Automobile rental contract using the services

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On this day…………..2017, in the city of Sofia, pursuant toArt.228,and in conjunction with the Liabilities and Contracts Act (LCA), by and between:
1. ...................., entered into the Companies Registry at the Registration Agency, UIC………….., with principle office and registered address: city of………….., represented by…………..,herein called LANDLORD, on the one hand


2. ………….. , entered into the Companies Registry at the Registration Agency, UIC………….., with principle office and registered address: city of………….., represented by..............., herein called TENANT, on the other hand

1. With the signing of this contract the LANDLORD and the LESSEE express their common will and good faith to observe the good morals and practices in arranging their rental relations.

Each of the parties declares that this contract shall arrange to the fullest degree and detail the rental relations and that the mutual interests of each one of them are well balanced.

2. The Contract herein shall be regarded as a RENTAL CONTRACT, through which the LANDLORD shall provide the TENANT a motor vehicle (MV), hereinafter called the “automobile“, for temporary and compensated use, and the LANDLORD shall also provide a driver to the TENANT to make transfers and trips with the rented automobile on the territory of the Republic of Bulgaria.


Art.1. (1) The LANDLORD shall provide for temporary use and against compensation, while the TENANT agrees to use the following automobile under the terms and conditions of the Rental Contract: MAKE: ......................., MODEL: ……………………,Reg. No. ............................., CHASSIS No. ................................, ENGINE No. ..........................., which automobile during the period of validity of this contract shall be operated by a driver - employee of the LANDLORD.

(2) The automobile shall be handed over by the LANDLORD to the TENANT in full repair, excellent operating and technical condition, corresponding to all traffic safety requirements and cleaned up. When handing over the automobile an acceptance-hand over certificate shall be signed between the parties where the condition of the automobile shall be recorded, its’ interior and exterior.

Art.2. (1) The TENANT undertakes to release the automobile provided it along with the staff, within the time limits and the terms of this contract, and to pay the LANDLORD the compensation for the time, during which it has used the automobile, in the manner, in the amount and within the deadlines, hereinafter specified.

(2) Upon the release and return of the automobile by the TENANT, an acceptance - hand over certificate shall be signed between the parties where the condition of the automobile, its interior and exterior appearance shall be recorded. If any missing items and/or damages to the interior or the exterior of the automobile become established, they shall be recorded in the certificate, while the TENANT shall owe their payment according to the up-to-date market prices.

Art.3. TENANT declares that it was informed by the LANDLORD that the automobile driver is employee in the company of the LANDLORD, and according to the Bulgarian legislation the driver shall be hired with working time of 8 (eight) hours per day. If the TENANT uses the services of the driver for a period longer than 8 hours per day, it shall owe additional compensation for overtime to the driver for each next hour after the eighth hour, which compensation has been set forth inArt.5, Par.5 of this contract.

Art.4. The parties agree that the place of keeping and storage of the automobile after the end of the working hours of the driver will be provided on a parking lot of the LESSOR.

Art.5(1) TENANT undertakes to pay a rent to the LANDLORD for the use of the automobile with the service of a driver in the amount of ................. (………………),VAT included, per day /24 hours/. The price under the previous sentence was determined for a limited mileage, which must not exceed 220 km. (two hundred and twenty kilometers) within 24 (twenty four) hours and service by a driver within 8 (eight) working hours.

(2) The price of the rent under Par.1 shall include the prices for:

- the use of the automobile within 24 hours;

- service by a driver within 8 (eight) working hours;

- fuel for the automobile;

- Third party liability insurance;

- comprehensive “Casco"insurance ;

- tax on the MV;

- valid fee for using the road infrastructure in the Republic of Bulgaria (vignette sticker)

- “Coverage against accidents of the automobile passengers“ insurance.

(3) The price shall not include parking fees.

(4) TENANT undertakes to immediately inform the LANDLORD, if it intends to use the automobile for a run longer than the kilometer limit determined under Art.5, Par.1, for which the LANDLORD must grant its express consent. In this case the TENANT shall owe additional fee to the LANDLORD amounting to EUR 0.50 (fifty euro-cents) for each kilometer run after the 180th km.

(5) If the TENANT has not informed the LANDLORD and/or has not received its consent under Art.5, Par.4 of this Contract, but nevertheless has exceeded the limit of kilometers agreed inArt.5, Par.1, it shall owe an additional fee amounting to EUR 1 (one euro) for each kilometer run in excess of 180 km.

(6) Upon exceeding the working hours of the driver, specified inArt.5, Par.1 of this contract, the TENANT shall pay an additional fee of EUR ........ for each extra hour started.

Art.6. (1) The full amount of the rent for the period, for which the automobile was rented, shall be paid in advance upon the signing of this contract.

(2) All remaining due amounts in excess of the rent, fees underArt.5, Pars.4, 5 and 6 of this contract and penalties, if any, shall be paid by the TENANT upon returning and releasing the automobile and its handing over to the LANDLORD or to a person authorized by it.

Art.7.(1)On the day of signing of this contract the TENANT shall pay the LANDLORDa warranty deposit amounting to EUR……………….. where this amount shall be subject to reimbursement after the expiration of the rental period or upon its termination.

(2) The receiving of deposit under Par.1 shall be a condition for the entry of this contract into force. If the TENANT fails to pay the deposit within the agreed time limit, then this contract shall not lead to any legal consequences and the LANDLORD shall be free to dispose with the automobile as it sees fit.

Art.8.(1)After the expiration of the period of this contract, or upon its termination, the warranty deposit may be used by the LANDLORD for compensation of incurred damages to the automobile if the same have not been covered by the TENANT.

(2) After all expenses have been deducted from the deposit, the LANDLORD undertakes, within 5 (five) business days as of the expiration of the period of this contract, or after its termination, to return the remainder of the deposit to the TENANT while providing the necessary documents certifying the payments made on the removal of the caused damages.

(3) If the warranty deposit is not sufficient to cover the relevant expenses for the removal of the damages, the TENANT undertakes to pay the due amount to the LANDLORD on its bank account within 3 (three) business days as of the date, on which the TENANT was informed by the LANDLORD in writing about the exact due amount.
Art.9. (1) This contract shall be signed for the time period between .............../...............hours until ............................/.....................hours.

(2) This Contract shall enter into force at the time of payment of the agreed rent and the warranty deposit, and shall be valid for the agreed period of time.

(3) Extension of the period underPar.1 shall be possible only and solely with the express written consent of the LANDLORD, where if it becomes necessary for the TENANT to extend the rental period, it undertakes to inform the LANDLORD thereof no later than 24 (twenty four hours) before the expiration of the agreed date and time for returning the automobile. If an agreement is reached for extending the rental period for the automobile, the TENANT undertakes to pay the owed price for that period, with which the renting is extended, in advance.

Art.10. TENANT undertakes to pay the full amount of the rent and the warranty deposit on time and in the agreed manner, as well as all additional fees, which have been incurred in connection with the use of the automobile and the services of a driver under the terms of Art.5, Pars.4, 5 and 6 of this Contract.

Art.11. The TENAN Tunder takes, while using the automobile, to take care of it as a good businessman, and after the expiration of the rental period, to return the automobile in the condition, in which it was handed over to it.

Art.12. The TENANT shall not be entitled to sublet the motor vehicle without the express written consent of the LANDLORD.

Art.13. The TENANT shall be entitled:

(а) To use the automobile according to its purpose and the agreed terms in this Contract;

(b) To perform transportation activity with the automobile corresponding to its purpose and solely and only for its needs.

Art.14 The LANDLORD shall be entitled to:

(а) promptly receive the rent agreed in this contract for the use of the automobile and the service by a driver, as well as the warranty deposit underArt.7, Par.1.

(b) check whether the rented automobile is used according to the purpose of this contract without disturbing the TENANT.

Art.15 The LANDLORD must:

(а) provide the automobile described in Art.1 of this Contract in good operating and technical condition, cleaned up, along with all accessories pertaining to it.

(b) provide a driver legally authorized to operate, who will operate the automobile while observing all rules and norms of the road traffic according the the Road Traffic Act so as not to threaten the health and life of the TENANT.

(c) provide the peaceful use of the rented automobile by the TENANT for the period of validity of this Contract.


Art.16. If the TENANT fails to pay the incurred additional fees within the agreed time limit under the terms ofArt.5, Pars.4, 5 and 6 of this Contract, it shall owe a penalty in the amount of 10 % of the amounts owed by it, calculated for each day of delay until they are paid.

Art.17. In the case of premature termination of the rental contract by request of the TENANT, the LANDLORD shall be entitled to keep all amounts paid in advance and received by it, and it shall also be entitled to receive the accrued additional fees, which have occurred under the hypothesis of Art.5, Pars.4, 5 and 6 of this Contract.

Art.18. This Contract shall be terminated in the following cases:

(а) with the expiration of the Contract period, specified inArt. 9, Par.1 of this Contract.

(b) upon the mutual consent between the parties expressed in writing, and upon arranging all financial issues related to the use of the automobile.

(c) Prematurely by the LANDLORD, if the automobile is not used according to its purpose in violation of this contract.


Art.19. With the signing of this Contract the TENANT agrees its personal data to be used pursuant to Art.19, Par.1 of the Personal Data Protection Act(PDPA), while the LANDLORD guarantees that it shall not use this personal data for purposes other than the agreed.

Art.20 All disputes, which have occurred between the parties in connection with this contract, shall be arranged by agreement, and should no agreement be reached - by the competent court.

Art.21. For all issues not arranged by this contract the regulations of the LCA shall apply.

This Contract was signed in two identical counterparts - one for each of the parties.

For the LANDLORD: For the TENANT:

.................................................. ..................................................

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