Agreement
for Hire-Purchase of Machinery
THIS
AGREEMENT made at.............. this.............. day of.............., 200,
between ABC & Co. Ltd., a company incorporated under the Companies Act,
1956, and having its registered office at.............. (Hereinafter called
"the Owner") of the FIRST PART and M/s. X Y & Sons, a partnership
firm, carrying on the business of printing press and having its place of
business at .............. (Hereinafter called "the Hirer") of the
SECOND PART and Shri A s/o B resident of.............. (Hereinafter called 'the
Surety") of the THIRD PART.
WHEREAS
the hirer has vide his letter dated.............. requested the owner to
provide finance for the purchase of printing press.
AND
WHEREAS the owner has by its reply dated.............. agreed to provide
finance for the purchase of printing press on the terms and conditions laid
down in the said letter and the documents to be executed for the said purpose.
AND
WHEREAS the hirer has placed an order with M/s..................... for the
purchase of printing press.
AND
WHEREAS the owner has provided the finance by making payment of an amount of
Rs........... vide cheque no................ dated.............. drawn
on............. to the supplier...........................
NOW
IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:
1. The owner, being the
owner of the printing press with fittings, tools, and accessories, more
particularly described in the Schedule hereto shall let and the hirer shall
take on hire from this.............. day of...............
2. On execution of these
presents, the hirer shall pay a sum of Rs............ to the owner as initial
payment by way of hire and shall during the continuance of this agreement pay
to the owner at his address for the time and without previous demand by way of
rent for the hire of the said printing press the monthly sum of
Rs............... the first payment to be made on the.............. day
of.............. next and each subsequent payment on the.............. day of
each succeeding month during the said term.
3. During the
continuance of the agreement, the hirer shall-
a. not sell or offer for
sale, assign, mortgage, pledge, underlet, let or otherwise deal with the said
printing press or any part or parts thereof or with any interest therein;
b. keep the said
printing press in his own possession and will not remove the same or any part
or parts thereof from the place where such printing press is for the time being
situate without the previous consent in writing of the owner;
c. not allow any lien to
be created upon the said printing press whether for repairs or otherwise and
will duly and punctually pay all rents, taxes, rates, charges and levies
payable in respect of the premises wherein the said printing press shall for
the time being be situate and produce all receipts for such payment to the
owner on demand and will protect the said printing press against distress,
execution or seizure;
d. use the printing
press in a skilful and proper manner and shall at his own expense keep the said
printing press in good and substantial repair and condition (reasonable wear
and tear excepted);
e. keep insured the
printing press during the period of hiring against any loss or damage by hire
or otherwise in the sum of Rs............. with an insurance company in the
name of the owner and deliver the policy of such insurance to the owner and
duly and punctually pay all premiums necessary for keeping the said insurance
effective throughout the period of this agreement:
Provided
that in case the hirer shall at any time fail to effect or keep effect the said
policy by making default in any payment of premium, the owner shall be entitled
to effect such insurance and pay the premium to the said insurance company and
the hirer shall forthwith pay to the owner ail the premiums and other sums paid
by the owner;
a.
b.
c.
d.
e.
f. Not do or omit to do
any act which may result in seizure and/or the confiscation of the printing
press by the Central or State Government or local authority or any public
officer or authority under any law for the time being in force.
4. If the said printing
press shall be destroyed or damaged by fire or otherwise, all moneys received
or receivable in respect of such insurance as aforesaid shall forthwith be
received by the owner who shall as the case may require, apply such money
either in making good the damage done or in replacing the said printing press
by other articles of similar description and value and such substituted
articles shall become subject to the provisions of this agreement in the same
manner as the articles for which they shall have been substituted.
5. The hirer may
determine the hiring at any time by giving............. days notice in writing
to the owner at his address for the time being and by returning the said
printing press at the hirer's own risk and expense and shall thereupon
forthwith pay to the owner all hire charges up to the date of such
determination and other sums due under the agreement and 25% of the balance of
the total hire charges still to fall due as settled compensation.
6. If the hirer shall
make default in punctual payment of the monthly sum so to be paid by him for
the hire of the said printing press or if a receiving order in bankruptcy is
'made against him or if he compounds with his creditors or do or suffer any act
or thing whereby or in consequence of which the said printing press may be
distrained or taken in execution under legal process or by any public authority
or fails to pay to the Government or any public authority any taxes or
surcharges due in respect of the said printing press or fails to observe and
perform the terms and conditions of this agreement on his part to be observed
and performed 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 printing press may be
prejudiced or put in jeopardy, the owner may without notice determine the
hiring and it shall thereupon be lawful for the owner to take possession of the
said printing press and for that purpose to enter into or upon any premises where
the same may be kept and the determination of the hiring under this clause
shall not affect the right of the owner to recover from the hirer any money due
to the owner under this agreement or damages for breach thereof. The hirer
shall also be liable to pay to the owner all expenses incurred by the owner in
repossessing or attempting repossession of the said printing press.
7. If the agreement is
determined before the property in the said printing press passes to the hirer,
the hirer shall forthwith return to the owner, policies and other documents
relating to the said printing press.
8. The hirer
acknowledges and agrees with the owner that he has inspected the printing press
and he is satisfied that the printing press is suitable for his purpose and the
owner shall not be liable to the hirer for any liability, claim, loss, damage
or expenses caused directly or indirectly by the said printing press or any
inadequacy thereof for any purpose or any defect therein or by the use thereof
or in relation to any repairs, servicing, maintenance of the said printing
press.
9. The hirer shall be
liable to bear and incur the installation cost, cost of detachment of the
printing press taken on hire and to pay any tax, levy, rates or assessments
levied at any time by the Central Government, State Government or any local
authority on the total of or any installments payable under this agreement.
10. If the hirer shall
duly perform and observe all the terms and conditions in this agreement and the
covenants on his part to be performed and observed and shall punctually pay to
the owner the sums specified in clause 2 hereof amounting (together with the
said sum of Rs.............. so paid on the execution of this agreement as
aforesaid) to the sum of Rs........... then. The hire shall come to an end and
the said printing press shall become the property of hirer and the owner will
assign and make over all his rights, title and interest in the same to the
hirer but until such payments have been made, the printing press shall remain
the property of the owner.
11. No neglect, delay,
indulgence, forbearance or waiver on the part of the owner in enforcing any
terms or conditions of this agreement shall prejudice the rights of the owner
hereunder.
12. In consideration of
the owner letting the said printing press to the hirer at the rent and under
the agreements and conditions hereinbefore expressed, the surety hereby
guarantees the due payment of the said rents and ail other sums of money which
may become payable under this agreement and the performance and observance of
the said agreements and conditions by the hirer and this guarantee shall not be
prejudiced by the owner neglecting or forbearing to enforce this agreement
against the hirer or giving time for the payment of the said rents when due or
delaying to take any steps to enforce the performance or observance of the said
agreements or conditions or granting any indulgence to the hirer.
13. The parties to this
agreement hereby declare that they have fully understood the meaning of all the
clauses, terms and conditions of this agreement and they have accepted and
executed this agreement with full knowledge and understanding of the
obligations herein.
IN
WITNESS WHEREOF, the parties have executed this agreement on the day and the
year first hereinabove written.
The
Schedule above referred to
(Particulars
of the printing press)
The
common seal of ABC & Co. Ltd., the within named owner has been hereunto
affixed pursuant to the
Resolution
of its Board of Directors on...............
in
the presence of Mr................... Director and
Mr.
.......................... Secretary of the company,
who
have signed these presents
