Contracts with others driving your car

[Unreal03]

My aunt informed me that she has two cars both under her name. She wants to lend one of her cars to her sister. However, she wants her sister to be completely liable ( with a writing contract) as she borrows the car.

In short,

The aunt wants to let her borrow the car for a year still under her name, while letting somone else drive it for that year period. If a contract is made, can it be enforceable?


If worst comes to worst, can my aunt be completely protected in case of an accident or theft? Would love to hear suggestions

 

[fredrikklaw]

Sell and buy it back, or ...

There really is no need for such a contract or agreement, as her sister driving the car with the aunt's consent for the 12-month period while covered by her own insurance will have exactly the same effect as drawing up a contract to say the obvious.

Because as long as your aunt's name is connected to the vehicle in any shape or form, no amount of contracting and covenanting is going to shield her completely from liability because in the event a plaintiff is unable to collect from the sister due to whatever reason, be it no insurance, flight, bankruptcy protection and such, then he will go after all others whose names are somehow connected with the car.

My suggestion would be for your aunt to completely transfer ownership of the car to her sister by sale or by gift or donation for the desired period with your aunt exercising an option to have her ownership rights restored on expiration of the 12-month period by either a buy back of the vehicle or whatever other predetermined means.

That is THE only way that she (your aunt) will not have the risk of liability hanging over her head while the car is out on loan to her sister.

fredrikklaw