Agreement of Hire
Purchase of a Motor Truck
This Agreement made
at ....... this ...... day of ...... between M/s. A B C and Co., a partnership
firm by its authorised partner Mr........ and having its office at ........
hereinafter referred to as the Dealer of the one part and M/s. XYZ Transport
Company Limited. a company registered under the Companies Act, 1956 and having
Its registered office at ....... . here in after referred to as the Company of
the other part.
Whereas the Dealer
Firm is a dealer in transport vehicles manufactured by M/s ........ and carries
on the business of selling, buying, giving on hire, transport vehicles of
different makes and capacities.
And Where as the
company is carrying on the business of transporting goods by motor trucks in
And Whereas the
Company has offered to the Dealer to supply one motor truck to the Company on
hire purchase basis which the Dealer has agreed to do on the following terms
And Whereas the
Company has selected the motor truck having a load carrying capacity of
........ tons and particulars of the truck as to the registration number,
chassis number, make etc. are given in the schedule hereunder written. The said
motor truck is hereinafter referred to 'as the said vehicle'
Now it is agreed by
and between the parties hereto as follows –
Dealer gives on hire and the Company takes on hire the said vehicle as from the
date hereof on the followings terms and conditions. The said vehicle has been
thoroughly inspected by the company's representative and is accepted to be in
good working or running condition and the company has taken possession thereof.
period of hire shall be ..... months from the date hereof subject to the hire
being liable to earlier termination as hereinafter provided.
Company shall pay as and by way of hire charges a sum of rupees ....... per
month in advance. The proportionate hire charges for the current month upto the
last date of the next month namely rupees . . .... have been paid by the
company to the Dealer on the execution of this agreement. (and the receipt
thereof Is admitted by the Dealer) and the further hire charges will be paid on
or before the fifth day of each English Calendar Month. The first of such
payment to be made on or before fifth day of the next following month and
subsequent payments to be made on or before the fifth day of each and every
succeeding month during the said hire period.
if at the end of the said period or at any earlier time the Company pays the
sum of rupees.... being the price of the said vehicle including taxes and other
charges less the aggregate of the monthly hire charges actually paid by the
company to the Dealer, the company shall have the option to purchase the
vehicle by giving one months notice prior to the expiration of the said period
and on the payment of such amount as agreed and exercising the said option the
Company shall be deemed to have purchased the vehicle and become the full owner
before the end of the said hire period the company does not exercise the said
option to purchase then on the expiration of the said period or if this
agreement is terminated earlier as hereinafter provided then on the termination
of the agreement the company shall return the vehicle in good working order to
the Dealer forthwith falling which the company will be liable to pay as
liquidated damages a sum of rupees ..... per day till the vehicle is delivered
to the Dealer as aforesaid or taken possession by the Dealer under the power
given to him as hereinafter mentioned.
Company covenants and undertakes that during the said hire period
a. the Company shall use
the vehicle with all care as a prudent man would do and keep the same In good
condition In repairs and running order
b. the Company shall not
transfer the vehicle by way of sale or by, hypothecation pledge or otherwise or
part with possession thereof In any manner whatsoever.
c. The Company shall pay
all taxes and other dues payable in respect of the said vehicle payable to
Government or any other authority duly and punctually and will not allow the
vehicle to be attached or seized for recovery of such dues.
d. The Company shall
while transporting goods see that proper octroi duty is paid at every octroi
naka on the goods transported and will not allow the vehicle to be detained by
the octroi authority for non payment or for any other illegal act.
e. The Company shall not
carry or transport through the vehicle any smuggled or otherwise objectionable
f. The Company and its
driver shall observe and perform all the rules and the regulation applicable to
such vehicle regarding delivery. transporting of goods or otherwise.
g. The Company shall
obtain necessary permits for taking the vehicle to any part of the country as
required by law and shall not take the vehicle to any State without such
h. The Company shall not
allow the vehicle to be driven by an unlicensed driver or by a driver of less
than two years experience and holding a clean licence. to drive.
i. The Company shall
keep the Dealer always informed in writing of the movements of the said vehicle
from time to time.
j. The Company shall
allow the Dealer or his representative to take inspection of the vehicle at any
time and at any place.
k. The Company shall
always keep the said vehicle insured as required endorsed in favour of the
Dealer and will be handed over to the Dealer.
l. If has a result of
any accident the vehicle is damaged the company shall repair the damage
properly. Any accident suffered by the said vehicle shall be immediately
communicated in writing to the Dealer and the insurance claim shall be lodged
with the Insurance Company in proper time.
m. The Company shall
indemnify and keep indemnify the Dealer against all claims for damages or loss
due to accident or otherwise either to the said vehicle given on hire or to any
other vehicle or to any person or persons and against all costs charges and
expenses on account of such claims incurred or suffered by the Dealer.
it is further agreed that until the company exercises the option to purchase,
the ownership of the vehicle will remain with the Dealer. The vehicle will be
remaining in the same name in which it is now registered and registration will
not be changed. This hire purchase agreement will be noted in the Register as provided
by the Motor Vehicle Act.
is further agreed that if the company makes default in payment of any monthly
hire charges on the due date thereof or commits breach of any covenant term or
condition herein contained or If the company is ordered to be wound up by Court
or goes Into voluntary liquidation or the said vehicle is attached by
Government or any other authority or any creditor or otherwise or a receiver Is
appointed thereof by any Court then and in any of the said events the Dealer
will have the option to terminate this agreement by giving fifteen days prior
notice In writing to the Company and on the expiration on such notice period
this agreement shall be deemed to be terminated.
on the expiration of the hire period or earlier termination thereof as
aforesaid (and the company not having exercised the option to purchase before)
the Company shall forthwith handover the said vehicle to the Dealer at Its own
costs and at the office premises of the Dealer failing which the Dealer will
have the right to take possession of the said vehicle where it is by force and
if pot possible through Court and the Company will be liable to pay all costs,
charges and expenses Incurred by the Dealer in taking such possession.
at the time of delivery or taking possession of the said vehicle as aforesaid
the vehicle is not in working condition or has suffered damages all the costs
incurred by the Dealer In getting the vehicle repaired and brought in running
condition will be payable by the Company and the Company hereby covenants to
pay the same.
the said vehicle suffers any accident of whatsoever and by reason thereof, the
vehicle goes beyond repairs or if the vehicle is destroyed by fire or accident
during the hire period or if the vehicle is forfeited or sold by any authority
in exercise of any lawful power then the company will be liable to pay to the
Dealer the said amount of rupees ... mentioned in clause 4 above less the hire
charges paid by the Company and the moneys if any received from the insurance Company
by the Dealer and the Company covenants to pay the same forthwith on demand
with interest at ..... per cent. per annum till payment.
In witness whereof
the parties have put their hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED
Signed for and on
of M/s A B C and Co.
by Mr .........
as partner and duly
authorised by the firm in the presence of
Signed for and on
of X V Z Transport
Co. Ltd. by Its Managing Director
duly authorised by
the Board of Directors in the presence of