Car Rental Advance Payment Agreement
Car Rental Advance Payment Agreement
This Car Rental Advance Payment Agreement (the "Agreement") is made and entered into as of [Date], by and between [Your Company Name], with its principal place of business at [Your Company Address] (hereinafter referred to as the ("Car Rental Business"), and [Your Client Name], residing at [Your Client Address] (hereinafter referred to as the "Client").
WHEREAS, the Car Rental Business provides vehicle rental services and requires advance payments to secure reservations;
WHEREAS, the Client desires to rent a vehicle from the Car Rental Business and agrees to make an advance payment as a condition of reservation;
WHEREAS, both parties desire to establish the terms and conditions governing the acceptance, use, and refund policies of such advance payments;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Payment Agreement
This Agreement sets forth the terms and conditions governing the acceptance of advance payments by [Your Company Name] (hereinafter referred to as the "Car Rental Business") from [Your Client Name] (hereinafter referred to as the "Client") for vehicle rentals.
1.1. Advance Payment Amount
The Client agrees to remit an advance payment (the "Advance Payment") equivalent to 25% of the total rental fee as stipulated in the rental agreement. For example, if the total rental fee for the selected vehicle and rental period amounts to $800, the Advance Payment required will be $200. The specific amount of the Advance Payment shall be calculated and communicated to the Client at the time of reservation, taking into account the agreed-upon rental terms and conditions.
1.2. Payment Due Date
The Advance Payment is due in full at the time of reservation and must be received by the Car Rental Business no later than the specified due date provided in the reservation confirmation. The failure to remit the Advance Payment by the due date may result in the automatic cancellation of the reservation at the discretion of the Car Rental Business. The Car Rental Business reserves the right to allocate the reserved vehicle to another client if the Advance Payment is not received by the specified due date.
2. Obligations and Responsibilities
2.1. Car Rental Business Obligations
The Car Rental Business undertakes the responsibility to reserve a specific vehicle for the Client upon receipt of the Advance Payment. Upon reservation confirmation, the Car Rental Business agrees to communicate detailed vehicle specifications, including make, model, and rental period, to the Client. It is further obligated to maintain the reserved vehicle in optimal working condition and ensure it complies with all safety and performance standards outlined in the rental agreement. The Car Rental Business commits to providing the vehicle to the Client in accordance with the agreed-upon terms, ensuring a seamless rental experience.
2.2. Client Obligations
The Client acknowledges and agrees to fulfill their obligation to remit the Advance Payment as outlined in this Agreement. Furthermore, the Client commits to complying with all terms and conditions stipulated herein. Additionally, the Client agrees to settle the remaining balance of the rental fee in full prior to vehicle pickup, or as per the terms specified in the rental agreement. Failure to meet these obligations may result in the Car Rental Business canceling the reservation and retaining the Advance Payment as liquidated damages.
3. Refund and Cancellation Policy
3.1. Non-Refundable Conditions
The Advance Payment is deemed non-refundable under specific circumstances, including but not limited to: (i) cancellation by the Client within 48 hours of the scheduled rental start date, or (ii) failure of the Client to appear for the rental on the scheduled start date (no-show). In such cases, the Car Rental Business reserves the right to retain the full Advance Payment as compensation for the lost opportunity to rent the vehicle to other potential clients.
3.2. Partial Refund Conditions
If the Client cancels the reservation more than 48 hours before the scheduled rental start date, the Car Rental Business may issue a partial refund amounting to 50% of the Advance Payment. Administrative fees or costs incurred in processing the refund, if any, may be deducted from the refunded amount at the discretion of the Car Rental Business. The Client must submit a written cancellation request to [Your Company Email] to initiate the refund process, after which confirmation of cancellation will be provided by the Car Rental Business.
4. Reservation Modifications and Cancellations
4.1. Modifications
The Client may request modifications to their reservation, such as changes to rental dates or vehicle type, subject to availability. Any additional charges resulting from such modifications, including but not limited to rental rate changes or fees for upgraded vehicles, shall be borne by the Client and must be paid at the time of modification.
4.2. Cancellations
Cancellations must be submitted in writing to [Your Company Email]. Upon receipt of a cancellation request, the Car Rental Business will confirm the cancellation and process any applicable refunds in accordance with the terms outlined in Section 3 of this Agreement.
5. Limitation of Liability
The Car Rental Business shall not be liable for any indirect, incidental, special, or consequential damages arising from or related to this Agreement, including but not limited to loss of profits, loss of business opportunity, or loss of use of the rented vehicle. The maximum liability of the Car Rental Business under this Agreement shall be limited to the amount of the Advance Payment received from the Client.
6. Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of [State/Country]. Any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, interpretation, breach, or termination, shall be resolved through arbitration in [City/State/Country], administered by the American Arbitration Association (or another recognized arbitration body), in accordance with its Commercial Arbitration Rules then in effect. The decision of the arbitrator(s) shall be final and binding upon both parties.
7. Entire Agreement
This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior discussions, negotiations, agreements, and understandings, whether written or oral, between the parties. No modification or amendment of this Agreement shall be effective unless in writing and signed by both parties.
IN WITNESS WHEREOF, the parties hereto have executed this Car Rental Advance Payment Agreement as of the day and year first above written.
[Your Company Name]
[Your Name]
[Your Job Title]
Date: [Date]
[Your Client Name]
Date: [Date]
