving under the influence of alcohol or drugs.
  5.3. The LESSEE shall not sublease the vehicle to another party without the LESSOR’s written consent.

6. INSURANCE AND MAINTENANCE

6.1. The LESSOR shall provide basic vehicle insurance coverage, including:

• Third-Party Liability Insurance;

• Comprehensive Insurance (if applicable).
  6.2. The LESSEE shall be responsible for:

• Daily maintenance, including fuel, oil, tire pressure, and regular cleaning;

• Reporting mechanical issues to the LESSOR immediately.
  6.3. Any damage or loss due to negligence (e.g., reckless driving, improper use) shall be fully borne by the LESSEE.

7. TRAFFIC VIOLATIONS AND FINES

7.1. The LESSEE shall be responsible for all traffic violations, parking tickets, and penalties incurred during the lease period.
7.2. If the LESSOR receives a violation notice related to the LESSEE’s use of the vehicle, the LESSOR shall charge the corresponding amount to the LESSEE.

8. TERMINATION AND BREACH OF CONTRACT

8.1. Either Party may terminate this Agreement by providing [Number] days’ written notice.
8.2. The LESSOR may immediately terminate this Agreement if the LESSEE:

• Fails to make rental payments for [Number] consecutive days;

• Uses the vehicle for unauthorized purposes;

• Violates any terms of this Agreement.
  8.3. Upon termination, the LESSEE shall return the vehicle immediately to the LESSOR.

9. GOVERNING LAW AND DISPUTE RESOLUTION

9.1. This Agreement shall be governed by the laws of the Republic of the Philippines, including the Civil Code and Land Transportation Laws.
9.2. Any disputes shall first be resolved amicably. If unresolved, disputes shall be submitted to the proper courts of [City/Province], Philippines.

10. GENERAL PROVISIONS

10.1. Binding Effect – This Agreement shall be binding upon the Parties, their heirs, successors, and assigns.
10.2. Severability – If any provision is found invalid, the remaining provisions shall remain in effect.
10.3. Entire Agreement – This Agreement represents the full understanding between the Parties regarding the lease of the vehicle.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signatures this [day] of [month, year], at [place of execution].

SIGNED BY:

[LESSOR'S NAME]

Lessor

[LESSEE'S NAME]

Lessee

With Marital Consent:

[NAME OF LESSOR'S SPOUSE]

(If applicable, i.e. property is subject to the regime of community property or conjugal partnership of gains.)

SIGNED IN THE PRESENCE OF:

[Witness 1 Name]

Witness

[Witness 2 Name]

Witness

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES
[Province/City/Municipality]) S.S.

BEFORE ME, a Notary Public for and in [Location], this ___ day of [month, year], personally appeared:

1. [Lessor’s Name], identified through [Government ID Type & Number], issued on [Date]; 

2. [Name of Lessor's Spouse], identified through [Government ID Type & Number], issued on [Date]; and

3. [Lessee’s Name], identified through [Government ID Type & Number], issued on [Date],

both known to me to be the same persons who executed the foregoing Car Lease Agreement, and acknowledged that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL this ___ day of [month], [year], at [place of notarization], Philippines.

NOTARY PUBLIC

Doc. No. ____________
Page No. ____________
Book No. ____________
Series of [YEAR].