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
1. 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 :
1. 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.
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 :
……………………..
……………………….
……………………….
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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DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT
PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION.
IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS
ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
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