Hire-Purchase of a Car through a Finance Company
This agreement made
at .................. This ................... Day of ............. 2000,
between a ................... (hereinafter called the owner) of the first part
and b ................... (hereinafter called the hirer) of the second part and
c ................... (hereinafter called the dealer) of the third part.
Whereas the hirer is
desirous to purchase a car and he has approached the dealer to sell the car to
him and to arrange the finance for the purchase of the car.
And whereas the dealer
after satisfying about the creditworthiness of the hirer, has requested the owner
to purchase the car more particularly described in the schedule hereto
(hereinafter called the said car), in order to let the same to the hirer under
a hire-purchase agreement.
And whereas the owner
has acquired the said car from the dealer for the abovementioned purpose and in
consideration of the above, the dealer has agreed to guarantee the payment of
the hire by the hirer in accordance with the terms of hire-purchase agreement.
Whereby it is agreed
between the parties as follows:
owner shall let and the hirer will take on hire the car more particularly
described in the schedule on the following terms and conditions.
hirer shall pay to the owner on the execution of these presents for the option
to purchase herein contained the sum of rs ............ And for which credit
will be given if the said car be purchased in accordance with the terms of this
agreement and will pay to the owner at his address for the time being and without
demand the sum of rs ............ Every calendar month by way of rent for the hire
of the said car, the first payment to be made on the ......... Day of
............. And each subsequent payment on the 10th day of every succeeding
hirer during the continuance of the hiring, will not sell, assign, pledge,
mortgage, underlet, lend or part with the possession of the said car or
otherwise deal with the said car and will not take the same out of the city of
............. Without the previous consent in writing of the owner.
hirer during the continuance of the hiring shall keep the said car in good
repair condition and working order (reasonable wear and tear excepted) and will
permit the owner, his servants or agents to have access to the said car for the
purpose of inspecting the condition thereof. The hirer shall pay all licence
fees, road tax, fees and duties payable in respect of the said car.
said car shall be insured by the hirer in the joint names of the owner and the hirer
against loss or damage by fire, accident, third party risks and riot risks in
the sum of rs............. With the insurance company ltd. And the hirer shall
pay punctually the premiums and all moneys payable in respect of such
hirer may at any time terminate the hiring by returning the said car at his own
cost and risk to the owner at his place of address for the time being.
the hirer shall make default in payment of any monthly sum payable hereunder
for ............ Days after the same shall have become due or shall fail to
observe the terms and conditions of this agreement or if the hirer becomes
bankrupt or a receiver is appointed of his property or if distress or execution
is levied against his property or if the hirer shall do or cause to be done or
permit or suffer any act or thing whereby the owner's rights in the said car
may be prejudiced or put in jeopardy, the owner may without prejudice to the owner's
claim for arrears of hire or damages for breach of this contract, terminate the
hiring without notice and retake possession of the said car and it shall be
lawful for the owner, his agents or servants to enter upon any premises where
the said car may be and seize and take possession thereof. And on determination
of the hiring as aforesaid the hirer will remain liable for the arrears of
hire, payment or for damages for breach of this agreement and the owner may
enforce such claim by action or otherwise.
hirer shall use the said car for his private use only and will not allow the same
to be used as a taxi or for commercial purpose.
hirer has examined or has caused to be examined the said car and satisfied
himself as to its condition and running and no warranty is implied on the part
of the owner as to the quality or state of the motor vehicle as to its fitness
for any purpose, whatsoever.
hirer and the guarantor shall execute by way of collateral security a
promissory note with joint and several liability in favour of the owner for
total hire payable for the said car and in the event of the hirer making a
default in payment of any sum due under this agreement, the owner shall be
entitled to transfer or negotiate the said note and the transferee or holder
shall take the said note free from equities and defences as a holder in due
hirer will be liable to pay all taxes, rates, levies, licence fees or any other
charges, fines or imposition levied by the government or local body or other
authority in respect of the said car and on this transaction.
owner agrees to permit the hirer to have the registration of the said car in
his own name in terms of the provisions of motor vehicles act, 1988 and the rules
framed thereunder; provided that the hirer shall transfer the registration of
the said car in the name of the owner whenever demanded by the owner to do so.
agreement is personal to the hirer and the rights of the hirer shall not be
assignable in favour of third party.
the hirer shall duly perform and observe all the stipulations and conditions in
this agreement contained on his part to be performed and observed and shall pay
to the owner monthly sums by way of rent amounting together with the sum paid
for the option to purchase to the sum of rs.............. And shall also pay
all other sums of money which may become payable to him by the hirer under this
agreement, the hiring shall come to an end and the said car shall become the properly
of the hirer and the owner will assign and make over all his rights and interest
in the same to the hirer but until all such payments as aforesaid have been
made, the said car will remain the property of the owner.
delay, neglect, indulgence or forbearance on the part of the owner in enforcing
any terms or conditions of this agreement shall not prejudice the strict rights
of the owner hereunder.
consideration of the owner letting the said car to the hirer as hereinabove,
the surety hereby guarantees the due payment of the rents and all other sums of
money which may become payable by the hirer under these presents and the performance
and observance of the said agreements and conditions by the hirer and the surety
agrees that this guarantee will not be prejudiced by the owner neglecting or
for- bearing promptly to enforce this agreement against the hirer or giving
time for the payment of the rents when due or delaying to take any steps to
enforce the observance or performance of the said agreement.
notices required to be given herein shall be given to the parties hereto in
writing and by either registered post acknowledgment parties due or by hand
delivery at the addresses above mentioned or at such other addresses as the parties
hereto may hereafter substitute by notice in writing.
is agreed by and between the parties that this agreement shall be subject to
the jurisdiction of the civil courts of .................
In witness whereof,
the parties have hereunto set and subscribed their respective hands on the date
and year above mentioned.
Signed and delivered
by the within named owner
Signed and delivered
by the within named hirer
Signed and delivered
by the within named surety