Terms
Vehicle Lease Agreement
- Recitals
Whereas, the Lessor is the registered owner of the Vehicle,
Whereas the Lessor is desirous of leasing the Vehicle to the Lessee on such terms as are set out in this Vehicle Lease Agreement (the Agreement”) and the Lessee is desirous of leasing the Vehicle from the Lessor on said terms,
Whereas this Agreement is a lease-only and Lessee will have no right, title, or interest in or to the Vehicle except for the use of the Vehicle as described in this Agreement,
Whereas this Agreement shall be treated as a true lease for federal and applicable state income tax purposes with Lessor having all benefits of ownership of the Vehicle,
- Security deposit.
The Lessee shall pay a security deposit of US$ 300.00 at the time that this Lease is signed. This deposit will be returned to the Lessee at the termination of the Lease, subject to the option of the Lessor to apply it against Lease charges and damages. Any amounts refundable to the Lessee shall be paid at the time this Lease is terminated.
- Car Insurance.
In the event of theft or damage to the Vehicle that results in a total loss, this lease provides that Lessee is liable for the damaged cause to the vehicle. The deposit amount be put on hold pending the final due amount.
- Excessive wear and use.
Lessee may be charged for excessive wear based on Lessor’s specifications and generally accepted standards for normal use. Excessive wear and tear include, but is not limited to damaged glass, damaged body panels, lights, fenders, paint, dysfunctional accessories, extremely worn tire tread, any damage to the interior, and any mechanical damage that interferes with the safe and lawful operation of the vehicle.
- Assignment.
The Lessee shall not assign, transfer, or sublet any of its obligations, rights, or interest under this Agreement to any third party, whether an associated entity or not, whether in whole or in part without prior written consent of the Lessor.
- Vehicle return
At the end of the lease the vehicle must be returned to the care of Lessor.
- Severability.
If a court holds any provision of this Agreement to be illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties will amend this Agreement to give effect to the stricken clause to the maximum extent possible.
- Risk of Loss.
Lessee assumes and agrees to bear the entire risk of loss of theft of, damage to or destruction of the Vehicle from any cause whatsoever. In the event of such an occurrence to a vehicle, Lessee shall give Lessor prompt notice of the occurrence.
- 8. Acceptable drivers, limitations, and modifications to the vehicle.
The Vehicle is not to be operated by drivers without an appropriate license or those restricted under the insurance policy.
- Early termination.
There is no cancellation period before the end of the term of this vehicle lease. This lease may only be terminated with the agreement of the Lessor or upon proven and valid legal cause.
- Inspection.
Lessor and Lessee acknowledge that the Vehicle has been inspected and the Lessee accepts the Vehicle as being in good condition, not including manufacturer’s defects.
- Entire agreement and modification.
This Lease constitutes the entire agreement between the parties. No modification or amendment of this Lease shall be effective unless in writing and signed by both parties.
- indemnification.
Lessee agrees to indemnify and hold harmless the Lessor from any loss; shall keep the Vehicle free from encumbrances, fines, liens, claims, and expenses resulting from the use of the vehicle.
- Governing law.
This Lease shall be construed in accordance with the laws of Aruba.
- Signatories.
This Agreement shall be executed by ___________________ (Lessee) and by Faith Car Rental. This Agreement shall be effective as of the date mentioned above: