The Motor Vehicle Contract of Sale is a crucial legal document used in the Philippines for transferring ownership of vehicles between parties. It serves as the primary agreement in vehicle sales transactions, whether between private individuals, dealerships, or corporate entities. The document must comply with Philippine legal requirements, including the Civil Code, Land Transportation and Traffic Code, and LTO regulations. It typically includes comprehensive details about the vehicle, parties involved, purchase terms, warranties, and transfer procedures. This contract is essential for protecting both buyer and seller interests, facilitating vehicle registration transfer, and ensuring compliance with tax obligations and regulatory requirements in the Philippine jurisdiction.
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1. Parties: Identification of the Seller and Buyer with complete legal names, addresses, and tax identification numbers
2. Background: Brief context of the transaction and confirmation that the Seller owns the vehicle
3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Purchase Price', 'Closing Date', etc.
4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, engine number, chassis number, plate number, and mileage
5. Purchase Price and Payment Terms: Agreed purchase price, payment schedule, and method of payment
6. Seller's Representations and Warranties: Warranties regarding vehicle ownership, condition, absence of liens, and compliance with regulations
7. Transfer of Title and Registration: Process and timeline for transferring vehicle ownership and registration
8. Delivery and Acceptance: Terms for vehicle delivery, inspection, and acceptance
9. Taxes and Expenses: Allocation of transfer taxes, registration fees, and other transaction costs
10. Governing Law: Specification that Philippine law governs the agreement
11. Execution: Signature blocks and execution requirements
1. Financing Terms: Include when purchase is not fully paid in cash, detailing installment terms and security arrangements
2. Trade-in Provisions: Include when another vehicle is being traded in as part of the purchase price
3. Dealer Warranty: Include for new vehicles or when dealer is providing additional warranty coverage
4. Insurance Requirements: Include when specific insurance arrangements are required before transfer
5. Co-owner Provisions: Include when the vehicle will have multiple owners
6. Power of Attorney: Include when one party is authorizing another to handle registration transfer
1. Vehicle Inspection Report: Detailed condition report of the vehicle at time of sale
2. Payment Schedule: If installment payments are involved, detailed breakdown of payment dates and amounts
3. Vehicle Documents: List of all documents being transferred (registration papers, maintenance records, etc.)
4. Photographs: Photos of the vehicle documenting its condition at time of sale
5. LTO Clearance: Copy of LTO verification showing the vehicle is free from encumbrances
6. Deed of Sale: Standard LTO Deed of Sale form as required for registration
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Transportation
Fleet Management
Vehicle Leasing
Car Dealerships
Insurance
Financial Services
Legal Services
Logistics
Relevant Teams
Legal
Sales
Compliance
Administrative
Finance
Operations
Procurement
Risk Management
Contract Management
Business Development
Relevant Roles
Sales Manager
Fleet Manager
Legal Counsel
Compliance Officer
Administrative Officer
Finance Manager
Vehicle Registration Officer
Dealership Manager
Procurement Manager
Contract Administrator
Business Development Manager
Risk Manager
Operations Manager
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