HIRE-PURCHASE AGREEMENT
THIS AGREEMENT made on this _______ day of __________ between _______ a company registered under the Companies Act, 1956 and having its registered office at__________ hereinafter referred to as "the Owner" (which expression shall unless repugnant to the context or meaning thereof include its authorised representatives, successors and assigns) of the one part
AND
Sh. ________S/o _______r/o ___________ hereinafter referred to as "the Hirer" (which expression shall unless repugnant to the context or meaning thereof include his heirs, executors, administrators, legal representatives and assigns) of the other part.
Sh. __________S/o ________ r/o __________ hereinafter referred to as "the Guarantor" (which expression shall unless repugnant to the context or meaning thereof include his heirs, executors, administrators, legal representatives and assigns) of the third part.
WHEREAS the Hirer want to purchase goods specified in schedule-1 of this agreement and the owner has agreed to finance the purchase of these goods by hirer at a cost price of Rs._________ and agrees to let it on hire to the Hirer on the terms and conditions hereinafter appearing.
WHEREAS IT IS AGREED AS FOLLOWS:
1. The owner will let and the hirer will take on hire the goods mentioned in schedule-1 of this agreement for the term of _______months/years from the date of this agreement, at a monthly rent of Rs ______to be paid by instalments in the manner hereunder stated subject nevertheless the termination clause hereunder contained.
2. The hirer has already paid to the owner the sum of Rs_______ being the first month's rent (the receipt of which sum the owner hereby acknowledges), and the hirer shall continue to pay to the owner a further sum of Rs_______ per month, as instalment of such rent on the7th. Day of each succeeding month during the said term. After paying, all payments as given in Schedule of payments the hirer will become absolute owner of goods.
3. The hirer shall, maintain all the said hired Goods in good order and condition. He shall preserve them against any loss or injury by theft or otherwise, reasonable wear and tear shall be excepted. The hirer at all times allow the owner, his agents or servants to inspect the hired Goods on demand. In the event of the goods being damaged or destroyed beyond repairs or replacement or lost by fire, theft or any other cause, the hirer shall nevertheless remain liable for and pay the owner all remaining instalments due on the goods.
4. The hirer shall not remove or permit removal of the hired goods from the above address of the hirer; without the owner's previous written consent
5. The hired goods will remain property of owner until the full payment of hire purchase amount. The hirer shall not before he becomes the full Owner sell, assign, encumber or subject the goods to suffer any decree or order of any court whereby the goods or any portion thereof may be attached or charged, encumbered or otherwise seized or taken in execution.
6. On failure of hirer to carry out any of the terms of this agreement, the owner may terminate the Hire Purchase Agreement and take back possession of the said goods. For taking back of goods the hirer/any other person who possess the goods on behalf of the hirer hereby gives the owner, his agents or servants all facilities to enter in or upon any premises occupied by the hirer, to search for, seize and retake possession of all the said goods without being liable in any way for any action for trespass or otherwise or at all. This taking back of goods will not prejudice to the right of owner to recover any arrears of rent and damages for breach of this agreement.
7. Notwithstanding anything contained in this agreement, the hirer may terminate this agreement at any time by surrender and return of the said goods to the owner but he shall remain liable for the balance of instalments still to be paid.
8. The hirer may, at any time during the term of hiring, become the absolute owner of the goods hereby hired by paying to the owner all arrears of rent (if any) and all rents which would become due on this agreement during the said term without any discount or deduction or, subject to a discount of _________per cent. on all remaining payments.
10. The hirer shall keep the goods insured against fire, theft, injury, accident and also third party risks in the name of the owner or in their joint name and regularly and punctually pay each premium as and when the same shall become due.
11. Any time concession or indulgence granted or shown on the part of the owner will not prejudice his rights under this agreement.
12. The Guarantor, in consideration of the Owner agreeing to hire the goods to the Hirer, agrees as the principle obligator to observe and perform the terms and conditions of this Agreement and also hereby guarantees the due performance and observance thereof by Hirer and agrees to pay on demand any moneys due or which become payable under this Agreement (and not paid by the Hirer),. The obligations of the Guarantor shall remain in full force until the Hirer is discharged form this Agreement and are irrevocable.
13. Every dispute, difference, or question which may, at any time, arise between the parties hereto or any person claiming under them, in respect of any clause of the Agreement or the subject-matter thereof, shall be referred to the arbitration of ___________ (name of the Arbitrator) or, if he shall be unable or unwilling to act, to another arbitrator to be agreed upon between the parties or failing Agreement, to three arbitrators one to be appointed by each party to the dispute or difference and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator and the decision of the arbitrator (or, arbitrators) shall be final and binding on the parties. Subject as aforesaid the Arbitration and Conciliation Act, 1996 and the rules made there under shall apply to the arbitration proceedings under this clause. The award of the arbitrator or Arbitrators appointed as above shall be conclusive and binding on the parties.
IN WITNESS WHERE OF, the parties hereto have signed this Agreement on the day and year first here-in-above written.
For and behalf of the Company
Authorised Representative
Hirer
Guarantor
Witness:
1.
2.
3.
