There are more than seven billion people in the earth’s population, which is why transportation vehicles are significant to be acquired especially for those who live in areas where there are tons of streets and addresses to locate to. However, buying an automobile may be more expensive than leasing one for a specific timeline. This is why automobile owners create and print out legal forms such as an auto lease contract form intended for their renters or their lessee.
An auto lease contract form is a document that is used for laying out an agreement between the automobile owner and the lessee. The form can be used for varying categories of automobiles ranging from passenger vehicles, goods vehicles, light- and heavy-duty vehicles, as well as transmission vehicles. But, regardless of the variety of vehicle or automobile to be leased out, it is important that the contract is understood by both parties along with a witness individual.
Different lease contracts will have different sections and inclusions. With this, when it comes to auto lease contracts, the form must be able to state the regulations pertaining the usage of the automobile as well as the price and the fees that come with the lease. Below are some of the other sections and details to be included in this type of contract form:
1. Contract Preamble – This is where the names of the parties who are distinguished as the lessor and the lessee are stated along with the introduction of the agreement. The parties will also be identified as to whether they are joining the contract as an entity or as an individual person. You may also see commercial lease contract forms.
2. Automobile Description – The vehicle identification number or the VIN is indicated in this section along with the license plate number. Other details to be written in this section can be the model and make of the vehicle, and the year in which the vehicle was obtained by the owner or the lessor. Additionally, the mileage limits are also detailed in this section for further descriptions of the automobile’s capacity. You may also see sample residential lease forms.
3. Price, Fees, and Expenses – This section is significant for informing the lessee of how much he will have to pay in order to borrow or rent out the automobile within a duration of hours or days. The amount is accompanied by the time period that the lessee is renting for the automobile as well as the mileage charges and maintenance expenses that the lessee needs to provide to ensure that the rented automobile is in good condition before and after the lease. You may also see rental lease agreement forms.
4. Insurance and Damage Control – As a sort of protection and security for the lessor that his property will not be taken for granted by any lessee or renter, the contract must demand the lessee to use his own insurance policies and liabilities as he rents the automobile. This ensures that any damage done to the property will be taken care of and fixed by the lessee especially during accidents and uneventful incidents resulting to the automobile’s destruction. You may also see sample lease agreement forms.
After all the sections are stated in an auto lease contract form, the lessee and the lessor must both affix their signatures on the signature block at the end of the terms and conditions. The signatures indicate the approval of both parties that they are acknowledging the agreement and that they will begin to execute the statements and rules in the contract. You may also see lease agreement form templates.