Motorised Vehicle Rental Terms and Conditions
1. The vehicle is transferred to the Lessee for use against remuneration, based on the Motorised Vehicle Rental Agreement, hereinafter referred to as – “the Rental Agreement”.
2. Before signing the Rental Agreement, LLC “Motofavorīts”, hereinafter referred to as – the Lessor, shall acquaint the Lessee with the vehicles rental terms and conditions, the effective pricelist of rental fees and other payments related to rental of vehicle, vehicle insurance conditions, as well as the liability according to the provisions of the Rental Agreement.
3. The Lessor's vehicle civil liability is insured in accordance with OCTA and CASCO conditions.
4. Throughout the period of the Rental Agreement the Lessee shall assume liability for any possible damage, which may be caused to third parties by using the vehicle.
5. The effective Road Traffic Regulations shall be binding upon the Lessee.
6. The rental fee and payment procedures are specified in the Rental Agreement.
7. Receipt and returning of the vehicle to the Lessor shall take place pursuant to the procedure, at the place and time specified in the Rental Agreement upon mutual agreement between the Parties.
8. When signing the Rental Agreement, private persons shall present a valid passport and valid driver's licence, which corresponds to the rented vehicle category and the length of driving experience required for the respective category.
9. Whereas legal entities shall submit copies of registration and VAT payer certificates, presenting originals of the documents, as well as a guarantee letter.
10. By signing the Rental Agreement, the Lessee certifies, that:
he/she has a valid driver's licence of the respective category and with the required length of driving experience;
he/she agrees to pay for vehicle rental services and settle any additional payments in accordance with the Rental Agreement.
rental terms and conditions and provisions of the Rental Agreement are understandable, he/she has received comprehensive and complete information about the vehicle, payment procedures, liability, obligations in the case of failure to fulfil or improper fulfilment of the Rental Agreement, agrees to all rental terms and conditions and provisions of the Rental Agreement, has become acquainted with conditions of OCTA and CASCO, and the insurance cover (incl. deductible) and undertakes to strictly comply with these conditions. In any accident occurs, which falls under CASCO insurance risk, the Lessee's deductible liability is 20% of the amount of loss, but not less than 500 EUR, or 100% of the amount of loss, if the insurance company refuses to disburse insurance indemnity. If a traffic accident occurs, which falls under OCTA insurance cover (the Lessee is not identified as the guilty party), the Lessee's deductible liability is 500 EUR;
if the Lessee is the guilty party in a road traffic accident and CASCO insurance company detects vehicle destruction, the Lessee's deductible is 20% of the vehicle value, which is specified in CASCO policy;
if the vehicle is stolen and the Lessee is able to return a set of vehicle keys and/or technical passport to the Lessor, the Lessee's deductible liability is 20% of the vehicle value, which is indicated in CASCO policy;
if the vehicle is stolen and the Lessee is unable to return a set of vehicle keys and/or technical passport to the Lessor, the “vehicle fraud” deductible liability of 50% of the vehicle value, which is indicated in CASCO policy, applies automatically;
agrees to vehicle inspection within 3 days after expiration of the rental period, if the vehicle is returned dirty, and to cover any loss in the amount of CASCO deductible, if such loss is identified during the period stated above, or cover vehicle cleaning costs to make vehicle inspection possible at the moment of returning the vehicle.
11. By signing the Rental Agreement, the Parties confirm, that they are entitled to sign such an agreement and assume the rights and liabilities included in the Rental Agreement.
12. The vehicle is transferred to the Lessee in generally good condition, without significant defects:
with all accessories and documents, and a set of keys;
full assembly, including all additional equipment, if any;
full fuel tank. Fuel charge is not included in the rental fee.
13. When receiving the vehicle, the Lessee is obliged to raise any complaints/claims regarding the technical/visual condition of the vehicle immediately, before leaving the place of receiving the vehicle.
14. Lessee's obligations:
14.1. To pay a security deposit to the Lessor before receipt of vehicle according to the Lessor's pricelist. The security deposit is returned to the Lessee within 10 days (may vary depending on the Lessee's bank) after returning and transfer of the vehicle to the Lessor on the condition, that no previously non-existent damage and/or defects of the vehicle are detected and the vehicle is in proper technical condition. If the Lessee infringes or fails to fulfil any of the conditions of the Rental Agreement, the Lessor is entitled to withhold the security deposit.
14.2. To strictly comply with rental terms and conditions, provisions of the Rental Agreement and vehicle operation conditions throughout the period of the Rental Agreement.
14.3. To settle vehicle rental payments specified under rental terms and conditions and the Rental Agreement, observing the procedures and deadlines of such payments. A contractual penalty equal to 10% of the payment amount shall be imposed on the Lessee for each delayed payment. The contractual penalty shall be paid in addition to the rental fee and does not release the Lessee from settlement of rental fee.
14.4. The Lessee shall assume responsibility for any mechanical damage, if such has occurred due to the Lessee's failure to comply with the vehicle operation conditions.
14.5. The Lessee undertakes:
14.5.1. not to transfer the vehicle for use by any third party for remuneration or without it;
14.5.2. not to reassemble the vehicle, not to install any auxiliary devices and/or replace the existing auxiliary devices with other devices;
14.5.3. not to repair and/or replace parts of the vehicle arbitrarily oneself or through assistance of any third party without the Lessor's written consent;
14.5.4. while the vehicle is unattended, not to leave in the vehicle its documents and keys, and the vehicle shall be parked at a parking lot with ensured security and video surveillance, when leaving the vehicle unattended;
14.5.5. to observe road traffic regulations.
In the case of traffic accident or technical damage of the vehicle, immediately report the Lessor (phone +371 22036677) and the police according to requirements of the Road Traffic Regulations.
If a road traffic accident has occurred, the Lessee shall act in accordance with the Road Traffic Regulations, including reporting to the police and/or complete the Accident Statement.
If a road traffic accident is caused and the Lessee is identified as the guilty party, a contractual penalty of 500 EUR is imposed, otherwise – 150 EUR.
If the vehicle is damaged as a result of other accidents (for example, a tree or other objects falling on the vehicle), the police shall be called to the place of accident and the Lessee shall ascertain, that an accident protocol is executed. The Lessee shall make sure, that the data of all other parties and witnesses involved in the accident is registered to ensure that the information on the accident is complete. The Lessee is not entitled to agree to any requests of third parties in relation to the accident. In this case CASCO deductible of 20% of the amount of loss, but not less than 500 EUR, comes into effect, which is covered by the Lessee.
14.5.6. To pay all fines imposed for infringements of road traffic regulations, notified to the Lessee by the Lessor or the person detecting the infringement during the Rental Agreement period. If it is detected after returning the vehicle to the Lessor, that the Lessee has not settled payments of fines imposed for infringements of road traffic regulations during the Rental Agreement period, the Lessee shall pay the fines according to documents drafted by state institutions (protocols etc.) and also pay a penalty of 50 EUR to the Lessor.
14.5.7. To return the vehicle to the Lessor at the place and time specified in the Rental Agreement, together with all its accessories, documents and a set of keys, in good technical condition and full assembly, and full fuel tank.
If the vehicle is returned with partially full fuel tank, a charge of 3 (three) EUR per litre is set for the missing amount of fuel.
A contractual penalty according to the agreed rate is imposed in the case of returning the vehicle, if the vehicle returning time specified in the Rental Agreement is delayed. If the Lessee delays returning of the vehicle for more than 12 hours, the Lessee shall pay to the Lessor an additional contractual penalty equal to rental fee for one day.
If the vehicle is dirty when returned to the Lessor, a fee of 20 EUR is charged from the Lessor for vehicle washing in addition to the rental fee.
If the daily mileage limit is exceeded, the Lessor will be charged a fee of 0.30 EUR (with VAT 21%) for each kilometer exceeded, in addition to the rental fee.
15. The Lessee shall be responsible for using a correct fuel when refilling the vehicle fuel tank, as well as for control of the level of oil and other technical liquids at each time of fuel refilling. The Lessee shall immediately notify the Lessor of any deviations concerning the level of technical liquids and greases. It is forbidden to replenish any liquid or grease required for proper operation of the vehicle without the Lessor's prior consent, otherwise the Lessee shall assume full liability for any possible consequences. In the case of occurrence of any technical damage, the Lessor shall be informed immediately.
16. The Lessee is not allowed to:
participate in any kind of competition with the vehicle;
use the vehicle for driver's training;
transfer the vehicle for use to any third party for remuneration or without it;
pledge, sell or otherwise encumber the vehicle with rights in rem;
use the vehicle for illegal action.
17. If the vehicle is used by infringing the rental terms and conditions, the Lessor may terminate the Rental Agreement unilaterally and take over the rented vehicle. In this case the Lessee shall cover all costs related to such takeover.
18. If theft of the vehicle or any of its parts has occurred, the Lessee shall immediately report to the police and the Lessor, and shall ascertain, that the fact of theft is registered, reporting the case reg. number to the Lessor.
19. The Lessee is not allowed to use the vehicle for towing other vehicles, as well as for towing a trailer, without the Lessor's consent.
20. The Lessee shall assume the following responsibility during the Rental Agreement period:
20.1. for full compliance with the rental terms and conditions;
20.2. for any possible loss, which may be caused to third parties by using the vehicle;
20.3. for storage of vehicle documents and/or keys - in the case of loss of vehicle documents and/or keys the Lessee shall cover any loss related to restoration of vehicle documents or keys, as well as 100% of loss incurred by the Lessor in relation to such restoration;
20.4. for observing road traffic regulations and payment of administrative fines imposed for infringements of road traffic regulations;
20.5. for vehicle operation according to the rental terms and conditions, and for returning the vehicle to the Lessor at the place and time specified in the Rental Agreement;
20.6. for any loss caused to the vehicle due to the Lessee's negligence or malevolence, or due to failure to observe the rental terms and conditions and/or other provisions of the Rental Agreement.
If it is detected at returning the vehicle to the Lessor, that any damage has been caused to the vehicle during its operation as a result of the Lessee's guilt or negligence, the Parties shall draw up a deed, indicating the detected damage. After drafting the deed, the vehicle is taken to the Lessor's repair service, where the damage specified in the deed is eliminated at the Lessee's expense. The time required for vehicle repairs shall be included in the rental period and paid for according to the vehicle rental pricelist. If the Lessor is unable to continue renting out the vehicle as a result of damage caused by the Lessee, the Lessee shall cover the Lessor's downtime costs equal to one day rental fee for each day of downtime. The Lessee agrees, that in the case of damage caused to the vehicle or any other infringement described in clause 14.5., the vehicle rental station is entitled to withhold the amount of loss from the Lessee's security deposit without the Lessee's presence, but upon prior notice to the Lessee.
21. The Lessor shall not reimburse to the Lessee any loss or possible expenses, including, but not limited to, Lessor's and/or third party travel costs, cargo or baggage transport costs, vehicle evacuation costs, which may arise from ceasing the trip during the Rental Agreement period due to any reason. The trip cessation risk is not insured.
22. The Lessor does not assume any liability for the property left or transported in the vehicle.
23. The period of the Rental Agreement can be extended upon mutual agreement of the Parties.
24. Any issues that are not discussed in these terms and conditions and/or the Rental Agreement, shall be resolved in accordance with the effective legislation of the Republic of Latvia.
25. Any disputes concerning the vehicle rental shall be resolved through mutual negotiations. If the Parties are unable to reach an agreement within 10 (ten) working days, the respective dispute, disagreement or claim shall be finally resolved in the court according to the effective legislation of the Republic of Latvia.
26. The Rental Agreement may be terminated, amended and supplemented upon written agreement between the Parties, executed as an annex to the Rental Agreement and becoming an integral part of the Rental Agreement.
27. The Rental Agreement is drafted in two identical copies. After mutual signing of the Rental Agreement, one copy thereof is issued to the Lessor, and the other copy – to the Lessee. Both copies have equal legal force.
28. The provisions of the Vehicle Rental Agreement are fully binding upon the Parties, as well as successors of liabilities and rights of the Parties.