Car rental contract template

Car Rental Contract

Contract no.: Contract number

Date: Contract date

Place: City of signing

Parties

First Party (Lessor): First party name, CR / ID no. First party CR, national address: First party address, e-mail: First party e-mail, mobile: First party mobile, represented by First party signatory as First party signatory title.

Second Party (Hirer): Second party name, national ID / iqama no. Second party ID, national address: Second party address, e-mail: Second party e-mail, mobile: Second party mobile.

Article 1: Recitals and definitions

1.1 Whereas the Lessor is licensed by the Transport General Authority to rent cars, and the Second Party wishes to rent the car below, the parties agree as follows.

1.2 The recitals and schedules form an integral part of this Contract and are read with it. In a conflict, this Contract prevails, then the schedules in numerical order.

1.3 "Business Day" means any day other than Friday, Saturday and an official holiday in the Kingdom of Saudi Arabia. "Laws" means the laws and regulations in force in the Kingdom.

1.4 Each party confirms that it has legal capacity to contract, that its signatory is authorised, and that entering into this Contract breaches no other obligation binding on it.

Article 2: Item on hire

| Item | Details |

| --- | --- |

| Car and model | Car type and model |

| Plate | Plate no. |

| Odometer and fuel | Odometer and fuel |

| Daily km limit | Km limit (extra: Extra km price) |

2.1 The Second Party's licence: Driving licence no. and expiry. Additional driver: Additional driver. The Contract is documented electronically on the approved platform where required.

Article 3: Term and price

3.1 Term: Contract term, from Start date to End date. Extra time is charged at the same rate or by written extension.

| Item | Amount | When due |

| --- | --- | --- |

| Daily or monthly hire | Hire rate | Hire payment date |

| Total hire | Total contract value | By term |

| Refundable security | Deposit | On delivery |

3.2 The security is returned within Deposit return time days of a sound return. An electronic tax invoice is issued. No interest applies to late payment; the Lessor may instead stop the service and recover the item after notice, and claim actual collection costs.

Article 4: Delivery and inspection

4.1 Delivery is at Delivery place by a report stating condition, accessories and readings; the Second Party inspects and accepts the item. If a fault not caused by it appears within Inspection period days, the Lessor repairs or replaces the item or reduces the price.

4.2 Return is by the same kind of report at Return place; transport is on: Who pays for transport. Normal wear is excluded.

Article 5: Duties of the parties

5.1 The Second Party shall:

• use the item for the agreed purpose, instructions and limits, not sublet it or move it out of the area without approval.

• report any fault or accident at once, repair only with approval, and pay the actual repair cost of damage caused by its fault or neglect.

• not drive without a valid licence or under a prohibited influence, let only authorised people drive, and not leave the Kingdom or enter restricted areas without authority.

• bear proven traffic fines during the rental, call Najm or traffic police at once on an accident, and pay the agreed excess: Excess amount.

• return the car with the same fuel level, clean, and with no smoking.

5.2 The Lessor shall:

• deliver a fit, conforming, licensed item, insured as the Laws require, and bear faults caused by wear or an inherent defect.

• provide comprehensive / third-party insurance, periodic inspection, roadside assistance: Assistance service, and a replacement for a fault not caused by the Second Party.

Article 6: Loss and liability

6.1 The item is held on trust by the Second Party, which answers for loss or damage only on misuse, neglect or breach of the terms. Anything paid by insurance is deducted from the claim.

6.2 Neither party's liability exceeds the item's market value or the total hire, whichever is higher, except for fraud or gross error.

6.3 This does not affect third-party rights or statutory duties; accidents are dealt with by reports from the competent authorities.

Article 7: Termination

7.1 Either party may terminate for a material breach not cured within 7 days of notice.

7.2 When the Contract ends the item is returned and dues settled on a statement within 7 days. The item is not taken back by force but by agreement or through the competent authority.

Article 8: Representations and warranties

8.1 The Lessor and the Hirer each confirm the following at signing, and shall tell the other at once if any of it changes:

• the details and documents it has provided are true and complete on everything affecting the other's decision, and it has hidden nothing it knows to be material.

• no claim, seizure, disposal ban, bankruptcy or legal bar prevents performance of this Contract.

• the source of funds and purpose of contracting are lawful, and this Contract is no cover for any prohibited dealing.

• it holds the licences, approvals and legal capacity needed to sign and perform this Contract, and will keep them valid throughout.

8.2 An untrue material statement is a breach of this Contract, subject to its terms and the Civil Transactions Law; deliberately misleading information is deceit that allows annulment and compensation to be sought.

Article 9: Breach and its effects

9.1 A breach notice is in writing, states the obligation breached, what is needed to cure it and a reasonable time of at least 15 days, unless this Contract sets another period. No notice is needed if cure is impossible or the party at fault has said it will not perform.

9.2 Each party may withhold its corresponding obligation that has fallen due if the other has not performed its own, unless that would run against good faith or the failure is minor, under the Civil Transactions Law.

9.3 The injured party shall make reasonable efforts to limit its loss and is not compensated for what it could have avoided. Compensation follows proved loss. Nothing is charged as compensation or increase merely for lateness in paying a sum of money, and the actual costs awarded by the competent authority may be claimed.

9.4 On termination the parties are restored as far as possible, each answering for what it actually benefited from. This Contract does not affect statutory limitation periods or the terms that survive its end by their nature.

Article 10: Documents, correspondence and proof

10.1 Each party keeps a copy of this Contract, its schedules, payment receipts and handover reports for at least 5 years after it ends, or any longer statutory period.

10.2 Correspondence through the e-mail or mobile at the head of this Contract, and approved government platforms, is proof where it can be attributed to its sender, under the Electronic Transactions Law and the Evidence Law. Nothing said orally changes this Contract.

10.3 The party receiving money gives a receipt for each sum, stating what it covers. No payment is a final release unless that is stated in writing.

Article 11: Confidentiality

11.1 Each party shall keep the other's non-public information confidential, use it only to perform this Contract, and disclose it only to staff and advisers who need it and are bound by confidentiality.

11.2 This excludes information that is public through no fault of the recipient, or that a competent authority lawfully requires, provided the other party is told where possible. The duty lasts 3 years after the Contract ends, and information is returned or destroyed on request.

Article 12: Force majeure and exceptional circumstances

12.1 A party is not liable for delay or failure caused by an event beyond its control that was unforeseeable and unavoidable, provided it notifies the other within 7 days and makes reasonable efforts to limit the effect. Force majeure does not excuse paying what fell due before it occurred.

12.2 Affected obligations are suspended for the duration. If the event lasts more than 60 days, either party may terminate by written notice, with payment for work actually performed.

12.3 If unforeseeable general exceptional circumstances make performance so onerous as to threaten a heavy loss, the affected party may request renegotiation without delay while continuing to perform, as provided by the Civil Transactions Law.

Article 13: General provisions

13.1 Notices are in writing and sent to the addresses at the head of this Contract; the registered e-mail is valid, and a notice counts as received on the next Business Day. Each party shall report any change of address.

13.2 Neither party may assign this Contract or subcontract without the other's prior written approval, and it remains responsible for its subcontractors.

13.3 Delay in using a right does not waive it, and this Contract changes only by a signed written annex. If a provision is void the rest stays in force, unless that provision was the reason for contracting.

13.4 The parties shall comply with the rules against bribery, corruption and money laundering. Neither is the agent, partner or employer of the other, and each bears the obligations of its own staff.

13.5 This Contract may be signed electronically under the Electronic Transactions Law, and electronic signatures and records have their legal force. It is made in two copies, one for each party.

Article 14: Governing law and disputes

14.1 This Contract is governed by the laws of the Kingdom of Saudi Arabia, including the Civil Transactions Law, and in a manner consistent with Islamic Sharia.

14.2 The parties shall try to settle any dispute amicably through their representatives within 30 days of notice, and may then use conciliation through the Taradhi platform.

14.3 If it remains unresolved, it shall be decided by: Forum: the competent courts in the city of ... / arbitration under the rules of the Saudi Center for Commercial Arbitration, seated in .... The parties shall keep performing whatever the dispute does not affect.

14.4 Where made in Arabic and English, the Arabic text prevails in any difference.

Schedules

• Schedule 1: description, condition and photos of the item at delivery.

Signatures

The parties sign this Contract after reading and accepting all of its terms.

| First Party (Lessor) | Second Party (Hirer) |

| --- | --- |

| Name: First party signatory | Name: Second party name |

| Signature: First party signature | Signature: Second party signature |

| Date: Signing date | Date: Signing date |