Any rental agreement is potentially a contract of lease between two
parties. In such a case, there is a lessor and a lessee. As per common
contract law, which is almost universal in nature:
A lessor is chiefly a person who owns an asset and rents it out against money to the lessee. A lessor is often known as a landlord, in real estate renting transactions.
A lessee, on the other hand, is a person who rents the asset for use, by paying the lessor or the owner (or the landlord) an agreed sum of money.
Potentially any material or an asset can be leased or rented out. Out of all the assets, car, automobiles such as trucks or earth moving machines, land or other similar real estate are rented or leased out. While leasing out assets a very important document is framed and signed by both the parties. Such a document is known as the 'rental agreement' or the 'lease agreement'.
Legal Premise
In case of a car rental contract, if he lessee does not pay the rent on time or if the lessor does not give the car for usage, the contract has been breached, or has not been performed or has been dishonored or has not been seen through. Here the other party can sue the non performing (the other) party.
This agreement is usually put forth on paper, or is written and signed, as it provides the parties, the legal systems and courts substantial evidence, that such a contract had indeed come into being. The following are some of the common and essential elements of such an agreement.
The first clause of the agreement refers to the parties of the contract. Here the lessee and the lessor are defined and identified. Such a clause usually carries the address or any other prominent identifying facts with respect to the contract.
The second clause carries the details of the car/automobile. The common details such as the vehicle identification number and details of the car are mentioned in this clause. Such a clause is commonly referred to as an objective clause, here the total time period of the rental is also mentioned.
The third important clause is known as the consideration clause. In this clause, some important aspects regarding the rent payment, and deposit is mentioned.
The last clause is known as the remedy clause, here some mutually accepted remedies for loss incurring incidences are mentioned and accepted by both the parties. For example what would happen if the vehicle got into an accident. The remedy of such problems is discussed in such clauses.
The last clause is known as the signatory clause where the seal and signature of either parties, witnesses and also the notary public are put forth.
A lessor is chiefly a person who owns an asset and rents it out against money to the lessee. A lessor is often known as a landlord, in real estate renting transactions.
A lessee, on the other hand, is a person who rents the asset for use, by paying the lessor or the owner (or the landlord) an agreed sum of money.
Potentially any material or an asset can be leased or rented out. Out of all the assets, car, automobiles such as trucks or earth moving machines, land or other similar real estate are rented or leased out. While leasing out assets a very important document is framed and signed by both the parties. Such a document is known as the 'rental agreement' or the 'lease agreement'.
Legal Premise
In case of a car rental contract, if he lessee does not pay the rent on time or if the lessor does not give the car for usage, the contract has been breached, or has not been performed or has been dishonored or has not been seen through. Here the other party can sue the non performing (the other) party.
This agreement is usually put forth on paper, or is written and signed, as it provides the parties, the legal systems and courts substantial evidence, that such a contract had indeed come into being. The following are some of the common and essential elements of such an agreement.
The first clause of the agreement refers to the parties of the contract. Here the lessee and the lessor are defined and identified. Such a clause usually carries the address or any other prominent identifying facts with respect to the contract.
The second clause carries the details of the car/automobile. The common details such as the vehicle identification number and details of the car are mentioned in this clause. Such a clause is commonly referred to as an objective clause, here the total time period of the rental is also mentioned.
The third important clause is known as the consideration clause. In this clause, some important aspects regarding the rent payment, and deposit is mentioned.
The last clause is known as the remedy clause, here some mutually accepted remedies for loss incurring incidences are mentioned and accepted by both the parties. For example what would happen if the vehicle got into an accident. The remedy of such problems is discussed in such clauses.
The last clause is known as the signatory clause where the seal and signature of either parties, witnesses and also the notary public are put forth.
