Terms and Conditions

Rental Agreement for Freedom Car Rental, Hakuba

TRANSLATION DISCLAIMER: This is an English summary of our Terms and Conditions provided out of good will and for educational purposes only. As a company registered in Japan and running a car rental operation, a business heavily regulated under Japanese law, our actual terms and conditions are written in Japanese and are subject to interpretation under Japanese law. We do not guarantee that this English summary is exhaustive or up to date, and are providing it as mere guidelines to our Terms and Conditions in Japanese. Any disputes about our actual Terms and Conditions will be conducted in Japanese. Our Japanese Terms and Conditions are available here.

Chapter 1 General Rules

Article 1 (Application of Terms and Conditions)

1. The Lessor (hereinafter, “the Company”) shall rent a vehicle (hereinafter, “rental vehicle”) to the Lessee as per terms and conditions of this rental agreement (“Rental Agreement”) and the Lessee shall rent the rental vehicle. Matters not stipulated by this Rental Agreement follow laws or general practice.

2. The Company may accept a special agreement as long as it does not violate the intention of this Rental Agreement, laws, regulations and general practice. Such special agreement will supersede other terms and conditions of this Rental Agreement.

Chapter 2 Reservations

Article 2 (Making a Reservation)

1. After consenting to this Rental Agreement and the Company’s rental tariff, the Lessee shall clearly indicate the following items when making a reservation in the way designated by Company; Class of car, rental period, Lessee name, and other items listed in rental conditions. The Lessee may specify the need for accessories such as child seats and other leasing conditions (hereinafter referred to as “Leasing Conditions”).

2. Upon receiving a reservation from the Lessee, the Company may consent to rent the Lessee a rental vehicle possessed by Company. In this case, unless otherwise specifically approved by the Company, the Lessee shall pay the reservation fee as indicated by the Company.

Article 3 (Change Reservation)

The Lessee must obtain the consent of the Company before attempting to change the Leasing Conditions set forth in paragraph 1 of the preceding article.

Article 4 (Cancellation of Reservation)

1. The Lessee can cancel a reservation by the method designated by Company.

2. Unless the Company agrees otherwise, if the Lessee does not begin to conclude the Rental Contract within one hour of a reserved rental start time, the reservation is treated as cancelled.

3. If a reservation is canceled due to the circumstances of the Lessee, the Lessee shall pay the Company’s prescribed reservation cancellation fee to the Company as otherwise indicated. When the reservation cancellation fee has been paid, any remaining reservation application fee shall be returned to the Lessee.

4. If the reservation is canceled due to the circumstances of the Company, the Company will return the received reservation application fee to the borrower and pay the prescribed penalty.

5. If the Rental Contract is not concluded due to an accident, theft, non-return of the vehicle by a third party, recall, or any other reason not attributable to a natural disaster, the Lessee, or the Company, the reservation shall be cancelled. In this case, the Company shall return the received reservation application fee to the borrower.

Article 5 (Replacement Car)

1. If the Company is unable to rent a rental vehicle of the vehicle class reserved by the Lessee, the Company may offer the Lessee a rental vehicle of a different class to the reserved rental vehicle (hereinafter, “Replacement Car”).

2. If the Lessee accepts the offer described in Paragraph 1 above, the Company rents the replacement car to the Lessee with the same Rental as the time of booking, aside from the car class. In this case, the rental fee charged shall be the rental fee of the Replacement Car or that of reserved car, whichever is lower.

3. If the Lessee declines the offer described in Paragraph 1 above, the reservation is regarded as cancelled. In this case, if the non-provision of the reserved rental vehicle is due to reasons that should be attributed to the Company, the cancellation shall be handled in accordance with Article 4, Paragraph 4. If the cause is not attributable to the Company, Article 4, Section 5 shall apply.

Article 6 (Exemptions)

In cases where a reservation is cancelled or the Rental Contract is not concluded, neither the Company nor the Lessee shall make a claim aside from those designated in Articles 4 and 5.

Article 7 (Reservation Agency)

1. The Lessee can apply for a reservation at a reservation center, a travel agency, a partner company, or the like (hereinafter referred to as the “Agent”) who handles reservation work on behalf of the Company.

2. When a reservation has been made through the Agent as stipulated in Paragraph 1, the Lessee can apply to the Agent to change or cancel the reservation.

Chapter 3 Rental Fees

Article 8 (Conclusion of Rental Contract)

1. The Lessee shall specify the Lending Conditions as stipulated in Article 2, Paragraph 1, and the Company shall conclude a Rental Contract with the fee schedule and the like specified in the terms and conditions. However, this does not apply to cases where Lessee or driver falls in category of either Section 1 or Section 2 of Article 9 or there is no rental car that can be rented.

2. When not already submitted as prepayment, the Lessee pays the Company the rental fee specified in Article 11, Paragraph 1.

3. As instructed by MLIT, the Company shall request the Lessee to submit the driving license of driver designated by the Lessee (“Driver”), any other information required for the rental book as stipulated by MLIT, and may take copies of documents and licenses. The Lessee and Driver shall consent to these requests.

4. When concluding the Rental Contract, the Company may request the Lessee and Driver to provide documents for identification, such as a passport, in addition to a driving license, and may take a copy.

5. When concluding the Rental Contract, Company may request the mobile phone number, e-mail address or other contact information for the purposes of communicating with the lessee and/or Driver.

6. The Company may require the Lessee to pay with a credit card or cash, or designate other payments when concluding the Rental Agreement.

Article 9 (Rejection of Lessee)

1. The Rental Contract cannot be concluded if either the Lessee or Driver falls in one of below categories.

(1) Neither the Lessee nor Driver carries a driving license that that is valid in Japan for driving the rental vehicle. Alternatively, the Lessee or Driver does not produce the driving license or agree to the copying of the driving license.

(2) The Lessee or Driver is identified as under the influence of alcohol.

(3) The Lessee or Driver is identified as being under the influence of drugs, stimulants, or other substances.

(4) The Lessee or Driver is accompanied by passengers under the age of 6 years old but has no child seat.

(5) The Lessee or Driver is identified as a member of criminal organization.

2. The Company may refuse to conclude Rental Contract if either the Lessee or Driver belongs to one of the following categories.

(1) The Driver identified at the time of reservation differs from the Driver confirmed when concluding Rental Contract.

(2) The Lessee or Driver has not paid the rental fee for a previous rental in a timely manner.

(3) The Lessee or Driver has committed an act listed in Article 17 with respect to previous rental.

(4) With respect to the previous rental (including rentals by other rental car operators), when expenses stipulated in Article 18 Paragraph 5 were unpaid or acts listed in Article 23 Paragraph 1 were committed.

(5) During a previous rental, actions of the Lessee or Driver in violation of the Rental Agreement or insurance policy resulted in an invalidation of automobile insurance.

(6) When other companies find it inappropriate.

(7) The Lessee or Driver does not fulfill the designated conditions of other related parties.

3. Any reservation made by the Lessee that cannot be concluded as per Section 1 above or is refused by the Company as per Section 2 is regarded as cancelled at the convenience of the Lessee, the Lessee shall pay cancellation fee designated by Company without delay, and the Company shall refund the reservation fee after subtracting the cancellation fee.

Article 10 (Execution of Rental Contract, etc.)

1. When the Lessee has signed the Rental Contract, paid the fee to the Company, and the Company has delivered the rental vehicle to the Lessee, the Rental Contract is regarded as concluded. In this case, any reservation fee already received by Company as well as the face value of any coupons submitted to Company by the Lessee are to be applied to a part of rent payable.

2. Delivery of the vehicle as described in Section 1 takes place at the time designated in Article 2 Paragraph 1. Unless previously agreed otherwise, all rental vehicles shall be collected at and returned to the rental location, Hakuba Showa Shell Filling Station. 2.

Article 11 (Rental Fee)

1. The rental fee shall mean the following total amount, and the Company shall clearly indicate each amount or calculation basis in the fee table.

(1) Basic fee

(2) Insurance Waiver Fee

(3) Special Equipment Fee

(4) One-way Fee

(5) Fuel Fee

(6) Car Delivery Fee

(7) Other Fees

2. The basic fee is the fee the Company reports to the manager of the District Transport Nagano Bureau, when the rental vehicle is rented.

3. If the Company revises the rental tariff after a reservation has been made as described in Article 2, the rent in question is either the rent at the time of reservation or the amended tariff at the time when the rental period commences, whichever is lower.

Article 12 (Changes to Rental Conditions)

To change Rental Conditions in Article 8, Paragraph 1 after concluding the Rental Contract, the Lessee must get prior consent from the Company. However, if there is a hindrance to the lending business due to such changes in lending conditions, the Company may refuse this change.

Article 13 (Inspection and Confirmation)

1. The Company shall carry out inspections required by Section 2 of Article 47-2 (Daily Inspection and Maintenance) and Article 48 (Regular Inspection) of Road Transport Vehicle Act. The Company shall rent the rental vehicle after such inspections and the necessary maintenance.

2. The Lessee or Driver shall check that the inspection and maintenance described in the preceding paragraph has been carried out, inspect the car body appearance and accessories based on a separate inspection form, and confirm that the rental car has no maintenance issues and that the Rental Contract is satisfied.

3. When improper maintenance is discovered by the confirmation in the preceding paragraph, the Company shall promptly carry out any necessary maintenance.

Article 14 (Issuance of Rental Certificate)

1. When the rental vehicle is delivered, the Company shall issue a designated rental certificate to either the Lessee or Driver. The Company shall fill in items of the rental certificate designated by the Director of the District Transport Bureau.

2. The Lessee or Driver shall carry the rental certificate issued in accordance with the preceding paragraph while using the rental vehicle.

3. If the Lessee or Driver loses the rental certificate, the Lessee or Driver shall immediately notify the company to that effect.

4. The Lessee or Driver shall return the rental certificate to the Company when returning the rental car.

Chapter 4 Usage

Article 15 (Care and Custody)

Either the Lessee or Driver shall use and keep the rental vehicle with due attention during the Usage Period until the rental vehicle is returned.

Article 16 (Daily Inspection)

The Lessee or Driver must carry out daily maintenance defined by Section 2, Article 47 (Daily Inspection) of Japanese Road Vehicle Transport Art and perform necessary maintenance before using the rental vehicle every day.

Article 17 (Prohibited Conduct)

The Lessee and Driver shall not perform the following conduct during use.

(1) Use the rental vehicle for a transportation business or similar purposes without prior consent from the Company and permission under the Road Transport Act.

(2) Utilize the rental vehicle for purposes other than those specified, including allowing someone (other than the Driver indicated in in Article 18, Paragraph 3 of the Rental Certificate to drive the rental vehicle.

(3) Acts which violate the Company’s rights, such as sub-leasing or using the rental vehicle as collateral.

(4) Modify the original condition of the rental vehicle, such as altering the number plate or other vehicle identification or altering, remodeling, or converting the rental vehicle.

(5) Use the rental vehicle for testing, racing, or for towing or pushing other vehicles without prior consent from the Company.

(6) Use the rental car in violation of laws or public order and morals.

(7) Arrange separate insurance for the rental vehicle without Company’s prior consent.

(8) Take the rental vehicle outside Japan.

(9) Other acts that violate the Rental Conditions of Article 8 Paragraph 1.

Article 17 (Illegal Parking)

1. If either the Lessee or Driver commits a parking offence (as designated by the Japanese Road Traffic Act) during the Usage Period of the rental vehicle, s/he shall appear at the police station, pays the penalty therefor without delay, and bear any costs for towing, storage, and pick-up.

2. If the Company receives information from the police regarding illegal parking of the rental vehicle, the Company shall inform either the Lessee or Driver to instruct him/her to move the rental vehicle and appear at the police station before expiry of the Rental Contract (or by the time designated by Company) to settle the illegal parking issue. Either the Lessee or Driver shall follow the Company’s instructions. When a rental vehicle has been moved by police, the Company may collect the rental vehicle at its own discretion.

3. After giving instruction as per the preceding paragraph, the Company may consider an illegal parking process by notice of traffic violation, payment notice, acknowledgment of receipt, etc. on the Company’s judgment. If either Lessee or Driver fails to proceed with an issue regarding illegal parking, s/he shall pay the Company an illegal parking penalty (designated by the Company) without delay. If judged necessary, the Company may request either the Lessee or Driver to sign a letter of acknowledgment.

4. If judged necessary, the Company may cooperate with police to pursue either the Lessee’s or Driver’s responsibility for illegal parking and provide police with the Rental Certificate or personal information on the Lessee or Driver. Moreover, the Company may submit materials (such as letter of explanation specified by Paragraph 6, Article 51 of Road Traffic Act, an acknowledgement letter, the Rental Certificate) and report facts as the Company sees them.

5. If the Company receives an order for payment of neglected fine in accordance with Article 51-4, Paragraph 1 of the Road Traffic Act, the Company may bill the Lessee for the fine and any additional costs involved with the processing of a parking violation. In the event of incurring the expenses required collection, the Company shall charge the Lessee for the following amounts (hereinafter referred to as “parking violation related expenses”). (1) Amount equivalent to neglected fines (2) A parking breach penalty set separately by the Company (3) expenses required for searching, moving, storing and taking over the vehicle, and the like.

6. In cases where the Lessee or Driver has to pay a penalty for illegal parking in accordance with the provisions of Paragraph 1 but the Lessee or Driver does not respond to the Company’s instructions to process the violation according to Paragraph 2 or Company’s request to sign the letter of acknowledgement based on Paragraph 3, the Company may apply for a parking penalty of an amount specified by the Company (referred to as “parking violation fee” in the following paragraph) from the Lessee or Driver as set forth in Paragraph 5.

7. After the Lessee or Driver has paid the parking violation fee to the Company based on the preceding paragraph, the Company shall return any excess or fees temporarily imposed by the Japanese Police to the Lessee or Driver once other parking violation related expenses have been subtracted.

Chapter 5 Returning the Rental Vehicle

Article 19 (Responsibility to Return)

1. The Lessee or Driver shall return the rental vehicle to the Company at the designated return location by the expiration date of the rental period.

2. If the Lessee or Driver violates the preceding paragraph, all damages caused to the Company shall be compensated.

3. If the Lessee or Driver cannot return the rental vehicle within the rental period due to natural disasters or other force majeure, the Lessee or Driver will immediately contact the Company and follow the instructions of the Company. No damages incurred to the Company shall be borne by the Lessee or Driver.

Article 20 (Confirmation of Return of Rental Vehicle)

1. The Lessee or Driver shall return the rental vehicle and equipment in the presence of the Company. When doing so, the rental vehicle shall be restored to the condition at the time of delivery, excluding deterioration due to normal use and worn parts.

2. Either the Lessee or Driver shall return the rental vehicle and equipment after confirming that the Lessee, Driver and any passengers have left no personal artifacts inside the rental vehicle. The Company is not responsible for any personal artifacts left in a rental vehicle.

3. If there is an unpaid rental fee, the Lessee shall complete the settlement before returning the rental vehicle.

Article 21 (Fee for Rental Period Extension)

1. If the Lessee or Driver changes the rental period in accordance with Article 12, the Lessee shall pay the rental fee corresponding to the changed rental period.

2. If the Lessee or Driver returns the rental vehicle after extending the rental period without obtaining the consent of the Company in accordance with Article 2, in addition to the fee in the preceding paragraph, a penalty of double the excess fee according to the excess time shall be paid.

Article 22 (Return Location, etc.)

1. If the Lessee or Driver changes the designated return location pursuant to Article 12, the Lessee or Driver shall bear any cost for forwarding required due to the change in return location.

2. If the Lessee or Driver returns the rental vehicle to a place other than the designated return location without obtaining the consent of the Company in accordance with Article 12, the Lessee or Driver will pay twice the cost of forwarding as a penalty for changing the return location.

Article 23 (Failure to Return Rental Vehicle)

1. If the Lessee or Driver does not return the rental vehicle and equipment to the rental location at the expiry of the Rental Contract, does not respond to the Company’s request to return the rental vehicle and/or any equipment, and/or the Lessee’s location is unclear, the Company may take action under civil and criminal codes, in addition to reporting to the National Rental Vehicle Association about damage incurred.

2. In the case of the preceding paragraph, in order to confirm the location of the rental car, the Company shall take necessary measures, including disclosure of personal information and contacting the Lessee or Driver’s family, relatives, workplace, co-workers, etc.

3. When Paragraph 1 applies, the Lessee or Driver will be responsible for compensation for damages caused to the Company pursuant to Article 28, as well as collecting the rental vehicle and searching for the Lessee or Driver.

Chapter 6 Breakdown, Accident, Theft

Article 24 (Response to Defects)

If either Lessee or Driver discovers a defect or breaks down while using the rental vehicle, s/he shall stop driving without delay, communicate with Company, and follow the Company’s instructions.

Article 25 (At Time of Accident)

1. If the Lessee or Driver has an accident involving the rental vehicle, perform the legally required actions regardless of the size of accident, and also take the actions indicated below:

(1) Inform the Company of the accident without delay and follow the Company’s instructions.

(2) If instructed by the Company to have the rental vehicle repaired as per item (1) above, the Lessee or Driver shall have the rental vehicle at a facility designated by the Company unless agreed otherwise.

(3) Cooperate with the investigation of the Company as well as Company’s contracted insurance company regarding the accident and submit documents required by the Company without delay.

(4) Obtain prior consent from the Company before talking with or making any agreements with other parties regarding the accident.

2. In addition to actions described in Section 1, either the Lessee or Driver is responsible to deal with and resolve the accident.

3. The Company shall provide advice on handling the accident to the lessee or Driver and cooperate toward resolution.

Article 26 (Theft)

The Lessee or Driver shall take the following measures if the rental vehicle is stolen during use or otherwise suffers third-party damaged.

(1) Immediately report to the nearest police station.

(2) Inform Company of the situation and follow the Company’s instructions.

(3) Cooperate with the investigation of the Company and insurance companies with which the Company has contracts regarding theft and other damages, and submit necessary documents without delay.

Article 27 (Termination of Rental Contract due to Vehicle Situation)

1. If the rental vehicle becomes unusable during the Rental Period due to a defect, accident, theft, or other causes (hereinafter simply “Defect”), the Rental Contract shall be terminated.

2. If Paragraph 1 above applies, the Lessee or Driver shall bear the expenses required for picking up and repairing the rental car, and the Company will not return the received rental fee. However, this shall not apply if the failure is due to the reason specified in Paragraph 3 or Paragraph 5.

3. If the Defect is due to a problem that existed before the rental, the Lessee shall be able to receive a replacement vehicle from the Company. The provision conditions for the replacement vehicle is the same as those in Article 5, Paragraph 2.

4. If the Lessee does not receive a replacement vehicle according to the preceding paragraph, the Company will return the entire rental fee received. The same shall apply when the Company cannot provide a replacement car.

5. In the event that a breakdown, etc. occurs due to any reason that cannot be attributed to either the Lessee, the Driver, or the Company, the Company will be responsible for the period from the received rental fee until the Rental Contract is terminated. Any balance after deducting the corresponding rental fee shall be returned to the Lessee.

6. Except for the measures set forth in this Article, the Lessee or Driver shall not be able to make any claims to the Company for damages due to the Lessee or Driver’s inability to use the rental vehicle.

Chapter 7 Compensation and Indemnification

Article 28 (Compensation and Operational indemnification)

1. If the Lessee or Driver causes harm or damage to a third party or to the Company while driving the rental vehicle, the Lessee or Driver shall pay compensation for the damage, except for cases where the Company itself is responsible.

2. In light of damages incurred to the Company as per Paragraph 1, the Non-Operational Charge (NOC) listed in the rental tariff shall be applied for damages due to accident, theft, and defects for which the Lessee or Driver is responsible, as well as for damage to the rental vehicle that renders the vehicle unusable due to grime, odor, and the like. Either the Lessee or Driver shall pay the Non-Operational Charge to Company without delay.

Article 29 (Insurance and Indemnification)

1. If the rental vehicle suffers an accident while in use, insurance payouts shall be capped to the following amounts (“Capped Indemnification”) that are to be paid through an insurance contract arranged by Company or the Company’s compensation system for the rental vehicle. However, this insurance money will not be paid if there is a reason causing exemption from the insurance policy.

(1) Third-Party Injury: Unlimited per person (this includes payouts made by compulsory automobile liability insurance.)

(2) Damage to Third-Party Vehicles and Property: Unlimited (with a deductible of 50000 yen to be paid by the Lessee)

(3) Damage to Rental Vehicle: Market value of vehicle per accident (with a deductible of 50000 yen to be paid by the Lessee)

(4) Personal Injury of Rental Car Passengers: Up to ¥30 million for death, residual disability and injury.

2. If the police and the Company have not been notified of the accident, or if the Lessee or Driver violates this Rental Agreement, the insurance money specified in the preceding paragraph will not be paid.

3. Damages for which insurance money is not paid and damages exceeding the amount of insurance paid under the provisions of Paragraph 1 shall be borne by the Lessee or Driver.

4. If the Company pays damages to another party that are to be borne by the Lessee or Driver, the Lessee or Driver shall immediately reimburse the Company.

5. For damages covered by the insurance waiver fee stipulated in Paragraph 1, if the Lessee has paid the insurance waiver fee to the Company in advance, such damages will be borne by the Company except for the case of a self-caused, single vehicle accident. If the insurance waiver fee has not been paid, damages will be borne by the Lessee or Driver.

6. An amount equivalent to the insurance premium of the insurance contract specified in Paragraph 1 is included in the rental fee.

Chapter 8 Cancellation of Rental Agreement

Article 30 (Cancel Rental Agreement)

If either Lessee or Driver violates the terms and conditions of Rental Contract while using the rental vehicle or falls in category in any of Section 1 or Section 2 of Article 9, the Company is entitled to cancel the Rental Contract without notice and request the rental vehicle be returned. In such this, either the Lessee or Driver is obliged to return the rental vehicle and any rental equipment to the Company without delay and pay any outstanding fees without delay to Company. In this case, the Company shall not return the received rental fee to the Lessee.

Article 31 (Cancellation Before Completion

1. The Lessee can terminate the Rental Contract before expiry with the Company’s consent and with a termination fee listed below. The lessee shall pay the following termination fee at termination of Rental Contract.

Termination fee = [(Basic charge for rental period designated by Rental Contract) – (Basic charge applicable for period from start of rent to return of the rental vehicle)] x 50%

1. The Lessee can terminate the Rental Contract before expiry with the Company’s consent and with a termination fee listed below. The Lessee shall pay the following termination fee at termination of Rental Contract. In this case, the Company shall return the remaining amount after deducting the rental fee for the period from the start of rental from the received rental fee to the Lessee. The number of days for which a rental fee is returned shall be capped at half the entire Rental Period.

2. When canceling according to the preceding paragraph, the Lessee shall pay the following mid-rental cancellation fee to the Company. Mid-rental cancellation fee = {(basic charge corresponding to the rental contract period)-(basic charge corresponding to the period from lending to return)} x 50%.

Chapter 9 Miscellaneous

Article 32 (Offsetting)

If the Lessee or Driver has a monetary obligation to the Company pursuant to these Terms and Conditions, the Company may offset this against a monetary obligation of the Company to the Lessee or Driver at any time.

Article 33 (Consumption Tax)

The Lessee shall pay the Company the consumption tax imposed on the transaction based on this Rental Agreement.

Article 34 (Delayed Damages)

If the Lessee or Driver and the Company fail to fulfill their monetary obligations under this Rental Contract, late damages shall be paid to the other party at an annual rate of 14.6%.

Article 35 (Proxy Lender)

When another business operator (hereinafter is referred to as the “Proxy Rental Operator”) rents a rental car on behalf of the Company, the term “the Company” in this Rental Agreement in the provisions of this Rental Agreement shall be read as “Proxy Rental Operator”.

Article 36 (Bylaws)

1. The Company may stipulate bylaws of this agreement separately, and such bylaws shall have the same effect as this agreement.

2. When bylaws have been established, The Company shall display the bylaws at the Company’s sales offices, and describing the bylaws in the pamphlet and price list issued by the Company. The same applies if the bylaws are changed.

Article 37 (Court of Jurisdiction)

If a dispute arises regarding the rights and obligations under this Rental Agreement, the court with jurisdiction over the location of the Company shall be the court of jurisdiction.

Supplementary Provisions: This agreement will be implemented from October 1, 2018.

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