Car Authorization Contract in Hanoi: Key Considerations

The story goes that Mr. Ba in Gia Lam owns a 2010 Dongfeng truck. Now older, he can no longer drive long distances. His son, Tuan, needs a truck to transport goods from agencies on Le Duan Street to a warehouse in Hoai Duc. So, Mr. Ba decides to draw up a car authorization contract for Tuan to use the truck.

This seemingly simple scenario is actually a common situation. What is a car authorization contract? When is it necessary, and what should you keep in mind? This article from Hanoi Trucks will provide detailed answers.

Car Authorization Contract: Definition and Role

Authorization Contract: “Borrowing Rights,” Not “Giving Away the Car”

Simply put, a car authorization contract is a legal document allowing the registered owner of the vehicle (the authorizer) to grant the right to use the vehicle to another person (the authorized user) for a specific period.

It’s important to note that this contract does not change the ownership of the vehicle. This means Tuan, in the story above, only has the right to use Mr. Ba’s Dongfeng truck, not to own it.

When is a Car Authorization Contract Necessary?

A car authorization contract is typically used in the following cases:

• Allowing family members to use the vehicle: Like the case of Mr. Ba and Tuan.
• Leasing a vehicle: The owner can authorize the lessee to use the vehicle during the lease term.
• Lending a vehicle: When lending a car to friends or acquaintances for a short period.

Benefits of Establishing an Authorization Contract

• Mitigates legal risks: In case of disputes, traffic accidents, etc., the authorization contract serves as legal proof protecting the rights of the involved parties.
• Protects the authorizer’s rights: The contract clearly defines the rights and obligations of each party, preventing the authorized user from misusing the vehicle.
• Simple and fast procedures: Compared to buying or selling a car, the authorization procedure is much simpler.

Important Considerations When Creating a Car Authorization Contract

Here are some crucial points to consider when drafting a car authorization contract:

• Contract format: The contract can be in written form, notarized or not. However, to ensure legal validity, it’s recommended to have the contract notarized by a competent authority.
• Contract content: The contract should clearly state the information of the parties involved, vehicle information, scope of authorization, authorization period, rights and obligations of each party, etc.
• Responsibilities of the parties: The authorizer must provide all valid vehicle documents. The authorized user is responsible for using the vehicle for its intended purpose, maintaining it carefully, and bearing legal responsibility for their actions while participating in traffic.

Feng Shui Considerations When Authorizing a Car

Vietnamese people highly value Feng Shui, especially in buying, selling, and using vehicles. When authorizing a car, you can consult with Feng Shui experts to choose auspicious dates and times, and vehicle directions suitable for the authorized user’s age, to bring good luck and fortune.