Have a question here, my friends have some difficulties to get a car. So, the plan is i will buy the car with my name and loan (Basically, the ownership legally is mine) with comprehensive insurance under my ownership with he is named as the "second driver". Of course, our agreement is, he will bear everything until he settle the car loan / change of ownership. In other words, he will pay for the loan amount + any amount spent (e.g. maintenance, road tax, insurance etc)
I have few questions here,
1) If he fail to pay (especially the installment) to me, can i legally want it from him ? IF not how ?
2) If the car had been used for illegal activity, any idea what is the consequences ?
So far, my only option is to prepare a simple agreement (not sure require stamp in IRB like tenancy agreement) with few clause stated that he
1) will pay for the rental and any expenses occur on the stated vehicle
2) will held fully responsible if there is any unlawful activity, accident etc.
The exact clause are as below
I agree to pay a sum of RM400 (Four Hundred Ringgit Malaysia) as monthly rental fee to the owner stated above.Kindly advise if i am doing the right thing, thanks alot guys.
2. Not to use the stated vehicle for any unlawful activity and will be held fully responsible for any, but not limited to vehicular accident, damages, lose, fire or theft caused to the stated vehicle.
3. In the event that the Termination Date occurs, for any reason, prior to the end of the tenure period, the Borrowers shall pay the sum of the remaining period of 108 months including any Administrative Agent, for the benefit of the Lenders.