1 FULL MAINTENANCE RENTAL AGREEMENT 1.18. between MIGOWAVE (PROPRIETARY) LIMITED T/A ARIVA (registration number 2011/009222/07) 1.19. (“Ariva”) and THE PERSON SPECIFIED IN PARAGRAPH 1 OF THE SCHEDULE (“the renter”) 1.20. 1.21. 1. 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12. 1.13. 1.14. 1.15. 1.16. 1.17. DEFINITIONS AND INTERPRETATION “accessory” means any item which is not included as a standard item in the published retail price of the vehicle and which is an additional item to the vehicle; “agreement” means this Full Maintenance Rental agreement and the attached Schedule; “authorised service provider” means any dealer/supplier appointed by the manufacturer and/or importer of the vehicle and who has been approved by Ariva to service and/or repair the vehicle; “Auto Dealer’s Digest” means the monthly publication published by Mead & McGrouther (Proprietary) Limited detailing information used in determining the value of new and used motor vehicles; “business day” means any day other than a Saturday, Sunday and/or a public holiday as gazetted by the government of the RSA from time to time; “commencement date” means the date specified in item 2 of the Schedule; "Consumer Protection Act" means the Consumer Protection Act, No. 68 of 2008, as amended, and the regulations promulgated thereunder; “delivery address” means the address specified in item 4 of the Schedule at which the renter will take delivery of the vehicle on the commencement date; "delivery acceptance form" means the delivery acceptance form issued by Ariva to be signed by the renter on delivery of the vehicle , and which will reflect inter alia, the date of delivery of the vehicle; “deposit” means the amount specified in item 6 of the Schedule, payable by the renter to Ariva in terms of clause 6; "distance travelled" means the distance travelled by the vehicle as determined in terms of clause 10 of this agreement; “excess kilometre charge” means the rand amount payable by the renter in respect of the excess kilometres, calculated by multiplying the excess kilometres by the excess kilometre fee; “excess kilometres” means the number of kilometres travelled by the vehicle in excess of the maximum kilometres; “excess kilometre fee” means the fee specified in item 7 of the Schedule; “first rental payment date” means the date specified in item 11 of the Schedule; “manufacturer” means the manufacturer of the vehicle; “manufacturer’s handbook” means the booklet provided by the manufacturer of the vehicle, which contains instructions for, amongst other things, the use, care and maintenance of the vehicle; Version: 1.04 Date: 12 July 2011 1.22. 1.23. 1.24. 1.25. 1.26. 1.27. 1.28. 1.29. 1.30. 1.31. 1.32. 1.33. 1.34. 1.35. 1.36. 1.37. “maximum kilometres” means the maximum distance which the vehicle may travel in each period of 6 months of the rental period and which distance is specified in item 8 of the Schedule; “nominated persons” means the other persons identified in item 9 of the Schedule, who are, in addition to the renter, nominated by the renter who may use and/or be in control of the vehicle and whose actions shall be deemed to be attributable to the renter for the purposes of this agreement; “parties” means Ariva and the renter, and “party” means either of them as the context indicates; “prorated rental” means the rental payable by the renter to Ariva for the period from the commencement date to the first rental payment date as provided for in clause 5.2 (being a pro rata portion of the monthly rental); "protected consumer" means a consumer as defined in section 1 of the Consumer Protection Act and whose annual turnover or assets value falls below the threshold contemplated in section 5 of the Consumer Protection Act and to whom the Consumer Protection Act applies; “rental” means the monthly rental amount specified in item 10 of the Schedule payable by the renter to Ariva in respect of the rental of the vehicle; “rental payment day” means the day of each month specified in item 12 of the Schedule, being the day on which each rental shall be payable; “rental period” means the term of this agreement referred to in item 13 of the Schedule; “return date” means the date specified in item 3 of the Schedule, being the date on which the vehicle must be returned to Ariva at the end of the rental period, subject to clause 17.1; "replacement value" means, from time to time, the retail value of the vehicle specified in the then current publication of the Auto Dealer's Digest, which value shall be final and binding on the parties; “return address” means the address specified in item 5 of the Schedule at which the renter must return the vehicle on the return date; “RSA” means the Republic of South Africa; “SAVRALA” means the South Africa Vehicle Rental and Leasing Association; “SAVRALA Guide” means the SAVRALA Guide annexed hereto marked Annexure “A”; “Schedule” means the schedule annexed to this agreement; “service” means the scheduled service and maintenance that is required to be effected to the vehicle in accordance with the requirements of the manufacturer, and the term “serviced” shall have a corresponding meaning; “termination date” means the date of the termination of this agreement for any reason whatsoever; “tracker" means the device installed in the vehicle by Ariva to measure the distance travelled by the vehicle and to track the vehicle's location; “vehicle” means the vehicle referred to in item 14 of the Schedule, including the keys, tools and spare tyre of the vehicle and all accessories supplied with the vehicle; words used on the face hereof shall have the same meanings in this agreement; 2 1.38. 1.39. 1.40. 2. 2.1. 2.2. unless a contrary intention clearly appears, a reference to the singular shall include the plural, to one gender shall include the other genders and to natural persons shall include juristic persons, all vice versa; any reference to any statute or statutory provision is a reference to that statute or statutory provision as at the date of signature of this agreement and as amended or re-enacted from time to time; where any number of days is prescribed in this agreement, then that number shall be determined exclusively of the first day and inclusively of the last day, unless the last day falls on a day which is not a business day, in which case the last day shall be the next business day thereafter. CONDITION PRECEDENT This agreement is conditional on the renter paying the deposit and the prorated rental to Ariva. Should the renter fail to pay the deposit and the prorated rental, the provisions of this agreement shall lapse and be of no further force or effect and neither party shall have any claim against the other party arising out of or in connection with this agreement. 3. RENTAL OF THE VEHICLE Ariva rents the vehicle to the renter, who hires same, on the terms and conditions set out in this agreement. 4. DURATION This agreement shall subject to clauses 5.2 and clause 6.1, commence on the commencement date and shall remain in force for the rental period, unless terminated earlier in terms of this agreement The renter agrees to the rental period and that the said period is reasonable, taking into consideration the advantage to the renter of a rental period of the stated duration set out in clause 4.1 which enables Ariva to charge a lower rental than would otherwise be the case if the rental period was of a shorter duration. 4.1. 4.2. 5. 5.1. 5.2. 5.3. 5.4. 5.5. RENTAL AND OTHER PAYMENTS Subject to clause 5.2, the first rental shall be paid on the first rental payment date and subsequent rentals on the rental payment day of each succeeding month of the rental period. The prorated rental shall be payable into Ariva’s bank account specified in item 15 of the Schedule on the same date as the deposit as provided in clause 6.1 by way of – 5.2.1. electronic funds transfer; or 5.2.2. direct deposit. Save as provided for in clause 5.2, all rentals and other amounts payable in terms of this agreement shall be paid without deduction or set off by way of debit order into Ariva's bank account specified in item 15 of the Schedule, unless expressly otherwise authorised by Ariva in writing. Any revocation by the renter of a debit order authorisation shall constitute a material breach of this agreement. In addition to the rental and subject to clause 5.11, the renter shall irrespective of the cause of any accident damage to the vehicle be liable to pay to Ariva an amount equal to the lesser of R2 400 and the actual Version: 1.04 Date: 12 July 2011 5.6. 5.7. 5.8. 5.9. 5.10. 5.11. 6. 6.1. 6.2. 6.3. 6.4. 6.5. cost of repair (but subject to clause 5.8) of such accident damage. Subject to clause 5.8, until such time as the cost of repairs in terms of clause 5.5 has been determined, the renter shall be obliged, on a provisional basis, to pay to Ariva, the amount of R2 400 referred to in clause 5.5 by way of 6 monthly instalments of R400 each, the first of which shall be paid on the next rental payment date immediately following the month in which the accident damage has occurred, and subsequent instalments on the 5 (five) rental payment dates thereafter. Once the total repair cost has been determined, if it is less than R2 400 and if the aggregate of the payments made by the renter in terms of clause 5.6 as at the date of such determination 5.7.1. exceed the cost of repairs, the excess amount shall be refunded to the renter within 7 days; and 5.7.2. are less than the cost of repair, the number of remaining instalments payable by the renter in terms of clause 5.6 shall be appropriately adjusted. Subject to clause 5.11, in the case of accident damage which results in the vehicle being written off, the renter shall pay Ariva the sum of R2 400 within 10 days of receipt of notification from Ariva that it has decided to write off the vehicle , which decision shall be in the sole discretion of Ariva. Subject to clause 9, in the event of the theft of the vehicle and its non-recovery within 14 days, the renter shall be liable to pay to Ariva the sum of R5 000 on receipt of demand for such payment. In the event that any instalments payable in terms of clause 5.6 is not paid on due date, the total balance of the amount payable in terms thereof, shall forthwith become due and payable, without prejudice to any other rights that Ariva may have in terms of clause 19 arising from such breach. The provisions of this clause 5 are in addition to, and shall not detract from Ariva’s rights in terms of clauses 9.4, 9.6 and 11. DEPOSIT The renter shall pay the deposit to Ariva within 9 days of the date of the signing of this agreement by the renter. Until such time as the deposit is received by Ariva, the vehicle will not be delivered to the renter, notwithstanding any other rights which Ariva may have arising from the renter’s failure to pay the deposit. The deposit shall earn interest at the same rate as a 30 day fixed deposit of such amount held with Standard Bank Limited, from time to time. Ariva shall be entitled at any time during the rental period and/or upon termination of this agreement to deduct from the deposit and interest earned thereon, any amounts payable by the renter in terms of this agreement which are not paid when due. The deposit, together with interest earned thereon, net of any such deductions, shall be refunded by Ariva to the renter within 30 days of the termination date. In the event that the deposit has been fully or partially utilised by Ariva in accordance with the provisions of this agreement, the renter shall, if called upon to do so by Ariva, pay to Ariva such amount as may be required 3 to reinstate the deposit to the amount specified in item 6 of the Schedule. 7. 7.1. 7.2. 7.3. 7.4. 7.5. 7.6. 7.7. 8. 8.1. 9. 9.1. DELIVERY AND RETURN Subject to clause 6.1 and clause 5.2, the renter shall take delivery of the vehicle on the commencement date at the delivery address, after signing the delivery acceptance form. By the renter’s signature of the delivery acceptance form, the renter shall be deemed to have acknowledged that the renter has inspected the vehicle and that unless otherwise recorded on the delivery acceptance form, the vehicle was delivered by Ariva to the renter free of any damage of whatsoever nature and in good order, condition and repair. By no later than 12h00 on the return date the renter shall, return the vehicle to Ariva at the return address. The renter shall park the vehicle in the designated parking bay, lock the vehicle, hand the keys to Ariva’s authorised representative and complete a vehicle return form with Ariva’s authorised representative. The vehicle shall be returned by the renter to Ariva in the same condition as it was when delivered by Ariva to the renter as recorded in clause 7.2, fair wear and tear excepted in accordance with the SAVRALA Guide. Failure to return the vehicle on the return date shall constitute illegal possession by the renter and Ariva may take whatever legal steps may be necessary to procure the return of the vehicle at the cost and expense of the renter. The renter shall be liable for the following costs in respect of, or relating to the return of the vehicle – 7.6.1. all and any costs, losses or damages incurred by Ariva in procuring the return of the vehicle from the renter; 7.6.2. all damages or losses suffered by Ariva due to the renter’s failure to return the vehicle on the return date; 7.6.3. the costs incurred by Ariva to have the vehicle repaired and/or restored in order to reinstate the vehicle to the condition referred to in clause 7.3. The costs referred to in clause 7.6 shall be payable by the renter to Ariva on demand. INDEPENDENT COSTS Ariva in no way assumes responsibility or liability for, and the renter shall be responsible for and shall pay the following – 8.1.1. all fines, taxes, charges, duties, levies and tolls in respect of or incurred by the renter and and/or arising out of the rental and/or use of the vehicle by the renter and/or any nominated persons; 8.1.2. all fines and court costs payable for any violation of any law by the renter and/or nominated persons relating to the use of the vehicle by the renter and/or any nominated persons; VEHICLE DAMAGE/THEFT In case of an accident involving the vehicle or theft of the vehicle, the renter shall - Version: 1.04 Date: 12 July 2011 within 24 hours, or such further period as is reasonable in the circumstances, report the incident to Ariva and the police and obtain a police case number; 9.1.2. within 24 hours, or such further period as is reasonable in the circumstances, complete all documents required by Ariva and its insurers; 9.1.3. furnish all assistance required by Ariva and its insurers to deal with any matters arising from the incident. In the case of an accident involving the vehicle, the renter shall – 9.2.1. ensure that the vehicle is towed only by the roadside assistance company nominated by Ariva and; 9.2.2. permit any representative of Ariva to inspect the vehicle at any reasonable time. Save where the vehicle is to be written off, Ariva shall, subject to the provisions of clause 5.5, at its cost and expense, and through an authorised service provider nominated by it, attend to the repair of any accident damage caused to the vehicle as expeditiously as possible in the circumstances. Notwithstanding that the renter is deprived of the use and possession of the vehicle in the circumstances referred to in clause 9.1, 9.4.1. the renter shall continue to be liable for and shall make payment of the rental due in terms of this agreement to Ariva, provided that and subject to the renter not being in breach of any of his obligations in terms of this agreement, and in particular the obligations set out in clause 11, if the deprivation of use is in excess of 14 days, the renter shall on the rental payment date immediately following the return of the vehicle to the renter, be refunded an amount equal to the rental paid by the renter for the period which is in excess of the aforementioned 14 day period, determined on a pro rata basis; 9.4.2. the renter shall have no claim for a temporary replacement or for a substitute vehicle nor shall the renter be entitled to withhold any payment on the due date for payment thereof in terms of this agreement. In the event of theft, major repair, or the vehicle, in the discretion of Ariva being uneconomical to repair, Ariva shall have the right to substitute another vehicle of substantially similar (but not necessarily the same) make, model, specification, and standard, and such substitute vehicle shall be subject to the terms and conditions of this agreement and the renter shall have the same rights and obligations in respect of that substitute vehicle. Notwithstanding clause 9.4.1, in the event of any damage caused to the vehicle or any loss of the vehicle due to the renter’s breach of this agreement or any law or as a result of any other unlawful conduct on the part of the renter or a nominated person, then the renter shall be liable to pay to Ariva an amount equal to the total cost of repairs to the vehicle, where the vehicle is damaged and repaired, or the replacement value of the vehicle in the event that the vehicle is written-off or stolen, as the case may be. 9.1.1. 9.2. 9.3. 9.4. 9.5. 9.6. 4 Without prejudice to Ariva’s rights in terms of clause 9.6 and notwithstanding anything to the contrary contained in this agreement – 9.7.1. should the vehicle be damaged to an extent which, in Ariva’s discretion, makes it uneconomical to repair; or 9.7.2. the vehicle is stolen, and – 9.7.2.1. remains unrecovered for more than 21 days from the date of such theft; or 9.7.2.2. is recovered within 21 days of such theft but is damaged to an extent which, in Ariva’s discretion, makes it uneconomical to repair, Ariva may in its discretion, either elect to terminate this agreement or to provide a substitute vehicle as contemplated in clause 9.5. 9.8. Should the vehicle be involved in an accident, be stolen, or be damaged to an extent which makes it uneconomical to repair (“the incident”), and should Ariva recover in full its damages in respect of the incident from a third party, Ariva shall refund to the renter all amounts paid by the renter to Ariva in respect of the incident in terms of this agreement. 9.7. 10. 10.1. 10.2. 10.3. 10.4. 11. 11.1. MAXIMUM KILOMETRES The renter undertakes that the vehicle will not exceed the maximum kilometres and authorises Ariva to audit the number of kilometres travelled by the vehicle in each six month period of the rental period. The tracker installed in the vehicle shall be used to determine the distance travelled by the vehicle during each period referred to in clause 10.1 and during the entire rental period. The information furnished by the tracker shall be conclusive proof of the distance travelled and shall be binding on the parties, save in circumstances of manifest error. Should the tracker fail to register kilometres driven for any reason whatsoever, Ariva shall procure that it is repaired as soon as is reasonably possible at Ariva’s cost. The distance travelled during the period of such failure shall be determined by the odometer of the vehicle. Should the vehicle exceed the maximum kilometres, the renter shall, in addition to the rental, be liable for, and shall pay the excess kilometre charge, which amount shall be paid in 6 equal instalments, the first of which shall be paid on the rental payment date immediately following the date on which Ariva has advised the renter in writing of the amount of the excess kilometre charge and subsequent instalments on each of the 5 succeeding rental payment dates. RENTER’S OBLIGATIONS During the rental period, all risk in and to the vehicle shall be with the renter notwithstanding the use of the vehicle by any nominated persons. Version: 1.04 Date: 12 July 2011 11.2. The renter shall not 11.2.1. hire or lend the vehicle to anyone; 11.2.2. permit the vehicle or the keys of the vehicle to be in the possession or control of anyone other than the renter or the nominated persons; 11.2.3. cause or permit the vehicle to be driven unlawfully or to be used for any unlawful purpose or for a purpose for which it was not designed or in such a way as to increase the risk of it being damaged or stolen; 11.2.4. cause or permit the vehicle to carry any passengers or goods for reward or for racing or as an armed response vehicle; 11.2.5. permit the vehicle to be used for any other purpose than transportation of the renter, the nominated persons and the renter's family and friends; 11.2.6. cause or permit the vehicle to be exposed to the risk of damage in or by any civil or public disturbance or unrest; 11.2.7. cause or permit the vehicle to be towed, repaired or serviced save with the prior authorisation of Ariva; 11.2.8. cause or permit the odometer fitted in the vehicle and/or the tracker to be tampered with; 11.2.9. cause or permit the vehicle to be driven on any road not suitable for the vehicle; 11.2.10. cause or permit the vehicle to be taken across a South African border; 11.2.11. cause or permit the vehicle to participate in any motor sport, pace making, rallying, reliability trials or other similar activities; 11.2.12. cause or permit the vehicle to be loaded in excess of the load or seating capacity specified by the manufacturer or permitted by law; 11.2.13. drive the vehicle or permit the vehicle to be driven by any nominated person, whilst the driver is not holding a valid and current full driving licence to operate the vehicle which licence has not been endorsed for any reason; 11.2.14. drive the vehicle or permit the vehicle to be driven by any nominated person, at any time whilst the driver is under the influence of intoxicating liquor or drugs. 11.2.15. drive the vehicle or permit the vehicle to be driven whist it is in an un-roadworthy condition or in a condition which is liable to cause danger to any person or property, or in any manner constituting a breach of any statutory or other law, or use the vehicle for the transportation of hazardous materials, including, but not limited to flammables, combustibles, acids, caustics, explosives, or other dangerous materials as defined by regulations promulgated by any authority in the RSA, unless otherwise agreed in writing by Ariva; and 11.2.16. cause or permit any paint, mark, identification or advertising to be used or displayed on the vehicle, or any alteration or modification being made to or added on to the vehicle, without Ariva’s prior written approval; 11.2.17. cause or permit the vehicle to be used or driven in a manner which results in the vehicle having to undergo repairs and/or replacement of parts which would not normally be required to be 5 11.3. 11.4. 11.5. 12. 12.1. 12.2. undertaken if the vehicle was used in a reasonable and responsible manner; 11.2.18. abandon the vehicle; 11.2.19. permit anyone other than the renter and the nominated persons to drive or be in possession of the vehicle. The renter shall take all precautions to protect the vehicle from theft and damage and shall lock and immobilize the vehicle and activate the burglar alarm whenever the vehicle is not in use. If the keys of the vehicle are lost or locked in the vehicle, the renter shall report the matter to Ariva and the keys will be retrieved or replaced by Ariva at the renter’s cost. The renter shall furthermore ensure compliance with all the renter’s obligations in terms of clause 12 below. SERVICE AND MAINTENANCE Ariva shall procure that the vehicle will be covered by a maintenance plan for the duration of the rental period, which maintenance plan shall cover the costs relating to the service and maintenance of the vehicle as set out in clause 12.4, subject however to the provisions of clauses 12.2 and 12.5. The renter shall – 12.2.1. comply with the manufacturer’s vehicle handbook in regard to the use, care and maintenance of the vehicle; 12.2.2. ensure that the vehicle is maintained in good repair and condition (including the normal service and oil changes as recommended by the manufacturer) by arranging for the vehicle to be delivered to an authorised service provider for the servicing of the vehicle at the required intervals and for any repairs required to the vehicle; 12.2.3. report to the authorised service provider any defect which may be the subject of a current or future vehicle warranty claim; 12.2.4. not make or permit any change or modification or addition to be made to the vehicle or use it for towing without the prior written consent of Ariva; 12.2.5. when any maintenance work is complete, check and sign all invoices and ensure that they are forwarded to Ariva; 12.2.6. use an authorised service provider for all servicing, maintenance and repairs to the vehicle, unless otherwise authorised by Ariva in writing; 12.2.7. provide reasonable assistance to the authorised service provider to enable the efficient provision of the servicing of the vehicle; 12.2.8. be responsible for the weekly checking of oil, battery, brake and clutch fluids, water, tyre condition and pressures and all other items which require periodical checking for the proper functioning of the vehicle; 12.2.9. provide (at the renter’s cost) all fuel and oil topping up required for the proper operation of the vehicle and shall only use such fuel and oil as specified by the manufacturer; 12.2.10. be entitled to permit any emergency repairs of the vehicle which may be required in the circumstances, on the basis that Ariva shall pay Version: 1.04 Date: 12 July 2011 the reasonable cost of such repairs against production of proper invoices therefor and a written explanation of the circumstances under which the expenses were incurred, provided however that such repairs have not been caused as a result of a breach of any of the terms of this agreement by the renter; 12.2.11. procure that any modifications which are required to be made to the vehicle by law, are carried out by an authorised service provider. 12.3. The renter shall not perform or permit any service, repairs or adjustments to be performed in respect of the vehicle, except as provided in terms of clause 12.2.2, provided that the renter shall, after obtaining written authorisation from Ariva, be entitled to repair or replace worn or damaged tyres, the use of which will render the vehicle unsafe or will contravene road traffic regulations, provided that the renter shall pay for all tyres repaired or replaced during the rental period if the repair or replacement is not, in Ariva’s discretion, covered by clause 12.4.3. 12.4. Ariva shall subject to clause 12.3, pay the following amounts in respect of any service and/or repairs referred to in clause 12.2.2 12.4.1. the cost of servicing the vehicle which, without limiting the generality thereof, shall include the supply of engine oil, transmission oil and service products at the times specified in the service booklet provided by the manufacturer; 12.4.2. any preventative treatment, checks or other work which Ariva, in its reasonable discretion, deems necessary; and 12.4.3. the replacement of tyres as and when required as a result of normal wear and tear, provided that the tyres have travelled a distance of more than 50 000 kilometres. 12.5. Notwithstanding clause 12.4, Ariva shall NOT be liable for any of the costs incurred in respect of the matters specified below, all of which shall be for the renter’s account, and as such the renter shall be responsible to pay for these costs if and when they arise 12.5.1. repair of any damage to the vehicle caused by one or more of the following 12.5.2. the use in the vehicle of oils, fuel, and other service products not approved by the manufacturer or Ariva; 12.5.3. the failure to have the vehicle serviced timeously in accordance with the manufacturer’s specifications or requirements; 12.5.4. the failure to carry out normal preventative maintenance in respect of the vehicle; 12.5.5. the neglect, misuse, abuse or improper handling of the vehicle or any of its parts; 12.5.6. service or repair of the vehicle by any person other than an authorised service provider, unless expressly permitted in terms of this agreement; and 12.5.7. repair of damaged glass, including windscreens, lenses, sealed beams and mirrors; 12.5.8. damage to tyres (including punctures) excluding fair wear and tear; 12.5.9. repair to or maintenance of any body work or equipment, accessories or fitments, which were 6 12.6. 12.7. 12.8. 13. 13.1. 13.2. not fitted to the vehicle by the manufacturer and/or authorised service provider, or with Ariva’s consent, or which have been altered without Ariva’s written permission; 12.5.10. costs of and incidental to any repairs or maintenance which are occasioned or partly occasioned, wholly or partially, by the renter’s failure to comply with any obligation in terms of this agreement; 12.5.11. all fuel consumed by the vehicle; 12.5.12. all topping-up of lubricants between services; 12.5.13. the replacement of any part or item missing from the vehicle; 12.5.14. charges resulting from abuse, vandalism, any form of civil or military upheaval, strife or disturbance, whether politically instigated or otherwise and any acts of God; 12.5.15. any other maintenance and repair which is carried out otherwise than in accordance with this agreement; 12.5.16. the repair or maintenance of any accessory, modification or equipment which was not fitted to the vehicle when it was originally manufactured; and 12.5.17. the repair of any work required as a result of the renter failing to comply with the terms of this agreement or with the renter's obligations in terms of the manufacturers handbook. Should the renter fail to have any repairs and/or replacements to the vehicle as contemplated in clause 12.5 attended to, Ariva shall be entitled to have same attended to on behalf of the renter, in which event any costs so incurred by Ariva shall be payable by the renter to Ariva upon demand. If repairs are required to be effected to the vehicle due to the renter’s abuse/misuse of the vehicle, then, in addition to the costs of the repair, for which the renter shall be liable in terms of clause 12.5.5, Ariva shall be entitled to levy on the renter a reasonable processing fee. Should the renter dispute any claim of misuse or abuse, Ariva shall appoint a technical advisor of the manufacturer or authorised service provider, to determine the dispute, acting as an expert and not as an arbitrator, and whose decision, including his determination regarding his liability for his costs, shall be final and binding on the parties. In making such determination the expert shall consider the driver’s guide and guidelines referred to in the SAVRALA Guide. In the event of repeated vehicle malfunction, the provisions of clause 9.5 shall also apply in regard to the substitution of another vehicle. ROAD SIDE ASSISTANCE The vehicle will be covered by a road side assistance policy. “roadside assistance” means road side assistance service, which will be available at all hours of the day or night and will include – 13.2.1. jump start service; 13.2.2. key lockout service ; 13.2.3. flat tyre change; 13.2.4. recovery towing service; 13.2.5. towing of vehicles in the event of an accident; Version: 1.04 Date: 12 July 2011 13.2.6. any other services offered in the roadside 13.3. 14. 14.1. 14.2. 14.3. 14.4. 14.5. 14.6. assistance manual. Should the renter require road side assistance the renter shall phone Ariva’s Road Side Assistance line at the phone number specified in item 19 of the Schedule. LICENSING REQUIREMENTS Ariva shall be responsible for the initial registration and licensing of the vehicle and Ariva shall retain possession of the registration document of the vehicle as the registered titleholder thereof. The Renter shall be responsible for the annual licensing of the vehicle. If the renter does not receive any notice of renewal at least 14 (fourteen) days prior to the expiry date of the existing licence, the renter shall advise Ariva thereof in writing. Save for gross negligence on the part of Ariva, Ariva shall not be held liable for any damages, claims, penalties or fines whatsoever that the renter may incur in the event that the renter does not timeously receive the licence disc. The renter shall be obliged to affix the license disc to the windscreen of the vehicle prior to the expiry date of the existing licence and any fines incurred as a result of not affixing same shall be for the renter’s account. On the termination of this agreement the renter shall take all required steps to transfer the licence of the vehicle from the renter to Ariva. The renter accordingly hereby authorises Ariva to sign all documents and do whatever else may be necessary to effect the transfer of such licence. 15. OWNERSHIP Ownership of the vehicle shall at all times remain vested in Ariva, notwithstanding that the vehicle will be licenced in the name of the renter in compliance with the relevant legislation. The renter’s rights in and to the vehicle are limited to the use and possession thereof in accordance with the terms of this agreement. 16. RENEWAL OR CONCLUSION OF A NEW RENTAL AGREEMENT Upon expiry of the rental period – 16.1.1. if the renter wishes to continue using the vehicle, the renter will , if Ariva so elects, be afforded the right to do so subject to a new rental agreement in respect of the vehicle being concluded between the parties on terms and conditions acceptable to them; or 16.1.2. provided that the renter has timeously observed all the terms of this agreement, the renter may, in the discretion of Ariva, be offered the opportunity to enter into a new rental agreement 16.1. 17. 17.1. PROCEDURE ON TERMINATION OF THE AGREEMENT On the termination date, the renter shall return the vehicle to Ariva at the return address in the same condition as it was when it was rented to the renter, fair wear and tear excepted, with all the spare keys, tools, spare tyre, service booklet and licence documents any other documents appertaining to the vehicle and all accessories and sound equipment which were fitted to 7 17.2. 17.3. 17.4. 18. 18.1. 18.2. 19. 19.1. the vehicle at the commencement date or, where applicable, during the rental period. On the termination date, the renter shall pay to Ariva any amounts owing to Ariva in terms of this agreement, including all unpaid rentals and any unpaid excess kilometre charges and any other charges for which the renter was liable in terms of clause 12.5 and which remain unpaid. In the event of any early termination of this agreement at the election of the renter in terms of Section 14(2)(b)(i)(bb) of the Consumer Protection Act, a penalty fee equivalent to 10% of the balance of the rentals which would have become due and payable in the future in respect of the remaining rental period as at the termination date, shall be payable by the renter to Ariva on demand, in addition to all and any amounts which may be payable by the renter until the termination date in terms of this agreement and which remain unpaid. All risk of loss or damage to the vehicle shall remain with the renter until Ariva has issued an acknowledgement of receipt in respect of the vehicle, it being specifically agreed that the vehicle shall be deemed not to have been returned to Ariva if it is left at Ariva’s premises without an acknowledgement of receipt having been obtained in respect thereof. CUSTOMER BONUS Provided that this agreement has terminated by effluxion of time and the renter has timeously observed all the terms of this agreement, Ariva shall grant the renter a customer bonus as set out below, payable within 30 days of the termination date – a cash payment of R1 000; or a credit of R4 000 in respect of the first rentals payable by the renter in terms of a new rental agreement, if the renter wishes to conclude such an agreement, and such agreement is concluded within 30 days of the termination date. BREACH Subject to the provisions of clause 19.2 should the renter – 19.1.1. default in the punctual payment of any amount due in terms of this agreement or breach any other term of this agreement, and fail to remedy such default or breach within 4 days of receipt of written notice advising the renter of the default and/or breach; or 19.1.2. assign, surrender or attempt to assign or surrender his estate; or 19.1.3. compromise with his creditors or endeavour or attempt to do so; or 19.1.4. suffer any default final judgement to be granted against him, which remains unsatisfied for 7 days; or 19.1.5. abandon the vehicle; or 19.1.6. have made any incorrect or untrue statement or representation in connection with this agreement or the renter’s financial affairs; or 19.1.7. permit the vehicle to be seized under any legal process issued against the renter, Ariva shall have the right, without prejudice to any other rights which it may have – Version: 1.04 Date: 12 July 2011 (a) 19.2. 19.3. 20. 20.1. 20.2. 21. 21.1 21.2. to claim specific performance and/or damages; or (b) to cancel this agreement, obtain the immediate return of the vehicle and claim damages or a penalty equivalent to 15% of the balance of the rentals which would have become due and payable in the future in respect of the remaining rental period as at the termination date. Notwithstanding anything to the contrary contained in this agreement, in the event that Ariva intends to exercise its right to cancel this agreement and the renter is a protected consumer in respect of whom section 14 of the Consumer Protection Act applies, then Ariva shall be obliged to give the renter 20 business days written notice calling upon the renter to remedy a material breach, and in the event that the renter fails to remedy such material breach within such period, then Ariva shall be entitled to exercise its right to cancel this agreement. and obtain the other relief contemplated in the clause 19.1.7(b) In the event that legal proceedings are instituted by Ariva against the renter, the renter shall be liable for all of the legal costs incurred by Ariva in respect of such proceedings on the scale as between attorney and own client . NOTIFICATION TO LANDLORD If the vehicle is to be kept on premises that are not owned by the renter, the renter shall, prior to the commencement date, inform the landlord of the premises in writing that the vehicle is owned by Ariva, and provide Ariva with written confirmation from the landlord of receipt of the notice, failing which Ariva shall, without prejudice to any other rights which it may have, be entitled to inform the landlord. Upon the signing of this agreement, the renter shall provide Ariva with the name and address of the landlord and the renter shall notify Ariva of any change in that address, as soon as it occurs. DOMICILIA/ADDRESSES The parties choose as their respective domicilia citandi et executandi, the addresses mentioned in this clause 21, for the service of all notices and processes in terms of this agreement, provided that either party may change its domicilium aforesaid by written notice to the other party with effect from the date of receipt or deemed receipt of such notice. 21.1.1. Ariva - the address specified in item 15 of the Schedule 21.1.2. the renter - the address specified in item 16 of the Schedule Any notice, order, acceptance, demand or other communication addressed by either party to this agreement to the other party at its domicilium in terms hereof for the time being and sent by prepaid registered post, shall be deemed to be received by the addressee on the seventh business day following the date of posting. This provision shall not be construed as precluding the utilisation of other methods of delivery of notices, orders, acceptances, demands and other communications, including delivery by hand. 8 21.3. All legal processes shall be regarded as validly served if served at a party's domicilium. 22. GOVERNING LAW AND JURISDICTION This agreement shall be governed by the laws of the RSA. The renter hereby consents to the non-exclusive jurisdiction of the Magistrate’s Court having jurisdiction over the renter, even if the amount in issue would otherwise exceed the jurisdiction of such court. The provisions of clause 22.2 shall not preclude Ariva from instituting legal proceedings in any other court which has appropriate jurisdiction. 22.1. 22.2. 22.3. 23. 23.1. 23.2. 23.3. 23.4. 23.5. GENERAL This is the entire agreement between the parties and no variation or cancellation shall be valid unless in writing and signed by the parties. A provision of this agreement which is invalid or unenforceable for any reason shall be severable from the rest of this agreement and shall not affect the validity of the remainder of this agreement. The renter may not transfer the renter’s rights nor assign the renter's obligations in terms of this agreement to any other person. The renter agrees that this agreement is in the language nominated by the renter. By the renter’s signature hereto, the renter hereby authorises Ariva to conduct credit bureau checks or any other checks required by law on the renter, if necessary. SIGNED at _____________________________ SIGNED at on ____________________________ _______________________________20____ on _______________________________20___ _________________________ For RENTER MIGOWAVE (PROPRIETARY) LIMITED T/A ARIVA WHO BY HIS SIGNATURE HERETO, ALSO ACKNOWLEDGES AND CONFIRMS THAT HE HAS READ AND UNDERSTOOD THIS AGREEMENT AND THAT HIS ATTENTION HAS BEEN SPECIFICALLY DIRECTED TO THE PROVISIONS OF CLAUSES 5.11, 7.2, 7.4, 12.5 AND 14.4. _________________________ SPOUSE (if married in community of property)Pierre Version: 1.04 Date: 12 July 2011 ______________________________________ who is duly authorised thereto
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