Terms of rental

Rental Agreement

CAR LEASE (RENTAL) AGREEMENT

№ 2019 - __

City of Tbilisi, Georgia                                                                                                                                                                                        «__» _____ 2019

The following Agreement is formed between the following parties: _____________________ subsequently referred to as “LESSEE”, and ”KM Rental Cars, LTD” represented by CEO Alexander Manvelov acting based on the Statute, subsequently referred to as ”LESSOR”,

1.  Subject of the Agreement:

  • 1.1.  LESSOR provides for temporary use (for rent) to LESSEE, in exchange for the agreed upon payment, the vehicle (subsequently, “CAR”) with the following characteristics outlined in the item 1.2 of the present Agreement and in Appendix 1.

1.2. The CAR has following characteristics:

Model:                           ____________

Plate number:              ____________

Year of manufacture:  ____________

Color:                             ____________

Fuel:                               ____________

1.3. Based on the insurance policy, the cost of the CAR is evaluated to be ________ USD. This evaluation is being taken into account in case of any damage compensation.

2. Terms of the Agreement:

2.1. LESSOR will give to the LESSEE the CAR in good condition according to the Acceptance/Transfer Certificate (Appendix 2). The Acceptance/Transfer Certificate is an integral part of this agreement.

2.2. LESSEE takes the obligation to return to the LESSOR the CAR at the expiration of the present Agreement in the condition indicated on the Acceptance/Transfer Certificate, taking into account normal wear and tear.   

2.3. Only LESSEE can drive the CAR. Other cases must be based on the written consent of LESSOR. LESSOR’s written consent is the Appendix 1 of this Agreement, signed by both parties.

2.4. LESSEE is responsible for any and all risks of accidental damage, destruction, or theft of the CAR from the moment of acquiring it until returning it to LESSOR

2.5. If LESSEE finds any kind of flaw(s) in the CAR that impede its usage in whole or in part, LESSOR is obligated, in the shortest amount of time possible after receiving the LESSEE’S statement referencing said flaw(s) to eliminate the flaw(s) without charge or to provide a replacement CAR in good condition.   

2.6. If the flaw(s) in the rented CAR is(are) the result of violation of normal exploitation and care rules by LESSEE, LESSEE is responsible for reimbursing LESSOR for any fees for repair and transportation of the CAR.   

2.7. The CAR will be rented to the persons with a driving experience of no less than 2 years.

3. Lease (Rental) Duration and Acceptable Use Policy:

3.1. The CAR will be given for the following duration:

From « __ » _______ 2019  __ hr __ min.

Till    « __ » _______ 2019  __ hr __ min.

The terms of the present Agreement can be extended by way of forming an Appendix 1.   

3.2. The CAR will be given by the LESSOR to the LESSEE for personal use only.

3.3. The LESSEE is NOT ALLOWED to use/drive the CAR:

  • outside of territories of the following countries: Georgia, Armenia, Azerbaijan, Turkey;

  • On the territory of Armenia, Azerbaijan and Turkey without permission and allowance;

  • under the influence of any substance (alcohol, toxic, drugs);

  • to transport contraband or for any other purpose that is against the  law;

  • for personal gain and for any kind of enterprise/business activity;

  • to transport any other motor vehicles of any size by towing;

  • in any kind of competitions/contests/racing;

  • to transport boxes/parcels/packages or any kind of small or large cargo;

  • in any other way not outlined by this agreement, including but not limited to transferring the CAR or the driving privileges to a third party without written consent of the LESSOR.

3.4. The use of the CAR cannot extend over additional 60 minutes from the time of the end of this Agreement duration as outlined in item 3.1 of this Agreement without due notice to the LESSOR.   

4. Insurance:

4.1. LESSOR insures the CAR.

4.2. LESSOR provides the legally required liability insurance on the CAR.

4.3. In case of damage exceeding insurance reimbursement, LESSEE is fully responsible for the loss to the LESSOR payable from the security deposit submitted by LESSEE as COLLATERAL. Any amount left in the security deposit (after covering any additional damage expenses)will be returned to LESSEE after the LESSOR receives insurance reimbursement.  

4.4. LESSOR is not responsible for any action (or failure to act) of the LESSEE which causes loss/damage, including loss/damage to third parties as well.

4.5. CAR parts and accessories are not insured. LESSEE takes full financial responsibility in case of loss or any damage/spoil of parts and accessories.

4.6. “Zero Deposit” is a paid service that allows you to reduce the liability to zero, and do not leave deposit for the car. This service can be purchased in case of CAR rental for more than 3 days, with daily price 15$ USD and not more than 120$ USD for entire term of the lease.

4.7. “Zero Deposit” service does not free Lessee from the responsibility for loss or damage of additional equipment, interior or documents.

4.8. “Zero Deposit” service will not be in force until registration of damages by Police and Insurance agency. Any damage must be fixed by protocol made by Police and Insurance agency.

4.9. NO reimbursement will be provided in case of violation of terms of the contract or not proper use of the vehicle, also alcohol or drug abuse.

5. Fees and Payment Procedures:

5.1. LESSEE is responsible for CAR rental fee payment in the amount of  _____ GEL.

5.2. To guarantee the due completion of the Agreement, a security deposit subsequently referred to as COLLATERAL will be paid in the amount of 200 GEL.  

5.3. The COLLATERAL is submitted by the LESSEE at the moment of forming the present Agreement in GEL in the amount indicated in item 5.2, according to the Georgian National Bank currency exchange rate on the day of payment

5.4. If any terms and conditions of the present Agreement are violated, including but not limited to timely return of the rented CAR; the damage to the CAR caused by improper exploitation of the CAR or any illegal activity by LESSEE;lost profit for the LESSOR caused by the inability to lease the CAR to the next client due to the CAR not being returned on time by LESSEE;loss of documents and keys and the subsequent expenses by the LESSOR to recover them; loss of any tools, parts, or accessories – the LESSOR is entitled to get reimbursed for those losses/damages/violations immediately upon the CAR return according to LESSOR’s fee schedule at the expense of COLLATERAL. In case of the COLLATERAL not being enough to cover the losses/damages/violations, they must be covered by the LESSEE with additional funds.   

5.5. In case of the CAR being involved in an accident, COLLATERAL will be kept by the LESSOR immediately upon discovering the fact of loss to LESSOR in the amount of 50 us dollars or in the 5% amount of the caused damage, if 5% amount of the caused damage exceeds 50 us dollars, regardless of law enforcement organs or court determining guilt or non-guilt of the LESSEE, regardless of reporting and registering the accident to and by the law enforcement, regardless of the fact whether the LESSEE or a third party caused damage to the CAR and etc., based on the Acceptance/Transfer Certificate.

5.6. In case the Agreement is violated by non-timely return of the vehicle (exceeding 30 minutes after the Agreement duration end without notice), LESSEE is required to pay the new rental fee which is 1.5 times the original amount, starting on the day of exceeding the Agreement duration and until the factual return of the CAR to the LESSOR.

5.7. If this Agreement does not specify the payment for a certain violation/loss/damage, the parties agree on reimbursement based on the current prices for applicable parts, labor, and services as of the year 2019 and on the moment of the said violation/loss/damage.  

5.8. In case of early or late return of the CAR by the LESSEE, any fraction of a day is considered a full 24-day.

5.9. LESSEE agrees for reimbursing any damages to the LESSOR, caused by non-fulfillment or improper fulfillment of the present Agreement for all the time when the vehicle was not in custody of the LESSOR, including but not limited to LESSEE not using the vehicle or repairs done by either LESSOR or LESSEE or third parties, without contest in the amount of 1.5 times the original rental fee amount for each day.

6. Rights and Responsibilities of the Parties:

6.1. LESSOR is obligated:

6.1.1. To provide to the LESSEE the CAR in good condition and fully equipped according to the Acceptance/Transfer Certificate at a certain time and date as determined by this Agreement.       

6.1.2. To allow the LESSEE to test-drive the CAR to evaluate the acceptability of the performance of all parts, mechanisms, etc. after forming the present Agreement.

6.1.3. To return to the LESSEE the due part of the rental fee in case of returning the vehicle earlier than scheduled, provided that the LESSEE complies with item 6.3.5 of the Agreement.

6.2. LESSOR has the right:

6.2.1. To break the present Agreement and to demand the return of the CAR if the LESSEE violates the rules of exploitation of the CAR and/or any terms of this Agreement.

6.2.2. To refuse to LESSEE for any reason the extension of the Agreement duration.  

6.3. LESSEE is obligated:

6.3.1. To carefully study this Agreement, as well as any Instructions and Appendices to this Agreement; to strictly comply with them and to take full financial responsibility for their violation and caused loss/damage in accordance with the laws of Republic of Georgia and terms of the present Agreement; to comply with the terms of this Agreement; to know and obey any applicable traffic laws, rules and regulations.

Also:

  • to use CAR only for its direct purpose according to its technical characteristics and terms of the exploitation;

  • to take good care of the CAR, returning it to the LESSOR in the condition it was received based on the Acceptance/Transfer Certificate and allowing for reasonable and proportional wear and tear of the wheels/tires, parts, mechanisms, etc. in relation to the distance travelled;

  • to keep the CAR in proper technical condition while renting it and to take full responsibility for any incidental charges connected to exploitation of the CAR (fees, fines and other monetary penalty connected to traffic violations by LESSEE while renting the CAR, also fuel expenses etc.);

  • to drive CAR within the boundaries of the regions that are indicated in the item 3.3 of the present Agreement;

  • to instantly inform the LESSOR about any and all flaws/ defect of the CAR;

  • to instantly inform the LESSOR about any and all cases of traffic accident(s);

  • to not conceal any damages to the CAR, to not make any improvements, repairs, or service to the CAR including but not limited to replacing any parts or mechanisms or removing any seals or fixtures without express permission of the LESSOR;  

  • to not transport any items damaging to the CAR body paint or integrity/quality of  CAR upholstery, covers or any interior equipment or any items impeding the normal operation of the CAR, limiting the driver’s view or exceeding the maximum allowed load weight;

  • to return the CAR in clean condition. In case of any contamination to the interior or exterior of the CAR, the LESSEE is required to reimburse the LESSOR for the washing/cleaning fees based on the LESSOR’s fee schedule.

  • to not drive the CAR in under the influence of any substance (alcohol, toxic, drugs);

  • to not smoke in the CAR.

6.3.2. To return the CAR at the date and time specified in this Agreement and in good condition based on the Acceptance/Transfer Certificate.

6.3.3. To pay the costs of lost items, document recovery, any other real loss and any missed profits in the amount of 1.5 times the daily rental fee if the CAR is “idling” (not rentable to other clients) for all the time the CAR is “idling”.

6.3.4. To reimburse the LESSOR for any loss including the accidental destruction of the CAR, if there was a violation of normal exploitation rules of the CAR or any other terms and conditions of this Agreement, including if:

  • the LESSEE was under the influence of any substance (alcohol, toxic, drugs) at the moment of the car accident;

  • the CAR was used for off-road driving or teaching/learning the driving skills;

  • there is any damage to the interior of the vehicle, suspension or tires.

6.3.5. To notify the LESSOR about returning the vehicle before the scheduled date and time with a 24-hour advance notice.

6.4. Any arguments between the parties, if not settled by personal negotiation, are to be sorted out legally based on the governing law(s) of the Republic of Georgia and based on the location of the LESSOR.

7. Agreement Duration Terms

The contract is valid until the signing of the appendix of acceptance and transfer when returning the car, and it can be extended with the mutual agreement of the parties.

8. Other conditions

8.1. The agreement can be terminated before the end of its duration term with the mutual agreement of the parties.

8.2. Any issues not outlined in this Agreement are governed by the current law(s) of the Republic of Georgia.  

8.3. The Agreement is created in two identical copies with equal legal power.

9. Addresses and requisites:

LESSOR:

“KM Rental Cars, LTD”

Identification code: 402000437

Juridical address: Vaja-Pshavela Ave. 76b, Tbilisi