Vehicle Contracts are formal documents which are initiated between the two parties (individuals/ organizations) in order to rent the vehicle or to purchase the vehicle.

The official contract lines are drawn by mentioning the agreed payment terms for a fixed duration. Any kind of misconduct and breach can terminate the contract for which the guilty party has to pay the settlement allowance to the alleging party.

Types of the vehicle contract: rental vehicle contract, seller vehicle contract, buyer vehicle contract and others. The vehicle consists of the information of both the parties along with the vehicle details. In case of vehicle sale & purchase contract, the current owner is referred as the seller and the second party is called as the buyer, whereas in a rental contract, the owner known as the lessor and the second party known as the renter/ lessee.

Following factors plays an important role in the vehicle contract:

(a)    Contract Number and date on which the contract is specified.

(b)   Type of the vehicle contract.

(c)    The date on which the contract is starting and terminating.

(d)   Contact information of both the parties, including their names, valid address details and contact numbers.

(e)    Vehicle details along with the registration number and license number.

(f)    Terms & covenants consisting of the payment clause, renewal of the contact and termination condition.

(g)   Signature of both the parties for approving the contact terms.

(h)   Signatures of the witnesses.

The original copy remains with the current owner, whereas the seller or the renter can retains a duplicate copy.

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