Rental Agreement Terms and Conditions


  1. Definitions. “Agreement” means all terms and conditions found in this form, and on the document titled Face Page.  “You” or “your” means the person identified as the renter in this Agreement, each person signing this Agreement, each Authorized Driver and each person or organization to whom charges are billed by us at its or the renter’s direction.  All persons referred to as “you” or “your” are jointly and severally bound by this Agreement, including all payment obligations.  We”, “our” or “us” means the Rent-A-Wreck car and truck rental independent franchisee named on the Face Page in this Agreement that is renting the Vehicle to you.  “Authorized Driver” means (a) the renter and the renter’s spouse; (b) additional drivers listed by us in this Agreement; (c) if the renter is a business entity Authorized Driver includes renter employees who are permissible drivers on the business entity’s auto insurance policy; (d) the renter’s employer, employee or coworker and engaged in a business activity with the renter; and (e) a person who operates the Vehicle: (i) while parking it at a commercial establishment, or (ii) in an emergency.  Each Authorized Driver must be at least age 21 and hold a valid driver’s license.  Only Authorized Drivers are permitted to operate the Vehicle. “Vehicle” means the automobile or truck identified in this Agreement and each vehicle we substitute for it, and all its tires, tools, accessories, equipment, keys and Vehicle documents.  The Vehicle may be equipped with a tracking device that may use cellular telephone or radio signals to transmit data, and therefore your privacy cannot be guaranteed.  “CDW” means Collision Damage Waiver.  “Loss of Use” means the loss of our ability to use the Vehicle for any purpose due to damage to it or loss of it during this rental, including uses other than for rental, such as display for rent, display for sale, opportunity to upgrade, opportunity to sell, or transportation of employees.  Damages for Loss of Use are often difficult to determine with precision.  Therefore, you and we agree that Loss of Use will be calculated by multiplying the number of days from the date the Vehicle is damaged until it is replaced or repaired times 80% of the daily rental rate. You and we agree this formula represents a reasonable estimate of actual damages and not a penalty. “Diminished Value” means the difference between the actual cash value of the Vehicle before damage or loss and its value after repairs and is calculated by subtracting the value of the Vehicle after repair or replacement from the actual cash value of the Vehicle just prior to damage or loss. “Vehicle License Fee” means the estimated average per day per vehicle portion of our total annual titling and registration costs.


  1. Rental, Indemnity and Warranties. This is a contract for rental of the Vehicle.  We may repossess the Vehicle at your expense without notice to you, if the Vehicle is abandoned or used in violation of law or this Agreement.  If you breach this Agreement we have the right to disable the Vehicle through a tracking device.  You agree to indemnify us, defend us and hold us harmless from all claims, liability, costs and attorney fees we incur resulting from or arising out of this rental and your use of the Vehicle.  We make no warranties, express, implied or apparent, regarding the Vehicle, no warranty of merchantability and no warranty that the Vehicle is fit for a particular purpose.


  1. Condition and Return of Vehicle. You must return the Vehicle to our rental office or other location we specify, on the date and time specified in this Agreement (or sooner upon our oral or written demand) and in the same condition that you received it except for ordinary wear. Our written demand to you will be deemed delivered to you 2 business days after being placed in the mail by Certified Mail addressed to you at the address on the Face Page.  If the location permits after hours rental returns, time & mileage charges and optional service charges will continue to accrue on vehicles that utilize our courtesy drop off process until our next opening for business. If the Vehicle is returned after closing hours, you remain responsible for the loss of it and all damage to it until we inspect it upon our next opening for business. Service to the Vehicle or replacement of parts or accessories during the rental must have our prior approval, and you assume full responsibility for expenses due to Vehicle breakdown that you incur without our prior approval.  You must check and maintain all fluid levels and return the Vehicle with at least the same amount of fuel as when rented, unless you purchase the pre-paid fuel option.


  1. Responsibility for Damage or Loss; Reporting to Police; Responsibility for Tolls and Traffic Violations. You are responsible for all damage to, or loss or theft of, the Vehicle, including damage caused by vandalism, weather, road conditions and acts of nature, whether or not you are at fault.  You are responsible for: (a) the cost of repair of the Vehicle; or (b) if the Vehicle is not repairable, or if we elect not to repair it, the actual cash retail value of the Vehicle on the date of the loss less salvage.  You are also responsible for Loss of Use, Diminished Value, appraisal fees, towing, impound and storage costs, and our administrative expenses.  You must report all accidents or incidents of theft and vandalism to us and the police as soon as you discover them.  You are responsible for paying the charging authorities directly all tolls (“Tolls), fines for toll evasion, parking citations, and other fines, fees and penalties (“Infractions”) assessed against us or the Vehicle during this rental.  If charging authorities notify us that we may be responsible for payment of a Toll or Infraction, you will pay us or a processing firm of our choosing, an administrative fee of up to $45 for EACH Infraction or Toll incurred during the term of this rental. If we or the processing firm pay any Tolls or Infractions, you authorize us and the processing firm to charge all payments and processing fees to the payment cards you used to pay for this rental.


  • Prohibited Uses. The following uses of the Vehicle are prohibited and constitute breaches of this Agreement.  The Vehicle shall not be used: (a) by anyone who is not an Authorized Driver or not licensed to drive, or by anyone whose driving license is suspended; (b) by anyone under the influence of alcohol, prescription or non-prescription drugs; (c) by anyone who obtained the Vehicle or extended the rental period by giving Us false, fraudulent or misleading information; (d) under circumstances that could be properly charged as a crime other than a minor traffic violation; (e) carrying dangerous or hazardous items or illegal materiel; (f) to carry persons or property for hire; (g) to push or tow anything; (h) in a race or speed contest; (i) to transport more persons than the Vehicle has seat belts, to carry persons outside the passenger compartment, or to transport children without approved child safety seats as required by federal and state law; (j) to teach anyone to drive; (k) outside the continental United States without our prior written permission; (l) with inadequately secured cargo; (m) on an unpaved surface; (n) when the odometer has been tampered with or disconnected; (o) when it is reasonable to expect You to know that further operation of the Vehicle would damage it; (p) where applicable, by anyone who lacks experience driving a vehicle equipped with manual transmission; (q) to transport an animal; (r) in or through a structure of an underpass or other object where there is insufficient clearance (width or height).  Removing a tracking device from the Vehicle is also a breach of this Agreement. 


  1. Collision Damage Waiver. If you purchase CDW, we waive your responsibility for all or a portion of damage to or loss of the Vehicle as noted on the Face Page. CDW does not apply to loss or damage due to theft or to portable devices we rent to you for use in the Vehicle such as navigation aids and child safety seats.  If you use the Vehicle for a prohibited use described in Paragraph 5, your CDW will be void, and we will not waive your responsibility for damage to or loss of the Vehicle.


  1. Injury to Others; Insurance. You are responsible for all injury, damage and loss you cause to others. You agree to provide liability, collision and comprehensive insurance covering you, us, and the Vehicle.  Where state law requires us to provide auto liability insurance, or if you have no auto liability insurance, we provide auto liability insurance (the “Policy”) that is excess to all other valid and collectible insurance whether primary, secondary, excess or contingent.  The Policy provides bodily injury and property damage liability coverage with limits no higher than minimum levels prescribed by the vehicular financial responsibility laws of the State whose laws apply to the loss.  You and we reject PIP, medical payments, no-fault, uninsured and under-insured motorist coverage and other optional protection, where permitted by law.  To the extent such protection is imposed by operation of law, that protection will be for the minimum limits required by applicable law. The Policy is void if you give the Vehicle to an unauthorized driver; if you otherwise materially breach this Agreement; or if you fail to cooperate in a loss investigation conducted by us or our insurer.


  1. Charges. You permit us to reserve against your payment card (“Reserve”) or to take a cash deposit (“Deposit”) at the time of rental a reasonable amount in addition to the estimated charges.  We may use the Reserve or Deposit to pay all amounts owed to us under this Agreement.  You will pay us at or before the conclusion of this rental or on demand all charges noted on the Face Page of this Agreement, plus:  (a) a mileage charge based on our experience if the odometer is tampered with or disconnected; (b) fuel and a refueling charge, if you return the Vehicle with less fuel than when rented (and you do not purchase the prepaid fuel option); (c) all expenses we incur recovering the Vehicle, if it is not returned as promised; (d) all costs, including pre- and post-judgment attorney fees, we incur collecting payment from you or otherwise enforcing or defending our rights under this Agreement; (e) a 2% per month late payment fee, or the maximum amount allowed by law, on all past-due amounts; (f) $50 or the maximum amount permitted by law, whichever is greater, if you pay us with a check returned unpaid for any reason; (g) a reasonable fee not to exceed $350 to clean the Vehicle if returned substantially less clean than when rented; and (h) a fee of $100 if you permit the Vehicle to be used or operated by an unauthorized driver.  All charges are subject to our final audit. If errors in computation of the charges are discovered after the close of this transaction, you authorize us to correct the charges with the issuer of the payment card used for this rental.


  1. Your Property. You release us, our agents and employees from all claims for loss of and damage to your personal property or that of another person, that we received, handled or stored, or that was left or carried in or on the Vehicle or in a service vehicle or in our offices, whether or not the loss or damage was caused by our negligence or was otherwise our responsibility.  We will have a lien on all such personal property to secure all charges, fees, and expenses incurred by you.


  1. Modifications. This Agreement constitutes the entire agreement between you and us.  All prior representations and agreements between you and us regarding this rental are void.  No term of this Agreement can be waived or modified except by a writing that we have signed.  If you wish to extend the rental period, you must obtain our permission before the Due-In Date; at our option, we may require you to return the Vehicle to our rental office for inspection.


  1. Miscellaneous. A waiver by us of a breach of this Agreement is not a waiver of an additional breach or waiver of the performance of your obligations under this Agreement.  Our acceptance of payment from you or our failure, refusal or neglect to exercise of our rights under this Agreement does not constitute a waiver of any other provision of this Agreement.  Unless prohibited by law, you release us from all liability for consequential, special or punitive damages in connection with this rental or the reservation of a vehicle.  You waive all recourse against us for criminal reports or prosecutions or other actions described in this Agreement that we take against you as a result of your breach of this Agreement.  If a provision of this Agreement is deemed void or unenforceable, the remaining provisions are valid and enforceable. By entering into this Rental Agreement, you consent (the “Consent”) to the use of electronic records (“Electronic Records”) by us to contract with you. Electronic Records may include your digital signature. We will provide you with a paper copy of the Rental Agreement, at the time of rental.  You agree that we may disclose personally identifiable information about you to applicable law enforcement agencies or to other third parties in connection with our enforcement of our rights under this Agreement.  Questions regarding privacy should be directed to the location where you rented the Vehicle.



© 2012 LaPlaca Pujo, PC, Rockville, MD                                                                                                                                                                             RAW Generic 120412