A car purchase agreement is governed by the general provisions of the Civil Code (Act No. 89/2012 Coll.). The law does not prescribe any mandatory form for the sale of movable property such as a motor vehicle; it is therefore all the more important that the agreement contains all essential details and leaves no room for future disputes. The following overview summarises what must definitely be included in such an agreement, whether you are drafting it from scratch or using a ready-made template.
Contracting parties
For both the seller and the buyer, the contract must state the first name, surname, date of birth or personal identification number, and permanent address. If either party acts as a business operator, their IČO and registered office are also added. For foreigners, another identifying detail according to the type of identity document is used instead of the personal identification number. It pays to verify the details directly against an ID card or other proof of identity, not just based on what the party dictates themselves, this prevents later ambiguities should the contract need to be submitted for vehicle transfer or elsewhere.
Vehicle identification
The vehicle is uniquely identified by the following data: VIN, manufacturer and model, registration number (SPZ), colour, year of manufacture and the current odometer reading on the day of signing. It is also useful to include further details from the technical certificate, such as engine capacity or fuel type, especially if there are multiple versions of the same model. The more precisely the contract describes the vehicle, the less room remains for ambiguity regarding which vehicle was involved should the parties later disagree on something.
Price and payment method
The purchase price should be stated in both figures and words, and the contract must clearly specify the payment method, cash, bank transfer, or a deposit with a deadline for the balance. It is also advisable to state when the price is considered paid (e.g., upon crediting the account, not merely upon sending the payment), and if paying by instalments or providing a deposit, the specific dates for each payment should be included.
Declaration of defects and vehicle condition
The contract should include a declaration by the seller regarding the vehicle's condition and whether they are aware of any specific defects. In practice, liability for defects in used vehicles is handled variously, ranging from full seller liability to an "as is" sale. It is advisable to also list any specific deficiencies identified by the buyer during inspection within the contract, so it is clear what the buyer is accepting. We recommend consulting a specialist or lawyer on the precise wording that suits your specific situation to ensure it is legally sound and does not expose either party to unnecessary risk.
Vehicle handover
Finally, the contract should specify the date and place of vehicle handover and list what is being transferred together with the vehicle, keys (including spares), the technical certificate, service book, and any accessories such as winter tyres or car extras mentioned in the advertisement. It is advisable to draw up a short handover protocol signed by both parties directly at the time of transfer, which also records the current odometer reading.
Form and signatures
The law on vehicle sales does not require notarisation or any other special form; however, it is strongly recommended to draw up the agreement in writing and have it signed by both parties, including the date and place of signing. A written agreement also facilitates the subsequent transfer of ownership at the authority, where the contract serves as proof of acquisition. It is practical to prepare at least two identical copies, one for the seller and one for the buyer, or an additional copy if you need to submit it elsewhere besides the vehicle registration office.
Before signing the contract, it is worthwhile to thoroughly inspect the vehicle itself and, after signing, not to forget about the timely transfer of ownership. We cover both topics in separate articles.