The Car Sublease Agreement is essential when an existing vehicle lessee wishes to sublease their vehicle to another party in the UAE. This document becomes necessary in various scenarios, such as when companies need to reallocate leased vehicles, when individuals temporarily relocate, or when businesses want to optimize their fleet utilization. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code), UAE Federal Traffic Law, and relevant RTA regulations. It includes comprehensive details about the vehicle, parties involved, financial terms, maintenance responsibilities, and insurance requirements. The document ensures that all parties understand their rights and obligations while maintaining transparency in the sublease arrangement and adherence to UAE legal requirements.
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1. Parties: Identification of the Sublessor (original lessee) and Sublessee, including full legal names, Emirates ID numbers, and contact details
2. Background: Context of the sublease, including reference to the master lease and confirmation of right to sublease
3. Definitions: Definitions of key terms used throughout the agreement
4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, VIN, and registration details
5. Term and Delivery: Duration of sublease, commencement date, delivery arrangements, and condition inspection requirements
6. Rental Payments: Payment terms, amounts, due dates, security deposit details, and payment methods
7. Use of Vehicle: Permitted use, territorial limitations, and driving restrictions
8. Maintenance and Repairs: Responsibilities for vehicle maintenance, repair procedures, and cost allocation
9. Insurance Requirements: Mandatory insurance coverage, responsibility for insurance costs, and claims procedures
10. Liability and Indemnification: Allocation of risks, liability for damages, and indemnification obligations
11. Default and Remedies: Events of default, cure periods, and available remedies
12. Termination: Grounds for termination, notice requirements, and return conditions
13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
1. Sublessee Warranties: Additional warranties from sublessee regarding driving history and experience, used when sublessee is an individual
2. Assignment Rights: Rights to assign the sublease to another party, included for longer-term subleases
3. Mileage Restrictions: Specific mileage limitations and charges, included when required by master lease or sublessor preference
4. Modification Rights: Rights and restrictions regarding vehicle modifications, included for specialty or luxury vehicles
5. Cross-Border Travel: Provisions for GCC country travel, included when cross-border travel may be anticipated
6. Additional Drivers: Provisions for authorizing additional drivers, included when multiple drivers are anticipated
7. Early Termination Options: Specific provisions for early termination rights, included in longer-term subleases
1. Schedule 1 - Vehicle Condition Report: Detailed inspection report documenting vehicle condition at delivery
2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including rental payments, deposits, and other charges
3. Schedule 3 - Insurance Specifications: Detailed insurance requirements and coverage specifications
4. Schedule 4 - Maintenance Schedule: Required maintenance schedule and procedures
5. Appendix A - Copy of Master Lease: Copy of relevant sections of the master lease agreement
6. Appendix B - Vehicle Registration and Documentation: Copies of vehicle registration and other relevant documentation
7. Appendix C - Authorized Drivers List: List of authorized drivers and their license details
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