- Term: This contract is effective beginning on ____________________ and will terminate upon receiving written notice by Consignor. Upon receiving written notice by Consignor Horn Auto and RV Sales Inc. will cease all future bookings of the vehicle and will maintain possession of the vehicle until all existing rentals for the unit are completed.
- Exclusive Use: The vehicle shall be used for the sole purpose of renting the vehicle to third parties during the term of this contract. Horn Auto and RV Sales, Inc is specifically excluded from any negotiations or transactions concerning the sale of the vehicle, this is not a consignment for sale agreement. Horn Auto and RV Sales, Inc is not the Consignor’s agent for any purpose and Consignor has not authorized Horn Auto and RV Sales, Inc to take any act or commit Consignor to any obligation other than those specifically stated herein.
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Control: Horn Auto and RV Sales, Inc. shall be in complete control of the vehicle. Horn Auto and RV Sales, Inc. shall reasonable use it’s control to advertise for rent, rent and take all reasonable, appropriate, and necessary actions pertaining to the rental, and obtaining renter’s insurance for such rentals and the clean and maintain the motorhome.
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Compensation to Consignor: Consignor shall receive one half of the income (50%) received from the daily/weekly/monthly rental of the vehicle and 50% of all monies collected for mileage and generator use. These monies shall be paid monthly to Consignor within 30 days of the end of the month for the previous month’s rentals. This timeframe is necessary to fully close out all rentals and collect all monies from the renters, allow time for credit card payments, to resolve any issues, to ensure there is no bad debt and to run other aspects of our business. As used in this contract, “income” shall not include monies collected for insurance, accessories charges, sanitizing fees, administrative fees, and other comparable fees charged by Horn Auto and RV Sales, Inc to third party renters.
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Maintenance: The parties agree that the vehicle shall be maintained as follows:
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At the delivery of the vehicle to Horn Auto and RV Sales, Inc the vehicle is in the conditions as stated on the Checkout form (Schedule A) which may include an inspection by a mechanic licensed by the State of California. If completed the inspection record will be attached. If inspection is done the costs are the responsibility of the owner.
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Consignor hereby authorizes, Horn Auto and RV Sales, Inc without further written or verbal authorization from Consignor to 1. Make emergency repairs which are the responsibility of the Consignor, and 2. Authorize and make necessary repairs which are the responsibility of the Consignor whether or not such repairs are covered by a warranty or maintenance agreement. 3. Perform necessary maintenance of the motor home as suggested by the manufacturer or specified by the consignor (oil changes, lube, roof caulking and other necessary items of maintenance.) Horn Auto and RV Sales, Inc shall notify Consignor of such repairs as soon as possible or with the following monthly statement. If there are not sufficient funds in the account (Consignor’s) to pay for the repairs, Consignor agrees to pay Horn Auto and RV Sales, Inc upon demand for any repairs completed thirty (30) days after presentation of the billing by Horn Auto and RV Sales, Inc.
- Consignor shall also be responsible for replacement of the interior furnishings and the engine and or transmission for the vehicle, which may be required due to more than normal wear and tear based upon frequent use as a rental vehicle. Upon request by Consignor Horn Auto and RV Sales, Inc will arrange to have the exterior of the vehicle waxed at Consignor’s sole cost and expense.
- Consignor understands that excessive required repairs with “problem” vehicles may require a maintenance reserve be held not to exceed $750.00 to repair items that may be the expense of the owner. The balance of this reserve will be forwarded to the Consignor no later than 30 days for the date of delivery of the motor home to the Consignor and termination of this contract
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Damage to Vehicle and other’s insurance
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During the term of this contract Consignor must have vehicle insured under the commercial rental policy provided by MBA Insurance. This insurance is deducted from the owner’s income statement and the costs are the sole responsibility of the owner of the vehicle. It is the understanding of Horn Auto and RV Sales, Inc that owners can elect to cancel their private insurance policy and are covered by the commercial policy when they use the vehicle however it should be noted that this commercial policy may be different and provide different coverages than a private motorhome policy. Coverages may be less, premiums may be higher, deductibles may be higher, and payout in the event of a total loss would be at the “actual cash value.” This can often be less than an owner actually owes on their vehicle and gap insurance is not available for rental units. In the event owners elect to keep their private policies in conjunction with the commercial policy their policy only covers them when they are driving the vehicle personally, not while under rental. Only in the event of a “total loss” would the “actual cash value” come in to effect. Each renter is required to provide a binder when they rent a vehicle. In the event their insurance company will not provide a binder they are required to pay and be added to the commercial policy for the period of their rental. Horn Auto and RV Sales, Inc requires each renter provide a security deposit at least in the amount of $500 which covers the deductible in the event of an accident or damage is caused to the vehicle. Any claims are handled by Horn Auto and RV Sales, Inc when a renter is involved and Horn Auto and RV Sales, Inc arranges for all repairs to get the unit back in to service as quickly as possible.
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Horn Auto and RV Sales, Inc will return the vehicle to the Consignor in the same condition as received less wear and tear due to rental use.
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Consignor accepts more than normal wear and tear on the vehicle based upon frequent use as a rental vehicle and not use as a personal vehicle
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Horn Auto and RV Sales, Inc will collect and use deposits from renters for any abusive damage to the vehicle and ensure repairs are complete
- Use by Consignor:
- During the term of the contract Consignor may use the vehicle at their request. Owners are required to contact Horn Auto and RV Sales, Inc to make a reservation for their vehicle and the vehicle may not be available due to a confirmed reservation. Horn Auto and RV Sales, Inc currently will not dictate when or how many nights you can use your own vehicle however it should be noted that using your vehicle during the holidays and summer months will greatly decrease yours and our rental income. We rely and operate our business based on renting your vehicle and handle all overhead costs associated with running this business on rental revenue so if the unit is not available during peak times amendments may need to be made to this contract.
- After your use you must return the vehicle in “rental ready” condition to Horn Auto and RV Sales, Inc, clean inside and out, gasoline and propane tanks filled to the same level as received and all holding tanks empty. Please do not be our worst renters! In the event you do not perform these items your account will be charged to have these items done for you at full retail rates. We are here for our customers.
- A deposit may be charged to the Consignor to bring the account current if the Consignors account is at a negative or to secure Horn Auto and RV Sales, Inc for future rentals in the event that the motorhome is not returned to Horn Auto and RV Sales, Inc per the owners “Use Agreement.”
- Horn Auto and RV Sales, Inc may deny possession or use by the Consignor if the Consignor’s account with Horn Auto and RV Sales, Inc is not brought current.
- “Use” extends to the Consignor removing the vehicle from Horn Auto and RV Sales, Inc
Payments to Lien Holders:
During the term of this contract, Consignor shall pay, when due, all payments to lenders and others whose loans or other monies are secured by this vehicle. Consignor shall notify Horn Auto and RV Sales, Inc within fifteen (15) days of receipt by Consignor of any notice of default in payment and any notice of intent to repossess the vehicle.
- Early Termination:
The length of the term of this contract is a material part of this contract and a material reason for Horn Auto and RV Sales, Inc entering in to this contract, however this contract shall be terminated prior under the following circumstances.
- Upon written notice, with the Consignor agreeing to fulfill any rentals already on the books for this unit.
- By Horn Auto and RV Sales, Inc for any reason at all upon thirty days written or verbal notice to Consignor or
- Upon termination of Consignor’s ownership interest after repossession or seizure of the vehicle for any reason.
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Termination Upon Repossession:
If the vehicle is repossessed or otherwise seized during the term of this contract this contact will be terminated as of the date of seizure. The length of this contract is a material part of this contract and a material reason for Horn Auto and RV Sales, Inc entering in to this contract. In the event of termination under this paragraph then the parties agree that Horn Auto and RV Sales Inc. shall retain as liquidated damages for the early termination all monies due to Consignor under the terms of this contract as of the date of repossession or seizure. Consignor shall defend, indemnify, and hold harmless Horn Auto and RV Sales, Inc and it’s agents, employees, and successors from all liability, claims, and damages and attorney’s fees incurred by Horn Auto and RV Sales, Inc as a result of the repossession or seizure of the vehicle.
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Delivery upon termination:
Upon termination of this Contract for any reason Consignor shall inspect the vehicle make a list of any items for repair that are believed to be the responsibility of Horn Auto and RV Sales, Inc and give this written list to Horn Auto and RV Sales, Inc. Horn Auto and RV Sales, Inc shall make all repairs agreed to be the responsibility of Horn Auto and RV Sales, Inc within thirty (30) days of delivery of the written list (unless additional time is required due to parts availability.) When repairs are completed Horn Auto and RV Sales, Inc will deliver motorhome to Consignor at Horn Auto and RV Sales, Inc’s place of business or the parties may enter into a new rental consignment contract.
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Notices:
All notices shall be sent to the following address either by first class mail, postage prepaid, certified mail, or FEDEX/UPS
Horn Auto and RV Sales Inc
15385 Olde Hwy 80
El Cajon CA 92021
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Changes to Contract
This contract may not be amended, cancelled, revoked, or otherwise modified except by written agreement subscribed by all of the parties.
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Arbitration Provision:
Any action, controversy, or claim arising out of this contract, or the breach thereof (regardless of the amount of controversy) shall be decided by Arbitration. Horn Auto and RV Sales, Inc and the Consignor shall jointly select an Arbitrator. In matters where the amount in controversy in the sole opinion of the Arbitrator does not exceed $10,000.00, the action shall proceed to hearing in the nature of a small claims action pursuant to California Code of Civil Procedure, Sections 116.510 through 116.540 inclusive.
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Any party to this contract may demand arbitration at any time by serving a written demand in person or by registered, certified or Federal Express mail and by serving a copy of the demand on the Arbitrator selected by the Consignor. The written demand shall set forth the names, addresses, telephone numbers and fax numbers of all the parties to this contract and a brief summary of the facts of the action, controversy or claim including an itemization of the damages and statement of the amounts in controversy then known to the party. The Arbitrator shall make determination from the party’s written demand whether the arbitration shall proceed in the nature of small claims action provided however that the arbitrator may require the party to amend, correct, supplement, explain or modify the written demand before any such determination is made.
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The arbitration shall be scheduled and completed within sixty (60) days of service of demand for arbitration. Any fees or costs charged by the Arbitrator or Arbitration Service shall be divided equally among the parties unless the parties agree in writing otherwise.
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Attorney’s Fees:
Each party in any Arbitration or any other legal action shall be responsible solely for their own attorney’s fees and shall not seek to recover from the opposing party any other fees or litigation costs.
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Severability:
In the event any provision of this contract shall be held to be void, voidable or unenforceable the remaining provisions shall remain in full force and effect.
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Governing Law and Venue:
This contract shall be construed in accordance with and shall be governed by the laws of the State of California. Any arbitration or lawsuit shall be held in the County of San Diego, California.
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Warranty of Authority:
Each party whose signature is affixed hereto in a representative capacity represents and warrants that he or she is authorized to execute this contract.
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Binding on Successors:
This contract shall be binding upon and shall insure the benefit of the parties hereto and their respective partners, employees, agents, servants, heirs, administrators, executors, successor, representatives and assigns.
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It is understood the Horn Auto and RV Sales, Inc has the sole and exclusive right to set rental rates.
No promises or guarantees of income have been implied or given. It is understood that the rental prices published is a guideline for price quotations. From time to time according to competitive market conditions, discounts from the rental price sheet may be offered. Horn Auto and RV Sales, Inc will, as necessary road test the motorhome. Horn Auto and RV Sales, Inc may also utilize vehicle to familiarize themselves with the unit. This would not exceed a two night use and two hundred (200) miles. We also use vehicles for promotional purposes to promote business for YOU. We may donate or display your vehicles to events to gain exposure for our company.
