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draft a car sales agreement

Introduction

In Kenya, a car sales agreement is a legally binding document that outlines the terms and conditions of the sale of a vehicle between a seller and a buyer. This agreement ensures that both parties are clear on their obligations and rights, thereby minimizing potential disputes. The agreement should comply with the relevant laws and regulations in Kenya, including the Sale of Goods Act (Cap 31), the Consumer Protection Act, 2012, and other relevant statutes.

Table of Contents

  1. Parties Involved

  2. Vehicle Description

  3. Purchase Price and Payment Terms

  4. Delivery and Transfer of Ownership

  5. Warranties and Representations

  6. Conditions Precedent

  7. Default and Termination

  8. Governing Law

  9. Dispute Resolution

  10. Miscellaneous Provisions

  11. Signatures

1. Parties Involved

  • Seller:

    • Name: [Seller's Full Name]

    • Address: [Seller's Address]

    • National ID/Passport Number: [Seller's ID/Passport Number]

  • Buyer:

    • Name: [Buyer's Full Name]

    • Address: [Buyer's Address]

    • National ID/Passport Number: [Buyer's ID/Passport Number]

2. Vehicle Description

  • Make: [Vehicle Make]

  • Model: [Vehicle Model]

  • Year: [Year of Manufacture]

  • Color: [Vehicle Color]

  • Engine Number: [Engine Number]

  • Chassis Number: [Chassis Number]

  • Registration Number: [Registration Number]

  • Mileage: [Current Mileage]

3. Purchase Price and Payment Terms

  • Total Purchase Price: KES [Total Amount]

  • Deposit: KES [Deposit Amount] (if applicable)

  • Balance: KES [Balance Amount]

  • Payment Method: [Cash/Bank Transfer/Cheque]

  • Payment Schedule: [Details of Payment Schedule, if applicable]

4. Delivery and Transfer of Ownership

  • Delivery Date: [Date of Delivery]

  • Delivery Location: [Location of Delivery]

  • Transfer of Ownership: The seller agrees to transfer ownership of the vehicle to the buyer upon receipt of the full purchase price. The seller shall provide the buyer with all necessary documents, including:

    • Original Logbook

    • Transfer Forms (Form C)

    • Copy of National ID/Passport

    • KRA PIN Certificate

5. Warranties and Representations

  • Seller's Warranties:

    • The seller warrants that they are the legal owner of the vehicle.

    • The vehicle is free from any liens or encumbrances.

    • The vehicle has not been involved in any major accidents.

    • The vehicle is in good working condition, except as disclosed in this agreement.

  • Buyer's Warranties:

    • The buyer has inspected the vehicle and is satisfied with its condition.

    • The buyer has the financial capacity to complete the purchase.

6. Conditions Precedent

  • Inspection: The buyer may conduct a mechanical inspection of the vehicle before the final payment.

  • Financing: If the purchase is subject to financing, the buyer must secure financing before the delivery date.

7. Default and Termination

  • Default by Buyer: If the buyer fails to make the payment as agreed, the seller may terminate the agreement and retain the deposit as liquidated damages.

  • Default by Seller: If the seller fails to deliver the vehicle as agreed, the buyer may terminate the agreement and demand a refund of any payments made.

8. Governing Law

  • This agreement shall be governed by and construed in accordance with the laws of Kenya, including but not limited to:

    • Sale of Goods Act (Cap 31)

    • Consumer Protection Act, 2012

9. Dispute Resolution

  • Negotiation: The parties shall first attempt to resolve any disputes through good faith negotiations.

  • Mediation/Arbitration: If negotiations fail, the parties agree to submit the dispute to mediation or arbitration in accordance with the Arbitration Act (Cap 49).

  • Court: If mediation or arbitration fails, either party may seek redress in a court of competent jurisdiction in Kenya.

10. Miscellaneous Provisions

  • Entire Agreement: This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements.

  • Amendments: Any amendments to this agreement must be in writing and signed by both parties.

  • Severability: If any provision of this agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

  • Notices: Any notices required under this agreement shall be in writing and delivered to the addresses provided above.

11. Signatures

  • Seller:

    • Signature: ___________________________

    • Name: [Seller's Full Name]

    • Date: [Date]

  • Buyer:

    • Signature: ___________________________

    • Name: [Buyer's Full Name]

    • Date: [Date]

Conclusion

A well-drafted car sales agreement is essential to ensure that both the seller and the buyer are protected and clear on their obligations. This template provides a comprehensive framework that can be customized to fit specific needs. Always consider consulting a legal professional to review the agreement to ensure compliance with Kenyan laws and regulations.

Answered by mwakili.com