Credit Hire Agreement Template

A credit hire agreement is a legally binding contract between a vehicle hire company and an individual who has been involved in a road traffic accident. This agreement outlines the terms and conditions governing the hiring of a replacement vehicle while the individual’s own vehicle is undergoing repairs. A well-crafted credit hire agreement template is essential for ensuring a smooth and efficient process for both parties.

Key Elements of a Credit Hire Agreement Template

A comprehensive credit hire agreement template should include the following key elements:

1. Parties Involved

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Hirer: The individual who has suffered loss of use of their vehicle due to an accident.

Hired Vehicle: The replacement vehicle provided by the hire company.

Hired Vehicle Details: Make, model, registration number, and other relevant specifications.

Hire Period: The duration of the hire period, which may be fixed or open-ended.

2. Hire Charges

Daily Rate: The daily rate charged for the hire of the vehicle.

Additional Charges: Any additional charges, such as VAT, insurance excess, or delivery and collection fees.

Payment Terms: The payment terms, including the due date for payment and any late payment fees.

3. Insurance and Liability

Insurance Coverage: Details of the insurance coverage provided by the hire company, including third-party liability and comprehensive cover.

Excess: The excess amount payable by the hirer in the event of an accident.

Liability: The liability of the hirer for damage to the hired vehicle and any other losses incurred by the hire company.

4. Conditions of Hire

Driver Eligibility: The eligibility criteria for drivers of the hired vehicle, including age restrictions and driving license requirements.

Vehicle Use: The permitted use of the hired vehicle, including restrictions on commercial use and towing.

Maintenance and Repairs: The responsibilities of the hirer for maintaining the hired vehicle and reporting any faults or damage.

Fuel: The responsibility for fuel costs, including any fuel included in the hire charge.

5. Termination of Hire

Early Termination: The conditions under which the hire agreement may be terminated early, such as the repair of the hirer’s vehicle or a change in circumstances.

Return of Vehicle: The procedures for returning the hired vehicle, including the required condition and any additional charges for late return.

6. Dispute Resolution

Dispute Resolution Procedure: The procedure for resolving any disputes arising from the hire agreement, including mediation or arbitration.

Governing Law: The governing law of the contract, which will determine the jurisdiction for any legal proceedings.

Designing a Professional Credit Hire Agreement Template

To create a professional credit hire agreement template, consider the following design elements:

Clear and Concise Language: Use clear and concise language to avoid confusion and ambiguity.

Professional Layout: Use a professional layout with clear headings and subheadings.

Consistent Formatting: Use consistent formatting throughout the document, including font size, font style, and line spacing.

Legible Font: Use a legible font, such as Arial or Times New Roman.

Adequate White Space: Use adequate white space to improve readability.

Professional Logo: Include a professional logo to enhance the credibility of the document.

Contact Information: Include the contact information of the hire company, including address, phone number, and email address.

By carefully considering these elements, you can create a professional credit hire agreement template that is both visually appealing and legally sound.