The Owner (Lessor) described overleaf hereby leases to the Lessee, whom has signed for receiving the vehicle described overleaf, subject to all terms and provisions stipulated overleaf and herein on this lease contract as follows;
1. The Lessee hereby declares that he has conducted a survey on the leased Vehicle in such a manner that precludes any unawareness and accordingly has found it to be in a good condition, free of any defects and compatible with his requirements and that he has no right thereafter to claim the Lessor for any defects after receipt thereof including concealed defects.
2. The Lessee undertakes not to fail or delay to make any due payment to the Lessor, and in case of any delay exceeding 3 days from the due date, the Lessee shall pay a delay penalty of 2% of the total due amounts, without prejudice to the Lessor's right to recover the Vehicle and to detain it and in this case the Lessee shall be considered an illegal possessor to the said vehicle. The Lessor reserves the right to file a breach of trust case in accordance with article 240 of the Kuwaiti Penal Code.
3. The Lessor shall provide a comprehensive insurance for the Vehicle/s covered by this contract at a licensed insurance company in the State of Kuwait. The Lessee declares his review, knowledge and acceptance of all the terms and exceptions stipulated in the insurance policy, including but not limited to:
In case of accident, the Lessee must submit a traffic accident report and a valid repair permit issued by the concerned Kuwaiti authorities. The report must be enclosed with a copy of the driving license of the driver involved in the accident and a copy of his/her civil ID or passport. If the accident report is not submitted with all related documents, the Lessee shall bear all damages and breakdown charges.
The Lessee shall bear the deductibles stipulated in the insurance policy and in accordance with the terms therein, in particular 25% of the repair cost in case of partial accidents, registered in absentia or in the absence of a third party.
4. The Lessee undertakes to deliver the Vehicle to the Lessor at least 3 days before the expiry of the registration papers of the Vehicle, to enable the Lessor to renew the required licenses from the Traffic Department. In case the Lessee fails/delays such delivery, then the latter will solely be held responsible for any traffic violations or delay penalties towards the Lessor or compensations awarded for third parties, as well as any other damages or costs incurred by the Lessor, including the insurance company’s refusal of the claim due to the nonrenewal of the Vehicle registration papers.
5. The Lessee shall bear all fines, direct and indirect penalties that may be imposed by the traffic law, regulations, penal provisions and any other relevant or applicable laws and run-over accidents as a result of using the Vehicle, during the period of this contract or any renewed periods thereafter, whether such accidents became known during this contract or after its expiry. In the event of failing to pay the Traffic Fines, which occurred during the period of this Contract, the Lessee agrees that the Lessor has all the rights to recover the said cost either by directly charging such amounts to his/her Credit Card or by transferring the Traffic Fines to his/her personal file with the Traffic Department. Also the Lessee agrees to pay KD 10 in case he lost the Vehicle’s registration book.
6. The Lessee shall be held fully responsible for the driver/s of the leased Vehicle subject of this contract, and shall not allow any person not holding a valid Kuwaiti driving license to drive the Vehicle. The Lessee will be jointly responsible for the acts of his subordinates, partners, and also for the safeguarding and the custody of the Vehicle in his capacity as a lessee, and shall ensure to return it in the same condition as when received.
7. The Lessor agreed to carry out the periodic maintenance, basic service, normal survey and scheduled maintenance appointments as mentioned in the manual of the Vehicle and as certified by the manufacturer of the same, provided that the Lessee must bring the Vehicle to the Lessor's location at the specified maintenance dates specified in article 8.
8. The Lessee undertakes to comply with the maintenance schedules for the Vehicle regularly at every 5000 KM, and at any time requested by the Lessor until the expiry of this lease contract, and in case he/she fails to comply with this schedule then he/she will bear the following charges:
KD 25/- (Twenty Five Kuwaiti Dinars) for every extra 500 Kilometer up to 1500 KM over the limit stipulated in the aforesaid maintenance program.
KD 35/- (Thirty Five Kuwaiti Dinars) forevery extra 1500KM up to 2500 KM over the limit stipulated in the aforesaid maintenance program.
KD 50/- (Fifty Kuwaiti Dinars) for every extra 2500Km up to 5000 KM over the limit stipulated in the aforesaid maintenance program. In this case, the Lessor shall be entitled to retrieve the Vehicle and to consider the contract to be automatically terminated.
9. The Lessor shall not bear any responsibility for any items left in Vehicle upon return by the Lessee for the purpose of regular maintenance or at the end of the lease contract
10. The Lessee agrees never to use the vehicle for Transporting items or goods for commercial purposes, speed racing, driving on unpaved roads and/or using the Vehicle for any purpose it has not been licensed for.
11. The replacement vehicle may not be of the same kind, model, specifications or year model of the Vehicle subject to this contract, and the Lessee will not have the right to refuse such replacement. Moreover, the Lessee admits his/her acceptance to the replacement vehicle as a substitute for the original one.
12. The Lessee must repair the Vehicle at the Lessor’s designated garage/s only.
13. The Lessee shall be responsible for all charges of damages or breakdowns repairs resulting from the Lessee's misuse or negligence or non-compliance with the regular maintenance schedule or violation of the Vehicle driving conditions as stipulated in the traffic law and its implementation regulations.
14. Lessor undertakes to provide a Vehicle as a substitute in the following cases:
In case of accidents, provided that the Lessee must submit a valid traffic accident report and repair permit issued by the Kuwaiti Authorities.
If the periodic maintenance of the Vehicle exceeds three hours from the time the Vehicle is submitted at the Lessor’s yard.
In case of receiving the Vehicle for completing the technical inspection procedures and license renewal.
15. The Second Party (Lessee) acknowledges that he is holding a valid international driving license or a valid driving license issued from the competent authority in his home country, moreover he acknowledges that his driving license is properly insured at …………… a licensed insurance company in Kuwait under insurance policy No.______ covering the period from ______ to _______ and he undertake to renew it whenever he renews this contract.
16. The Second Party (Lessee) shall adhere to all the terms and conditions stated in Article 105 of the executive regulations of the Traffic Law No. 67 for the year 1976 and Article 15 of the same law.
17. The Second Party (Lessee) under takes to keep his entry permit to Kuwait valid whether his permit is for visit, tourism or crossing throughout the term of this Contract. Upon the expiry of the Second Party’s (Lessee) entry permit to Kuwait or transferring the same to a residency permit or the expiry of his driving license or insurance policy then this Contract shall be deemed to be terminated without any prior notice or referring the same to court and upon the occurrence of such incident the Second Party (Lessee) shall promptly re-deliver the leased vehicle to the First Party (Lessor) and shall bear all civil and penal responsibilities resulting from his violation to such obligation in accordance with the Traffic Law No. 67 for the year 1976, its executive regulations and any other applicable law in this regard
18. Both Parties agreed that all terms and conditions for this contract shall extend to cover any other car delivered to the Second Party as a permanent or temporary replacement; an annex shall be added to this Contract specifying the alternative car/s. The Second Party undertakes to return the replacement car/s as soon as the First Party informs him (with any form of notification) that the original car is ready, and in case he didn't return the replacement car on time he will be obliged to pay KD 25/- as an agreed fine for every delaying day against this car plus the rental charge for the car leased under this contract.
19. The lessee shall pay the Lessor KD 25/- for each additional driver he desires to add under this contract and throughout its initial term or renewed term/s.
20. Lessee shall not allow any other person not entitled to, under this Contract to drive the leased vehicle. Lessee will bear all cost and charges of all damages incurred as a result of unauthorized person/s driving the leased vehicle.
21. This contract shall be subject to the laws of the State of Kuwait. Any dispute arising out of this contract shall be referred exclusively to the jurisdiction of the Kuwaiti Courts of Law.