Vehicle Use Agreement Between Two Parties Template for India

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Key Requirements PROMPT example:

Vehicle Use Agreement Between Two Parties

"I need a Vehicle Use Agreement Between Two Parties for my construction company to lend our heavy-duty truck to a partner company for a 6-month infrastructure project starting March 2025, including commercial insurance requirements and cross-state operation permissions."

Document background
The Vehicle Use Agreement Between Two Parties is a crucial legal instrument in India for establishing a formal arrangement between a vehicle owner and user. This document is essential when any party wishes to grant temporary use of their vehicle to another party while maintaining ownership rights. It is particularly relevant in today's sharing economy and business environment where vehicle sharing and temporary use arrangements are becoming increasingly common. The agreement ensures compliance with Indian transportation laws, particularly the Motor Vehicles Act, 1988, and addresses key aspects such as liability, insurance, maintenance responsibilities, and usage restrictions. It serves both commercial and private purposes, providing legal protection and clarity for all parties involved while maintaining compliance with Indian contractual and transportation regulations.
Suggested Sections

1. Parties: Identifies and provides full details of the vehicle owner and the user/borrower

2. Background: Briefly explains the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, VIN, registration number

5. Term of Agreement: Specifies the duration of the vehicle use arrangement

6. Permitted Use: Defines authorized uses, geographical limitations, and any restrictions on vehicle use

7. User Responsibilities: Outlines the user's obligations regarding vehicle operation, safety, and care

8. Owner Responsibilities: Details the owner's obligations regarding vehicle maintenance, insurance, and documentation

9. Insurance and Liability: Specifies insurance requirements and allocation of liability for accidents/damage

10. Maintenance and Repairs: Details responsibility for routine maintenance and repair procedures

11. Fees and Costs: Outlines any usage fees, fuel costs, maintenance costs, and payment terms

12. Termination: Describes circumstances and procedures for ending the agreement

13. Dispute Resolution: Specifies procedures for resolving disagreements

14. Governing Law: Specifies that Indian law governs the agreement

15. Signatures: Space for parties to execute the agreement

Optional Sections

1. Multiple Drivers: Include when additional authorized drivers are permitted, listing requirements and approval process

2. Commercial Use: Include when vehicle is permitted for business/commercial purposes, specifying additional terms

3. Tracking Devices: Include when GPS or other tracking devices are installed, addressing privacy and data usage

4. Cross-Border Travel: Include when vehicle may be driven across state lines or international borders

5. Modification Rights: Include when user is permitted to make modifications to the vehicle

6. Subletting Prohibition: Include explicit terms prohibiting subletting when necessary

7. Environmental Compliance: Include specific environmental requirements for commercial or heavy vehicles

8. Special Permits: Include when special permits or licenses are required for vehicle operation

Suggested Schedules

1. Schedule A - Vehicle Condition Report: Detailed inspection report documenting vehicle condition at handover

2. Schedule B - Fee Schedule: Breakdown of all applicable fees, charges, and payment terms

3. Schedule C - Maintenance Schedule: Detailed maintenance requirements and schedules

4. Schedule D - Insurance Details: Comprehensive insurance information including policy numbers and coverage

5. Schedule E - Authorized Drivers: List of approved drivers with license details (if multiple drivers permitted)

6. Appendix 1 - Vehicle Registration Documents: Copies of vehicle registration and other official documents

7. Appendix 2 - Usage Guidelines: Detailed guidelines for vehicle operation and maintenance

8. Appendix 3 - Incident Report Form: Template for reporting accidents or damage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Transportation

Logistics

Car Rental

Fleet Management

Corporate Services

Sharing Economy

Tourism

Construction

Manufacturing

Retail

Agriculture

Healthcare

Education

Real Estate

Professional Services

Relevant Teams

Legal

Operations

Fleet Management

Procurement

Risk Management

Compliance

Administrative Services

Human Resources

Facilities Management

Contract Management

Relevant Roles

Fleet Manager

Operations Manager

Legal Counsel

Compliance Officer

Transportation Manager

Logistics Coordinator

Risk Manager

Contract Administrator

Business Owner

Facility Manager

Administrative Officer

Human Resources Manager

Procurement Manager

Property Manager

Safety Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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