Car Rental Agreement
1. Overview
This Agreement is a short-term lease of a motor vehicle between a Host and a Renter, facilitated through the Parada platform under the Civil Code of the Philippines and Republic Act No. 8792. It is a private peer-to-peer arrangement: the Host retains ownership of the Vehicle at all times, and the Renter obtains only the temporary right of use for the booked period and purpose. Parada is an online marketplace under Republic Act No. 11967 and is not a rent-a-car company.
2. Parties
- The Host — the verified Parada user who owns, or is the authorized lessor of, the Vehicle, has listed it, and has approved the booking. The Host is the lessor.
- The Renter (Guest) — the verified Parada user, of legal age, who books the Vehicle and pays the fees. For self-drive bookings, the Renter (or a disclosed Authorized Driver) must hold a valid driver's license. The Renter is the lessee.
The platform operator is Parada Technologies, Inc. (SEC Registration No. 2026060256331-09, 24 Sheridan Towers North, Buayang Bato, Mandaluyong City, Metro Manila, Philippines 1550). Parada is not the owner or lessor of any Vehicle and is not a party to the lease between Host and Renter, except in its stated facilitation roles (payment collection, condition documentation, protection-fee facilitation, and dispute support). See Section 20.
3. Eligibility & Verification
Renting or hosting a Vehicle requires identity verification (KYC). The Renter must complete Parada's KYC, which includes a valid driver's license (front and back), a selfie holding the physical license, date of birth, and license details, and must be of legal age and duly licensed to drive for self-drive bookings. The Renter warrants that all documents are genuine and current. Presenting a falsified or another person's license is grounds for immediate cancellation without refund and may constitute Falsification of Public Documents. Only the Renter and any Authorized Driver named in the booking, each meeting the licensing requirement, may drive a self-drive Vehicle.
4. The Vehicle
The Host leases to the Renter the specific Vehicle shown in the Renter's booking confirmation — its make, model, year, color, and, once the booking is Paid or Active, its plate number and pickup details. The booking confirmation and the time- and location-stamped Condition Record (Section 9) form part of this Agreement and are the reference against which the Vehicle's condition is measured.
5. Rental Period
The lease runs from the Start Date and Time to the Return Date and Time shown in the booking. Time is of the essence. The Renter shall return the Vehicle on or before the Return Date and Time unless an extension has been approved through the platform (Section 10).
6. Rates, Fees & Payment
Rates are set by the Host; Parada adds platform and statutory charges. The Renter's total, itemized at checkout before payment, comprises:
| Line item | Amount |
|---|---|
| Rental Fee | The Host's daily rate × rental days (self-drive), or the with-driver daily rate (with-driver) |
| Platform Fee | 10% of the Rental Fee |
| Protection / Insurance Fee | ₱200.00 per rental day (tax-exempt) — see Section 14 |
| Percentage Tax | 3%, applied to the Platform Fee only |
| Delivery Fee & Cleaning Fee | As set by the Host for the option chosen |
| Security deposit | None is collected by Parada |
The amounts shown at checkout govern that booking. These rates are configurable and may change for future bookings; the figures above are the current defaults. No security deposit is collected by Parada, but the Renter remains liable for loss or damage as set out in Sections 11 and 14.
Payment. The full amount is charged upon the Host's approval through a Parada-issued invoice processed by our accredited payment processor (Xendit), payable from the Parada app or web. Payment is due within the invoice's validity window, or the booking lapses. The Renter shall not pay the Host or any agent off-platform, and Parada does not recognize and is not responsible for off-platform payments. Parada remits the Host's share through its payout process, subject to any tax withholding required by law.
7. Reservation & Confirmation
A booking is a request until the Host approves it. The reservation is secured only upon successful payment of the full amount through Parada. Parada does not use a "reservation fee plus balance on pickup" model; the full booking amount is collected on approval.
8. Cancellation & Rescheduling
8.1 Cancellation refund tiers
For a confirmed (paid) booking cancelled by the Renter before the Start Date and Time, the refund of the Rental Fee is:
| When the Renter cancels (before start) | Refund of the Rental Fee |
|---|---|
| 48 hours or more before start | 100% |
| Less than 48 hours before start | 50% |
| At or after the start time | Not cancellable / no refund |
8.2 Rescheduling
A paid booking may be rescheduled through the app before pickup, as follows:
- A move to a same-length period applies immediately and needs no Host approval.
- A move to a longer period requires the Host's approval and payment of a new invoice for the difference.
- A move to a shorter period is not supported (use the cancellation tiers above instead).
- A pending reschedule request automatically voids once the earlier of the original or requested pickup time passes.
9. Pickup, Return & Condition Record
At pickup and again at return, the parties complete an in-app handover. Parada captures baseline, pickup, and return photos of the Vehicle, which may carry time and location (geo) metadata and a watermark, and both parties acknowledge the handover and agree to the applicable terms on-screen. The Host may provide guest-handoff instructions (keys, access, fuel, parking) through the app. The Condition Record is the agreed reference for the Vehicle's condition; the Renter should raise any discrepancy at handover.
The Renter shall return the Vehicle: (a) with all attachments, tools, and items present at the start, in the same condition (ordinary wear excepted); (b) on or before the Return Date and Time; and (c) with the fuel level reflected in the Condition Record. Fuel and toll shortfalls are chargeable to the Renter.
10. Extensions & Late Return
10.1 Extensions
While a rental is Active, the Renter may request an extension of 1 to 12 hours through the app, subject to the Host's approval and the absence of a succeeding booking, and to payment of a new invoice for the extra time. A pending extension request automatically voids a short grace period (about 60 minutes) after the original Return Date and Time if not approved.
10.2 Early return
No refund is due for unused time, as rates are computed per rental day.
10.3 Late return without an approved extension
Returning the Vehicle late without an approved extension is a breach of this Agreement. The platform does not auto-charge late fees; instead, an overdue rental is flagged, the Host may complete (force-advance) the booking, and any amount the Host claims for the overdue period — reasonable liquidated damages such as a pro-rated daily rate for the delay and the Host's proven loss — is pursued through Parada's dispute process (Section 16), not collected off-platform. The Renter shall keep the Host informed of any delay.
11. Renter Responsibilities
11.1 Care and liability
The Renter is responsible for the Vehicle from the time it enters the Renter's possession until it is successfully returned. Subject to any protection under Section 14, the Renter is liable to the Host for loss of or damage to the Vehicle caused during the rental.
11.2 Lawful use only
The Renter shall not: drive under the influence of alcohol or prohibited drugs; use the Vehicle for any race, contest, or off-road use, or to push or tow another vehicle; transport goods in violation of customs or other law; sublease, re-rent, or lend the Vehicle; or, for a self-drive booking, use the Vehicle to carry passengers or goods for hire (including any TNVS, taxi, or delivery-for-hire service). Using a private vehicle for hire without the proper franchise is a "colorum" operation and is prohibited.
11.3 Fines, tolls & violations
The Renter is responsible for all parking fees, tolls, traffic fines, and violations incurred during the rental, including those under no-contact apprehension programs, and shall answer for costs if the Vehicle is impounded or confiscated due to the Renter's act.
11.4 Cleanliness & conduct
12. With-Driver Bookings
For with-driver rentals, the Host provides the driver and the Renter does not operate the Vehicle; the driver requirements for the Renter (self-drive) do not apply. Liability for operating the Vehicle rests with the Host and the driver, except where loss or damage arises from the Renter's own misuse, negligence, or breach. The Host is solely responsible for ensuring that any with-driver service it provides complies with applicable transport and licensing regulations (including any franchise or accreditation required by the LTFRB for carriage for hire), and the Host indemnifies the Renter and Parada against any regulatory liability arising from the Host's driver service. Neither party may use the platform to operate an unlicensed public-transport service.
13. Host Warranties
The Host represents and warrants that:
- the Host owns or is duly authorized to lease the Vehicle, which has current LTO registration and a valid, active Compulsory Third-Party Liability (CTPL) policy as required by the Land Transportation and Traffic Code and the Insurance Code (RA 10607);
- the Vehicle is roadworthy, safe, and accurately described in the Listing; and
- the Host is offering a private vehicle for lease on a peer-to-peer basis and is not holding out as, and does not represent Parada as, an LTFRB-franchised rent-a-car or public-transport operator.
14. Protection Fee, Insurance & Damage
14.1 CTPL is limited
The Vehicle's CTPL (carried by the registered owner) covers only third-party death or bodily injury up to statutory limits. It does not cover damage to the Vehicle itself, the Renter, or third-party property damage. Comprehensive own-damage and theft coverage, where it exists, is separate.
14.2 Renter liability for loss or damage
Where any protection or insurance is denied, insufficient, or excluded — for example due to driving under the influence, an unauthorized or unlicensed driver, use for hire, or another breach of this Agreement — the Renter is liable to the Host for the loss or damage, up to the Vehicle's fair market value, independent of any amount recoverable from a protection program or insurer.
14.3 Claims
The Renter shall cooperate with any claim, including by securing a police report, providing the driver's license, and paying any applicable participation or excess fee. Parada facilitates but does not underwrite coverage and is not liable for the validity or outcome of any claim.
15. Accidents & Emergencies
In the event of a collision, crime, breakdown, or accident, the Renter shall ensure safety first, then immediately notify the police (where required), the Host, and Parada, and shall not leave the scene until a police report is prepared where one is warranted. Parada provides an in-app emergency (SOS) feature and, where configured, an emergency hotline for rental incidents. Failure to report an incident promptly or to cooperate with the Host and authorities may make the Renter fully liable for the resulting loss.
16. Post-Trip Disputes
After a rental is completed, either party may raise a dispute (for example, over damage, cleanliness, fuel, tolls, or late return) through the app within the post-trip dispute window shown in the app (currently seven (7) days after completion). The claiming party should submit evidence (Condition Record photos, receipts, reports). Because Parada collects no security deposit, disputed amounts are not deducted automatically; Parada reviews the evidence and mediates a resolution, and any amount owed is settled through the platform's dispute process. Parada's mediation is a facilitation and does not replace the parties' legal remedies.
17. Force Majeure
Neither party is liable for any failure or delay caused by events beyond its reasonable control, including typhoons, floods, earthquakes, fire, government-mandated lockdowns, civil unrest, strikes, power outages, or acts of war or terrorism. Where a Force Majeure Event prevents the rental, the parties shall coordinate a reschedule or a refund of the unused Rental Fee through Parada's standard process, and neither party shall claim further damages from the other.
18. Indemnification
Each party shall indemnify, defend, and hold harmless the other party (and, where applicable, Parada) from and against any third-party claims, losses, damages, liabilities, costs, and expenses (including reasonable attorney's fees) arising out of or relating to that party's breach of this Agreement, its negligence, or its willful misconduct.
19. Limitation of Liability
To the maximum extent permitted by Philippine law, Parada and its officers, directors, and employees shall not be liable for any indirect, consequential, special, incidental, punitive, or exemplary damages arising out of or connected with the use of any Vehicle, nor for valuables or property left in the Vehicle by the Renter, nor for any Force Majeure Event. Parada's cumulative liability in connection with a booking is limited to the amount the Renter paid to Parada for that booking. Nothing in this Section limits liability for death or personal injury caused by negligence, fraud, gross negligence, or willful misconduct, or any liability that cannot be excluded under Philippine law, including consumer rights under RA 7394.
20. Parada as Marketplace
Parada operates a technology platform connecting Hosts and Renters. Parada is not the owner or lessor of any Vehicle, does not own, control, operate, or drive any Vehicle, and is not a party to the lease. The rental is entered into directly between the Host and the Renter. Parada's role is limited to: (a) listing the Vehicle; (b) facilitating booking, payment, and Host payouts; (c) facilitating the protection/insurance fee; (d) documenting the Vehicle's condition; and (e) providing identity verification, support, and dispute facilitation. Consistent with the Internet Transactions Act, Parada verifies Hosts to a reasonable degree, acts on valid takedown or complaint requests, and offers an internal redress mechanism, and does not disclaim the responsibilities that Act imposes.
21. Data Privacy & Retention
Parada's processing of personal information in connection with this Agreement is governed by Republic Act No. 10173 and Parada's Privacy Policy, which also states how long records are kept. Rental records are retained for the periods set out in the Privacy Policy (including for tax, dispute-resolution, and — consistent with no-contact apprehension processes — the identification of the responsible party for traffic violations during the rental). A Host's access to a Guest's contact and license data ends about 30 days after completion, extended while a dispute is open.
22. Electronic Acceptance
This Agreement is entered into electronically. In accordance with Republic Act No. 8792 and its Implementing Rules, electronic acceptance — including requesting or confirming a booking, paying, approving a booking, or acknowledging a handover — has the same legal effect as a handwritten signature, and electronic records are admissible under the Rules on Electronic Evidence (A.M. No. 01-7-01-SC).
23. Governing Law
This Agreement is governed by and construed in accordance with the laws of the Republic of the Philippines.
24. Dispute Resolution & Venue
The parties shall resolve any dispute in the following sequence:
- Direct discussion via Parada messaging or email, in good faith.
- Parada-facilitated mediation. If unresolved within seven (7) calendar days, either party may request mediation at [email protected]. Parada facilitates and is not obliged to render a binding decision.
- Small Claims. Within the threshold under A.M. No. 08-8-7-SC, either party may file a small-claims case in the appropriate first-level court.
- Regular Courts. Otherwise, disputes may be brought before the competent courts of the Philippines, without limiting a consumer's recourse to the DTI. The proper venue is the court of competent jurisdiction as provided by law, without prejudice to the rules on venue for small-claims and consumer cases.
25. Severability & Entire Agreement
If any provision is held invalid, illegal, or unenforceable, the remaining provisions remain in full force, and the invalid provision is interpreted or limited to achieve, to the maximum extent permitted by law, the original intent of the parties.
This Agreement, together with the Parada Terms and Conditions, Refund & Cancellation Policy, Privacy Policy, and the booking confirmation, constitutes the entire agreement between the Host and the Renter for the booking. No oral representation or side agreement varies its terms unless accepted by both parties through the Parada platform.
By confirming a booking, the Renter (and, where applicable, the Host) acknowledges and agrees to all terms herein and consents to be bound. Questions? Email [email protected]. For data-privacy matters, contact [email protected]. Parada reserves the right to update this Agreement; the version effective at the time of a booking governs that booking.