Hire-Purchase
Agreement between Manufacturer and Hirer
This
agreement made on this.................. day of ................ between ABC, etc. (hereinafter
called the owner which expression shall include the successors and assigns
unless the context otherwise admits) of the one part and CD, etc. (hereinafter
called the hirer) of the other part.
Whereas
The
owner is engaged in the business of manufacturing.............. and has agreed to let
to the hirer.
2. The
hirer has agreed to take on hire the said goods more particularly described in
Schedule A hereto for the term of.............years...............from.......
Now this
Agreement Witnesses as follows :
Hire.-The
hirer shall pay to the owner on the execution of this agreement the sum of
Rs.............................. as hire for the first month and on the first day of every calendar
month during the period of hiring the sum of Rs...............by way of hire for the said
goods, or shall pay the rent specified in Schedule-B hereto which payable
without demand on the day therein mentioned.
2. Option
to purchase.-The hirer shall at any time during the hiring have the option to
purchase the said goods for Rs............and in that event the hirer shall receive
full credit for all sums previously paid by him under the preceding clause.
However , until the purchase so effected and the price fully paid by the hirer
the said goods shall remain the pr0perty of the owner.
3. Hirer’s
covenants.-During the hiring period the hirer will-
a. not
sell, transfer pledge, hypothecate, charge or in any manner encumber the goods
or part with possession thereof either in entirely or in part ;
b. Not
without the consent in writing or the owner, remove the said goods or any part
thereof from the premises of the hirer at.................and shall inform the owner
forthwith of any change in address or shift or place ;
c. will
not lend or mortgage the goods to any other person without the previous
permission in writing of the owner ;
d. will
keep and maintain the goods in good order and condition and will, on the expiry
of...............years or earlier termination of this agreement, return the same to owner
in the same condition in which it has been given on hire, reasonable wear and
tear however excepted, and all loss or damage due to breakage pilferage or any
other cause shall be made good by hirer at his own cost;
e. pay
all taxes, fees, duties, fines, registration charges, other charges, payable in
respect of the assets as when the it shall become due ;
f. permit
the owner or his authorised agent or any nominee at all reasonable times to
visit and examine the condition of the said goods ;
g. shall
keep the goods insured against all looses or risks or damage by fire, tempest
or theft upto the value of Rs............with an Insurance Company to be nominated by
the owner and shall punctually all premia and produce to owner of and when so
required the receipts for the last premium paid and keep the insurance alive
during the continuance of the agreement. If the said hired goods are damaged or
destroyed by fire or lost by theft all moneys received in respect of such
insurance by the hirer shall be paid forthwith to the owner who shall apply the
same in making good the loss by replacement of such damaged part or parts or
the entire goods of similar description and value whereupon such replaced part
or parts or goods shall become subject-matter to this agreement in the same
manner as the original goods ;
h. in
case of default by hirer in payment of the charges mentioned in sub-clause (g)
above, the owner may pay the same or any part thereof and the hirer shall be
liable to reimburse the same together with interest thereon at the rate of 15%
p.a. from the date of payment by the owner ;
i. the
hirer shall indemnify the owner against claims by third parties arising out of
any accident caused by the user of the asset by the hirer until the
determination of this agreement ;
j. the
hirer shall not use or permit or cause the asset to be used in contravention of
any statute or regulations for the time being in force or otherwise in any way
contrary to any law excepting as permitted by and under this agreement ;
k. hirer
agrees to make good to the owner all damages caused to the asset (fair wear and
tear excepted) and pay the owner the full value of the asset if there is total
loss of the assets, whether the damage or loss be caused accidentally or
otherwise and by any reason whatsoever and to keep the asset at his sole risk,
until he purchases the asset or returns it to the owner ;
l. hirer
agrees to pay all expenses for repair found necessary by the owner, replace any
damaged parts and not make any alteration or addition thereto without previous
permission in writing of the owner ;
m. hirer
has examined /caused to be examined the asses and receipt by him of the same
shall be conclusive proof that the asset has been duly accepted by him as being
in perfect order and has been duly accepted by him as being in perfect order
and working condition.
1.
2.
3.
4. Intimation
of change in address.-The hirer shall forthwith intimate the owner of any
change of his address and also of the address of the premises where the asset
is kept and shall also immediately notify the owner in writing of any loss or
damage to the said asset.
5. Default.-If
the hirer shall make default in the punctual and prompt payment, in full, of
the said monthly hire or in the observance or performance of any of the
provisions of this agreement, which is to be observed and performed by him, the
hiring shall immediately determine.
6. Owner
to take possession.-On the determination of the hiring, the owner shall without
notice or demand take possession of the hired goods and for that purpose may by
himself or by his agent or servants enter into or upon any premises occupied by
the hirer and search for the same if necessary for the said goods.
7. Hirer’s
option to terminate hiring-The hirer may terminate the agreement at any time
without notice by returning the said goods at the owner’s address or his place
of business.
8. Rights
to damages not affected.-If the hiring is terminated by the hirer under clause
7 above such termination shall be without prejudice to the owner’s right to
recover the hire upon the date of such termination nor his right to recover
damages for any prior breach of this agreement by the hirer or on account of
any payments previously made by him.
9. Compensation
for depreciation.-On the termination of this agreement either at the instance
of the hirer or the owner, the hirer shall pay to the owner by way of
compensation for depreciation of the said goods such sum as with the amount
previously paid for hire shall be of a sum equal to not less than one half of
total amount payable under the agreement.
10. Time
or indulgence not to affect owner’s rights.-Any time or other indulgence
granted by the owner to hirer shall not prejudice or affect his strict rights
under this agreement.
SCHEDULE
A
Description
of Goods.
1. Name
2. Accession
No.
3. Mark/Trade
Name
4. Year
of Manufacture
5. Make
of Machine
6. No.
of Machine
7. Other
description :
..........................
............................
............................
1.
1.
2.
3.
4.
5.
6.
7.
8. Accessories
affixed to the goods
.........................................
.........................................
.......................................
......................................
.....................................
SCHEDULE
B
(ABOVE
REFERRED TO)
Amount
payable under this Agreement :
Due
Date Amount (Rs.)
....................
....................
....................
....................
....................
....................
in
witness whereof the parties hereunto have set their respective hands the day,
month and year hereinabove written.
Witnesses
: Signature of Hirer
1. .................
2. .................
Signature of Owne
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