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Car rental agreement

  1. Subject of the Agreement

    The LESSOR transfers and the LESSEE receives the rights of using the following car for a valuable consideration (rent).

    1.1.   The Car which is rented out is in good technical condition without visible damages to the car, its body or tyres, and with full fuel tank. A security deposit is paid in the amount of € 150-500.
    1.2.   The Car which is returned is in good technical condition without visible damages to the car, its body and tyres, and with full fuel tank.
    1.3.   Driving distance limit is 300km per day.
  2. Rights and obligations of the Parties
    2.1.   Rights of the Lessee

    To use the rented Car without creating any hindrances for the whole period defined in clause 1.3 hereof within the territory of Latvia, as well as in other countries, provided that the LESSOR has issued an appropriate authority for this.

    2.2.   Obligations of the Lessee
    2.2.1.   To pay the rent by making a full advance payment.
    2.2.2.   To receive and use the Car with care and in compliance with the instructions of the technical documentation. To observe the requirements of the manufacturer and the LESSOR with regard to the exploitation of the Car, as well as the requirements of insurance policies.
    2.2.3.   To cover unexpected expenses that accrue during the Car rental period, including Car washing and interior cleaning.
    2.2.4.   To pay fines for violations of traffic rules or car parking rules.
    2.2.5.   To return the Car to the LESSOR with full fuel tank.
    2.2.6.   To cover all insurance and other expenses if the Lessee uses the Car for travelling outside Latvia.
    2.2.7.   To observe the expected driving distance limit indicated in clause 1.3 hereof. The LESSOR shall be entitled to request from the LESSEE an additional fee for exceeding the driving distance limit defined in clause 1.3 hereof in the amount of 0.07 € per every extra kilometre, in accordance with the limit defined in clause 1.3 hereof. Should this Agreement be prolonged or terminated, the Parties shall determine the exceeded driving distance amount. The LESSOR shall be entitled to check how the defined driving distance is observed by the LESSEE at any time, and should the LESSEE exceed the distance defined in clause 1.3 by more than 20%, to make a bill to the LESSEE of additional fee for extra kilometres.
    2.2.8.   To inform the LESSOR immediately in the following cases:
    • The Car is lost, damaged, destroyed partially or completely;
    • To inform the LESSOR in writing within three days if the address, bank details or other details of the Lessee indicated herein has changed;
    • The Car gets involved in a road accident;
    • Other important events take place that can have an effect on fulfilment of this Agreement.

    2.2.9.   To use the Car with care and accuracy and to strictly observe the Car usage instructions of the manufacturer.
    2.2.10.   The Car shall not be used:
    • for transporting pay passengers irrespective of whether it is done on purpose or not;
    • for pushing or towing another vehicle or a trailer;
    • for transporting goods by violating customs regulations or in any other illegal way;
    • if the driver is under the influence of alcohol or drugs;
    • in motor racing or for preparing for motor-racing;
    • abroad, unless an appropriate permission is given by the Lessor;
    • for training drivers;
    • for driving outside officially marked roads.

    2.2.11.   To be responsible for all obligations applicable to general threat sources, which result from causing damages to third persons.
    2.2.12.   To check the level of liquids and lubricants necessary for Car operation and immediately inform the LESSOR on any deviances in this regard. It is forbidden to fill in any liquids or lubricants necessary for Car operation without prior consent of the LESSOR, otherwise the LESSEE becomes fully responsible for the possible consequences. The liquids mentioned in this clause do not include fuel and windscreen washing liquid. The LESSE shall use the fuel and windscreen washing liquid defined by the Car manufacturer, otherwise the Client becomes fully responsible for the possible consequences.
    2.2.13.   Should any technical damage occur (including a speedometer defect), the LESSEE shall inform the LESSOR on this within one day.
    2.2.14.   Leaving the Car without supervision during night time from 10 pm to 8 am, the LESSEE shall park the Car in a guarded parking lot.
    2.2.15.   Smoking in the Car is forbidden. Penalty for smoking is € 55.
    2.3.   Rights of the LESSOR
    2.3.1.   The LESSOR shall be entitled to receive the Car back after expiration of the rental term mentioned in clause 1.3 hereof or after expiration of the rental agreement term.
    2.3.2.   To check whether the Lessee observes the regulations of the Car exploitation and rental.
    2.3.3.   To terminate the rental agreement if the Lessee does not observe the regulations of the Car exploitation, treats the Car without care, does not observe traffic rules or transfers the rented Car for using by another person.
    2.3.4.   To request a fee from the Lessee if the Lessee returns the Car unwashed, without full fuel tank or with defects on which the Lessee has not informed the LESSOR before.
    2.3.5.   If the Lessee violates the payment procedure described in clause 3, the Lessor shall be entitled to give the personal data of the Lessee to third persons.
    2.4.   Obligatons of the LESSOR
    2.4.1.   To prepare and organise the process of renting the Car in accordance with the provisions and procedure defined in this Agreement.
    2.4.2.   Before renting out the Car, to pay all duties, taxes, insurance payments stipulated in laws and regulations to insure unhindered usage of the Car during the rental period.
    2.4.3.   To carry out maintenance of the Car. If according to the maintenance schedule the maintenance works of the Car are to be carried out during the rental period, the maintenance time shall be agreed with the Lessee before renting out the Car or another rental Car shall be ensured for the maintenance period.
    2.4.4.   To prevent any technical defects that have occurred during the rental period – not later than within 3 (three) days after the Lessee informs the LESSOR about them. Should the prevention of defects require more time, the LESSOR shall ensure another Car for the time period that is necessary for preventing the defects.
    2.4.5.   To provide help to the Lessee in case of a road accident or Car damage.
    2.4.6.   Not to charge money from the LESSEE for terminating the rental period if this has occurred due to the fault of the LESSOR.
  3. Payment procedure
    3.1.   Herewith the Parties agree that for using the Car mentioned in clause 1 hereof the LESSEE shall pay to the LESSOR the rent defined in clause 1.5 making a full advance payment by transferring the amount of money to the LESSOR'S bank account or by paying in cash at the moment of concluding the agreement. The LESSEE shall pay in addition for Car repair if the reason of the repair is deterioration of the technical condition of the Car caused by intentional negligence or unconscientious Car usage by the LESSEE, as well as repair expenses that are not covered by repair and maintenance warranty or insurance. The payments are to be made appropriately in the defined time, so that they enter the LESSOR'S bank account on the date defined in the payment schedule or in the respective bill.
    3.2.   The LESSOR shall be entitled to change the payment amount mentioned in clause 3.1 unilaterally if such amendments have been introduced in the state legislation that have an effect on fulfilment of this Agreement.
    3.3.   The LESSEE shall cover any and all expenses, taxes, penalties, penalty interest for delays etc., and payments connected with the Car, unless the Parties have agreed otherwise. In case if third persons raise claims against the LESSOR with regard to any negligence by the LESSEE, the LESSOR shall inform the LESSEE about this claim. Should the LESSEE not satisfy the request within 5 (five) days after receiving this message from the LESSOR, the LESSOR shall be entitled to request that the LESSEE covers the requested amounts of money, compensates losses which have accrued from hearing the claim, and the penalty fee of € 30. The LESSEE shall submit to the LESSOR a document that testifies that payments have been made within 3 (three) days after receiving the bill.
    3.4.   In case of delaying the payment, for each payment stipulated by this Agreement the Parties undertake to pay a penalty in the amount of 1% (one percent) of the unpaid amount for each day of delay.
    3.5.   Should the LESSEE not make the payments defined herein, the LESSOR shall be entitled to cover at first the penalty interest and other expenses defined herein taking means from the received payments and only then to cover the debt of the LESSEE taking means from the remaining resources.
    3.6.   Should this not be otherwise indicated in clause 1 hereof, the payments to be made hereunder do not include:
    • Expenses of fuel and windscreen washing liquid;
    • Car washing and waxing;
    • Repair expenses for mechanic damages of tyres.

    3.7.   The LESSEE shall pay to the LESSOR for providing the services defined in clause 3.6, in accordance with the additional bills issued by the LESSOR.
    3.8.   Under no circumstances shall the LESSOR hold any responsibility for financial or time losses of the LESSEE or for situations when the LESSEE has not fulfilled his/her duties against third persons irrespective of whether these duties derive from this Agreement or not. The LESSOR shall not be responsible for any damages to property that has been in the Car during the rental period or has been transported by the Car.
    3.9.   The LESSOR shall not be responsible for any moral or other indirect losses that could have occurred in connection with this Agreement.
    3.10.   If after the expiration of the Agreement term it turns out that the LESSEE has not met all obligations towards third persons or the LESSOR, the LESSEE shall meet all such obligations and comply with the sanctions defined in this Agreement.
    3.11.   The LESSOR shall be entitled to include the following payments in the rent:
    • payment for fuel if the fuel tank is not full when the Car is returned;
    • payment in the amount of 0.07 € for every extra km exceeding the expected driving distance limit defined in clause 1.3 hereof;
    • payment for damages that have occurred due to the fault of the Lessee;
    • insurance self-risk amount if the event covered by insurance has happened due to the fault of the Lessee;
    • penalty fees for violation of traffic rules if there has been any during the rental period and the Lessee has not covered them.

    3.12.   In case if the rental period exceeds 1 month, the LESSOR and the Lessee shall agree on the rent payment in parts.
  4. Term of the Agreement
    4.1.   This Agreement shall come into effect at the moment of signing it.
    4.2.   This Agreement shall terminate when all rights and obligations deriving from it have been used and fulfilled, but not before the Parties have fulfilled all their obligations that have arisen before the expiration date of the Agreement or before premature cancellation of the Agreement.
    4.3.   The LESSOR shall be entitled to terminate this Agreement before expiration of the term if:
    4.3.1.   The LESSEE has not settled a payment in the term defined herein;
    4.3.2.   Commercial liabilities are annulled, lost, divided, transformed or declared bankrupt;
    4.3.3.   The LESSEE has provided incorrect data when concluding this Agreement;
    4.3.4.   The LESSEE has caused an accident resulting in damage to the Car, which exceeds 50% of the insured value of the Car;
    4.3.5.   The LESSEE has informed that the Car has been destructed, stolen, and the Car is not found within 30 days;
    4.3.6.   Due to negligent treatment by the LESSEE, the value of the Car has significantly decreased as a result of which the price decrease exceeds the regular price decrease, which is caused by the expected Car usage;
    4.3.7.   The LESSEE has concluded another agreement with the LESSOR and does not fulfil this Agreement;
    4.3.8.   The LESSEE does not fulfil his/her obligations stipulated by this Agreement in any other way;
    4.3.9.   The LESSEE wants to terminate this Agreement before the expiration date at his/her own initiative.
    4.4.   In case if the Agreement is terminated before the expiration term in accordance with clauses 4.3, 4.3.1, 4.3.2, 4.3.3, 4.3.6, 4.3.7, 4.3.8 or 4.3.9, the LESSOR shall be entitled to request that the LESSEE compensates the losses incurred to the LESSOR due to terminating this Agreement before expiration date, but not more than in the amount of 30% of the initial Car value.
    4.5.   By terminating the Agreement before its expiration date none of the previously made payments shall be returned to the LESSEE.
  5. Dispute settlement procedure

    Any disputes between the Parties shall be settled by means of mutual negotiations. If it is impossible to settle a dispute in this way, the dispute shall be settled by the Baltic International Arbitration Court in Riga by one arbitrator in accordance with the Rules of this arbitration court and the legislation of the Republic of Latvia.

  6. Final provisions
    6.1.   Titles and definitions used in this Agreement are included only for reference and shall not have any effect on rights and obligations of the Parties defined by this Agreement.
    6.2.   The LESSEE shall not be entitled to transfer to anybody his/her rights and obligations under this Agreement. To transfer their rights and obligations the LESSOR does not need the consent of the LESSEE.
    6.3.   The LESSEE and the LESSOR have all the legal rights, authorities and legal capabilities stipulated by the legislation of the Republic of Latvia that are necessary for complete fulfilment of the obligations hereunder in due time and according to the Agreement.
    6.4.   By signing this Agreement the LESSEE confirms that he/she has full rights and authorities to sign this Agreement in accordance with the legislation of the Republic of Latvia and that he/she has familiarised himself/herself with this Agreement and has understood its wording and the obligations he/she undertakes herewith.
    6.5.   The LESSEE shall be responsible for fulfilment of the obligations hereunder (solvency) with his/her property that he/she has owned before or will own in future.
    6.6.   This Agreement is made and signed in duplicate, both copies having equal legal power; one of the copies is kept by the LESSEE and the other copy is kept by the LESSOR.
    6.7.   In case of disputes the prevailing language shall be the local language of the court.