Rental Terms
The rental terms were originally drafted in Latvian. This translation is provided for informational purposes only and is intended for general understanding. In the event of any discrepancies between the translation and the original text, the Latvian version shall prevail.
1. SUBJECT OF THE AGREEMENT
- 1.1. By concluding the Agreement, the Lessor grants the Lessee the right to own and use (lease) the Vehicle, but the Lessee undertakes to accept the Vehicle for lease for the term specified in the Agreement, as well as to pay the Contract payments in accordance with the provisions of the Agreement.
- 1.2. The Lessee confirms that he has independently and at his own discretion selected the Vehicle and has become familiar with its visual and technical condition.
- 1.3. The Agreement shall enter into force and shall be deemed concluded on the date of its signing, and shall be valid until the obligations of the Agreement are fully fulfilled.
2. USE OF THE VEHICLE
- 2.1. The Lessee shall use the Vehicle in accordance with the terms of this Agreement, taking into account the usual requirements for driving vehicles and the applicable road traffic regulations. The Lessee confirms that throughout the term of the Agreement the Lessee has a valid driver’s license and complies with the driver’s obligations set forth in applicable laws and regulations.
- 2.2. The Lessee or any of its users is prohibited from:
- 2.2.1. driving the Vehicle under the influence of alcohol, intoxicating or narcotic substances,
- 2.2.2. smoking or using electronic cigarettes and other tobacco products;
- 2.2.3. transporting illegal or dangerous objects and substances that may damage the Vehicle;
- 2.2.4. drive the Vehicle aggressively or recklessly, including exceeding the permissible driving speed specified in regulatory enactments by 30 km/h, skidding or otherwise violating applicable road traffic regulations.
- 2.3. The Lessee does not have the right to transfer the Vehicle for use to a third party without the written consent of the Lessee. Third parties for the purposes of this clause are not considered to be the Lessee’s spouse, children and parents who have reached the age of majority, or a person who is in an employment relationship with the Lessee. When transferring the Vehicle for use to the persons referred to in this clause, the Lessee is responsible for ensuring that they have reached the age specified in the Vehicle Insurance Regulations, as well as that they have a valid driver’s license and comply with the driver’s obligations specified in applicable regulatory enactments. The Lessee remains fully liable to the Lessor for the fulfillment of the terms of the Agreement and for possible expenses and losses that may arise from improper operation of the Vehicle, regardless of who has driven the Vehicle.
- 2.4. The Vehicle may not be used:
- 2.4.1. for driving that could reduce the value of the Vehicle more than it would under normal driving conditions, for example, the vehicle may not be used for off-road driving;
- 2.4.2. for driving training, providing taxi or courier services;
including towing a trailer, trailer or similar object - 2.4.3. for driving on the track, in speed races, street races or other types of competitions;
- 2.4.4. for leasing, subleasing or any type of commercial passenger transportation, as well as other types of services that significantly increase the mileage and/or wear and tear of the Vehicle.
- 2.5. The Lessee shall bear without limitation any possible expenses or losses in relation to claims of third parties that may arise during the operation of the Vehicle.
- 2.6. The Lessee shall not have the right, without the written consent of the Lessor, to carry out repairs, reconstruction and/or make changes to the technical equipment of the Vehicle, including changing the modification of the Vehicle or installing special equipment, and to make improvements that contradict the requirements specified in the technical documentation of the Vehicle or applicable regulatory enactments.
- 2.7. During the lease term, the Lessee is allowed to drive the Vehicle no more than the permissible mileage specified in Clause 1 of the Agreement. If, after the end of the Lease Term or during the term of the Agreement, it is determined that the specified permissible mileage has been exceeded, the Lessee is obliged to pay for the additional kilometers traveled, in accordance with the fee specified in the Agreement.
3. TRANSFER AND ACCEPTANCE OF THE VEHICLE
- 3.1. The Lessor shall transfer the Vehicle to the Lessee only after the Lessor has received the first monthly Lease payment or the First Installment, if applicable, in accordance with the Basic Terms of the Agreement, and the Parties have signed this Agreement and the Vehicle Acceptance and Transfer Act (hereinafter referred to as the “Acceptance and Transfer Act”).
- 3.2. The Lessor retains ownership of the Vehicle and the Lessor shall retain one electronic key to the Vehicle throughout the term of the Agreement.
- 3.3. By signing the Agreement and the Acceptance and Handover Act, the Lessee confirms that the Vehicle meets the Lessee’s needs and that he has familiarized himself with and verified the technical and visual condition of the Vehicle.
- 3.4. The Lessor assumes full responsibility for with the Vehicle from the moment when the Lessee hands over the Vehicle to the Lessor, together with its registration certificate and keys, until the moment when the Vehicle, together with its registration certificate and keys, is returned to the Lessee.
- 3.5. The Lessee is obliged to return the Vehicle in the same condition in which it was received, except for normal wear and tear.
4. CONTRACTUAL PAYMENTS AND EXPENSES
- 4.1. The Lessee shall pay the Lessor the monthly Rental Fee specified in Clause 1 of the Agreement by depositing the Rental Fee into the Lessor’s account no later than the Monthly Rental Payment Date and in the amount specified in the Agreement. If the payment term of the Agreement coincides with a weekend or holiday, then payments shall be made on the previous business day.
- 4.2. The rental fee is calculated starting from the moment of signing the Acceptance-Handover Act, when the Lessee has accepted the Vehicle, and the calculation is suspended on the next day after the Vehicle is handed back to the Lessor, which is confirmed by the relevant Acceptance-Handover Act.
- 4.3. Together with the first month’s rental payment, the Lessee also makes a security deposit payment in the amount specified in paragraph 1 of the agreement. The security deposit is returned to the Lessee after the Vehicle is returned to the Lessor, as evidenced by the mutual signing of the Acceptance-Handover Act. The Lessor reserves the right not to return the security deposit or to return it partially in cases where losses are detected to the Lessor due to the Lessee’s fault.
- 4.4. The Lessee shall pay the Lessee the First Payment in the amount specified in the Basic Terms of the Agreement. If the First Payment is not applied, at the time of conclusion of the Agreement the Lessor shall submit to the Lessee an invoice for the Rental Fee of the first month of the Lease, which shall be paid on the same day or until the moment of receipt of the Vehicle.
- 4.5. The Lessor has the right to amend the Contract payments, informing the Lessee of the changes 30 (thirty) days in advance.
- 4.6. The Lessor shall pay the administrative fines or other fines and other payments relating to the Vehicle, imposed on the Lessor as a result of the Lessee’s violation, within the period specified by law. The Lessee shall reimburse the Lessee for the fines imposed in accordance with the invoice issued by the Lessor. The Lessee shall also reimburse the Lessee for any fines imposed on the Lessee after the expiry of the Agreement due to a violation committed by the Lessee during the term of the Agreement.
- 4.7. The Parties agree that any payments arising from the Agreement shall be made within 5 (five) business days after receipt of the Lessor’s invoice/notice.
- 4.8. The Lessor is entitled to apply default interest for the payment specified in the Agreement, except for the contractual penalty, for delay until the fulfillment of obligations or until the termination of the Agreement in the amount of 0.5% (zero, point, five percent) of the amount not paid on time for each day of delay, but after the termination of the Agreement, statutory interest. The Lessor is entitled to remotely block or repossess the Vehicle without prior notice if the Lessee delays any payments arising from the Agreement for more than 10 (ten) business days.
- 4.9. The payment of the contractual penalty specified in the Agreement does not release the Lessee from the obligation to fulfill the obligations specified in the Agreement and to compensate for losses/expenses.
- 4.10. All payments in accordance with the Agreement and the invoices issued by the Lessor must be made by the Lessee regardless of whether the Vehicle is usable at the relevant time or not. Partial or complete restriction of the use of the Vehicle, due to damage, loss or complete destruction of the Vehicle, disputes related to the Vehicle, detention of the Vehicle, delivery to the parking lot of the relevant institution and/or evacuation by state authorities for any reason, as well as disputes with the insurer, do not release the Lessee from the obligation to fulfill the obligations assumed under the Agreement.
- 4.11. The Lessee has the right to freeze the Agreement for up to 3 months during the 12-month rental period, if the Lessee returns the car to the Lessor during this time. During this period, rental payments are not applied, but a one-time contract freezing fee of EUR 100 is applied. The minimum contract freezing period is 1 week and the maximum period is 3 months. The Lessee is obliged to inform the Lessor in writing 14 days before the contract freezing.
5. VEHICLE MAINTENANCE AND REPAIR TERMS
- 5.1. During the term of this Agreement, the Lessor shall provide technical maintenance of the Vehicle, wear and tear checks, measurements, adjustment and warranty repairs, a set of tires suitable for the season, as well as organize a technical inspection of the Vehicle in accordance with regulatory enactments.
- 5.2. The Lessee shall pay or cover the expenses at his own expense for:
- 5.2.1. parking services, as well as other payments that may arise during the use of the Vehicle for the needs of the Lessee;
- 5.2.2. repairs after accidents or other Insured Events, except in cases where the Transport the vehicle is insured against these risks, repairs may be covered by insurance compensation;
- 5.2.3. repair of damage resulting from improper operation, including the elimination of damage caused to the Vehicle due to the fault or negligence of the Lessee;
- 5.2.4. elimination of damage if the Lessee has carried out maintenance or repair of the Vehicle without coordination with the Lessor;
- 5.2.5. elimination of damage caused by the driver being under the influence of alcohol or other intoxicating substances;
- 5.2.6. elimination of damage caused to the Vehicle if it was driven by a person who does not have the right to drive a vehicle of the relevant category or by a driver who is not entitled to drive a vehicle, in accordance with Article 3.3 of the Agreement. point, or a person who was incapacitated at the time of the accident;
- 5.2.7. repair of damage caused intentionally to the Vehicle by its user;
- 5.2.8. repair of damage caused by intentional or malicious actions, theft, unauthorized use, robbery, direct exposure to storms, hail, lightning, earthquakes or floods, as well as in cases of fire or explosion, except in cases where the Vehicle is insured against these risks, repair work may be covered by insurance compensation.
6. VEHICLE INSURANCE TERMS
- 6.1. The Lessor provides accident and loss coverage (hereinafter referred to as the “Coverage”), which is included in the Rental Fee and determines the following:
- 6.1.1. in the event of an accident or damage to the car, the Lessee’s deductible:
- 6.1.1.1. the maximum deductible is 20% of the car’s value;
- 6.1.1.2. the minimum deductible is 1000 EUR.
- 6.2. in the event of an accident or damage to the car for which the Lessee is found to be at fault:
- 6.2.1. The Lessee pays for all repairs that will be carried out to eliminate the defects. A penalty may also be charged for the car’s downtime while the car is being repaired.
- 6.2.2.In the event of total destruction, theft or robbery, the Lessee undertakes to pay the full value of the vehicle.
- 6.3. The terms of the insurance do not apply and the losses are not covered if, at the time of the occurrence of the Covered Event, the Lessee has violated the conditions of use of the Vehicle specified in this Agreement, including driving the Vehicle under the influence of alcohol or intoxicating substances or exceeding the permissible speed specified in regulatory enactments by 50 km/h, or skidding, or otherwise violating applicable road traffic regulations. In such a case, the Lessee must restore the Vehicle at his own expense, as well as continue to pay the Contract payments.
- 6.4. The Lessor shall provide the Vehicle with a valid OCTA policy for the entire duration of the Contract. According to the OCTA insurance contract, the Lessor is the policyholder and the insured.
- 6.5. The Lessee is obliged to comply with the terms of the OCTA insurance contract for the Vehicle. The Lessee is responsible for all the Lessor’s losses and expenses that arise due to the Lessee’s failure to comply with the provisions of the OCTA insurance contract.
- 6.6. In the event of an insured event, the Lessee is obliged to immediately, but no later than 1 (one) business day from the occurrence of the insured event, inform the Lessor about the occurrence of the insured event and the condition of the Vehicle, as well as to act in accordance with the provisions of the OCTA insurance contract.
- 6.7. The Lessee provides the Lessor with assistance and carries out all necessary formalities for requesting and receiving insurance compensation in favor of the Lessor, as well as for resolving disputes.
- 6.8. Damage, destruction, theft, robbery or any other accident to the Vehicle, regardless of whether the Lessee is to blame for it, does not release the Lessee from fulfilling the obligations provided for in the Agreement, including, but not limited to, making Lease payments, restoring the condition of the Vehicle or compensating the Lessor for the residual value if the condition of the Vehicle cannot be restored or the Vehicle has been stolen.
- 6.9. The Lessee is liable for all losses and compensation for damage that will arise for third parties and the Lessor if the Lessee has not complied with the provisions of the MTPL insurance contract or the insurer has refused to pay the insurance premium due to the fault of the Lessee or persons to whom the Lessee has transferred the Vehicle, as well as in cases where the amount of compensation for losses and/or damage of third parties and the Lessor exceeds the amount of compensation paid by the insurer.
7. RIGHTS AND OBLIGATIONS OF OTHER PARTIES
- 7.1. The Lessee is obliged to present the Vehicle to the Lessor within 3 (three) calendar days after the Lessor’s request and to give the Lessor the opportunity to check the condition of the Vehicle.
- 7.2. If the Vehicle is detained, deliver it to in the parking lot of a public institution and/or evacuated by state authorities for any reason, the Lessee is obliged to immediately take all necessary actions to recover the Vehicle, but in the event that the Lessee is also detained, the Lessor has the right to take over the Vehicle and terminate the Agreement immediately without the obligation to compensate the Lessee for any losses and return to the Lessee the Rental Fee and other payments paid by it, in proportion to the amount of costs incurred by the Lessor (transportation, tow truck, paid fines, etc.).
- 7.3. The Lessee is obliged to immediately, but no later than the next business day after the occurrence of any of the circumstances mentioned in this paragraph, inform the Lessor in writing if:
- 7.3.1. the Lessee’s name, surname, address, e-mail address, telephone number, etc. contact information changes;
- 7.3.2. The Vehicle is confiscated or it becomes known that such circumstances may occur;
- 7.3.3. the Vehicle key, technical and/or other documentation is lost;
- 7.3.4. The Vehicle is lost (including theft), damaged or completely destroyed, or any other event that may threaten the performance of the Agreement has occurred, including a road traffic accident.
- 7.3.5. If the Vehicle is involved in a road traffic accident, the Lessee is obliged to immediately, but no later than the next day, submit to the Lessor the requested documents confirming the fact and circumstances of the road traffic accident. If the requested information is not submitted within the time limit specified in this clause, the Lessee is liable for losses that the Lessor may incur due to the unsubmitted documents.
- 7.4. By mutual agreement, the Lessee has the right to receive a replacement vehicle if the Vehicle has technical damage that has not occurred due to the Lessee’s actions or inaction, as well as as a result of violations of this Agreement. The Lessor shall provide a vehicle of the same type as possible, with a usage period of up to 14 (fourteen) days per year.
- 7.4.1. The Lessee assumes full material responsibility for the replacement vehicle during the period while the specific replacement vehicle is at the Lessee’s disposal. All provisions of this Agreement shall apply to the use of the replacement vehicle.
8. TERM OF THE AGREEMENT AND ITS EARLY TERMINATION
- 8.1. The Agreement shall enter into force at the time of its signing and shall be valid until the obligations specified in the Agreement are fully fulfilled.
- 8.2. The Agreement shall be deemed to have been executed when the Lessee has paid the Lessor all the Rental Fee due to it, as well as the calculated late payment interest, contractual penalties and other payments specified in the Agreement (if applicable) and has returned the Vehicle to the Lessor in a condition that complies with the terms of the Agreement.
- 8.3. The Lessee has the right to withdraw from the Agreement early during the entire term of the Agreement by giving the Lessor 30 (thirty) days’ prior written notice. In the event of such withdrawal, the Lessee shall pay the Lessor an early termination fee of 10% of the remaining rental payments under this Agreement, starting from the effective date of the withdrawal.
- 8.4. The Lessor has the right to unilaterally withdraw from the Agreement, by informing the Lessee in writing, if any of the following events occur:
- 8.4.1. The Lessee has fully or partially missed the Lease payment or other payment payment deadline specified in the Agreement for more than 10 (ten) business days in accordance with the Lessor’s invoice/notice;
- 8.4.2. The Vehicle has been stolen, hijacked, completely destroyed, cannot be found, has been confiscated, or its use rights have been restricted by third parties;
- 8.4.3. After concluding the Agreement, the Lessor discovers that the Lessee has provided false or incomplete information in the documents submitted to the Lessor and the provision/failure to provide such information has affected the Lessee’s performance of its obligations or the Lessor’s decision to lease the Vehicle to the Lessee;
- 8.4.4.The Lessee fails to comply or improperly complies with the requirements set out in the Agreement and the established violation has not been eliminated within 5 (five) business days from the Lessor’s sending a written warning or such violation has been committed repeatedly;
- 8.4.5. The Lessee has violated applicable laws and regulations, thereby creating a potential risk of causing losses to the Lessor in connection with the Vehicle.
- 8.4.6. After the occurrence of any of the circumstances referred to in paragraphs 2.2. – 2.6. of the Agreement, the Agreement shall be deemed terminated on the date when the Lessor has sent the Lessee a notice of termination of the Agreement.
- 8.4.7. If the Lessor unilaterally withdraws from the Agreement before the due date in the cases specified in the Agreement:
- 8.4.7.1. The Lessor shall not return to the Lessee the Lease payments received from it and any other Lessee payments;
- 8.4.7.2. The Lessee shall immediately upon the Lessor’s first request hand over to the Lessor the Vehicle in full condition in accordance with this Agreement conditions;
- 8.4.7.3. The Lessee shall be calculated and shall pay the Rental Fee for the current period until the Vehicle is returned to the Lessor.
9. OTHER PROVISIONS
- 9.1. The provisions of the Agreement may be amended or supplemented only by written agreement of the Parties.
- 9.2. The Agreement shall be interpreted and all disputes between the Parties related to its execution shall be resolved in accordance with the laws and regulations in force in the Republic of Latvia.
- 9.3. Any dispute or claim arising from the Agreement, concerning it or its violation or invalidity, shall initially be resolved between the Parties. If the Parties are unable to reach an agreement, the dispute shall be finally resolved by the court of the Republic of Latvia according to jurisdiction, based on the laws and regulations of the Republic of Latvia.
- 9.4. The Lessee is informed that the rental car is transferred to the Lessee without a CASCO policy and the Lessee assumes full responsibility for the rental car during the paid rental period.
- 9.5. All notices of the Parties must be made in writing and sent to the other Party to the e-mail address specified in the Agreement.
- 9.6. The Lessee is informed that the Lessor is entitled to process the Lessee’s personal data in accordance with the Lessor’s Privacy Policy, which can be found on the Lessor’s website. The Lessee’s personal data is processed for the purpose of concluding and executing this Agreement, providing support in resolving issues related to the execution of the Agreement, as well as monitoring the use of the Vehicle, checking location data, if necessary, as well as for other purposes specified in the Lessor’s Privacy Policy. By concluding this Agreement, the Lessee confirms that he has read and is familiar with the Lessor’s Privacy Policy, is informed about his rights as a data subject, the categories of data processed by the Lessor, the basis and purpose, the possibilities of withdrawing the consent given and other provisions described therein. If the Vehicle is driven or used by another user, the Lessee is obliged to inform this user about the processing of personal data by the Lessor.
- 9.7. The Lessee is not entitled to fully or partially transfer the rights and obligations specified in the Agreement, as well as the claims arising from the Agreement, to third parties without the Lessor’s written consent.
- 9.8. In the event that any of the provisions of the Agreement becomes invalid or is declared invalid, this shall not invalidate the remaining provisions. An invalid provision of the Agreement may be replaced with new provisions that comply with the purpose and content of the Agreement.
- 9.9. The Agreement is signed in two copies, one of which is kept by the Lessor, and the other by the Lessee. Both copies of the Agreement have equal legal force.