Is the 'Lost Car Compensation Agreement' for Mortgaged Vehicles Valid?

[Cox]

Mortgaged vehicle lost car compensation agreement is valid. The parties involved have the corresponding civil capacity and civil conduct capacity, and are entitled to voluntarily enter into contracts according to law. If the content of the contract does not violate legal provisions, the contract is legally valid. Introduction to lost car compensation for mortgaged vehicles: Mortgage refers to the situation where the debtor or a third party does not transfer the possession of the property (i.e., the car) but uses the property as a guarantee for the creditor's rights. If the debtor fails to fulfill the debt, the creditor has the right to preferentially obtain compensation by converting the property into money or by auctioning or selling the property according to the provisions of this law. Principle of mortgaged vehicle compensation: In simple terms, it means that Party A's car is mortgaged to Party B as a form of guarantee. When a car is used as collateral, it is referred to as a mortgaged vehicle.