Hire Purchase Agreement with Guarantee
THIS AGREEMENT made this ‘‘day’’. . . . . . . .of, 20 . . . . . . . . between A. B. etc. . . . . . . . . (hereinafter called ‘‘the Owner’’) of the first part and C. D. etc. . . . . . . . . . . . . (hereinafter called ‘‘the Hirer’’) of the second part and E. F. etc. . . . . . . . . (hereinafter called ‘‘the Guarantor’’) of the third part.
WHEREAS the Owner on the request of the Hirer has purchased the motor vehicle described in the Schedule hereto from the dealer in order to let the same to the Hirer on the terms and conditions hereinafter appearing and the Guarantor has agreed to guarantee the payment of the hire and performance of other conditions by the Hirer in accordance with the terms of this agreement.
WHEREBY in consideration of the above it is agreed between the parties as follows:
1. The Owner will let and the Hirer will take on hire the goods mentioned in the Schedule hereto for the term of . . . . . . . years on the terms hereinafter contained.
2. The Hirer shall pay to the Owner on the execution of this agreement the sum of Rs . . . . . . . . and on the . . . . . . . . day of every calendar month or year during the hiring the sum of Rs. . . . . . . . . by way of hire for the said goods.
3. The Hirer shall at any time during the hiring have the option of purchasing the said goods for Rs . . . . . . . . and in that event the Hirer shall receive credit for all sums previously paid by him under the preceding clause. Until a purchase shall have been effected and the price fully paid the said goods shall remain the property of the Owner.
4. During the hiring the Hirer will—
(a) not sell, pledge, charge or in any manner part with the possession of the said goods or any of them;
(b) will keep the vehicle registered in the name of the Owner, and pay all taxes, rates, duties and licence fee or any other charges levied by any authority under any law or rules for the time being in force in respect of the said vehicle, during the continuance of this agreement;
(c) permit the Owner or his authorised agents at all reasonable times to inspect and examine the condition of the said goods;
(d) shall keep the goods insured against all losses or damage by fire, tempest or theft up to the value of Rs . . . . . . . in some Insurance Company to be approved by the Owner and shall keep the insurance alive during the continuance of the agreement. He shall pay to the Owner all sums of money received in respect of such insurance, who shall apply such money in making good the loss by replacement of such damaged part or parts or the entire goods of similar description and value whereupon such substituted part or parts or goods shall become subject to this agreement in the same manner as the original goods.
(other conditions settled and necessary according to the nature of the goods)
5. If the Hirer shall make default in the punctual payment in full of the said monthly hire or in the observance or performance of any of the provisions of this agreement, on his part to be observed and performed, the hiring shall immediately determine.
6. On the determination of the hiring the Owner may without notice or demand retake possession of the said 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 the same if necessary for the hired goods.
7. The Hirer may terminate this agreement at any time by returning the said goods at the Owner’s place of business.
8. If the hiring is terminated by the Hirer under Clause 7, such termination shall not prejudice the Owner’s right to recover the hire up to the date of such termination nor his right to recover damages for any prior breach of this agreement by the Hirer, and the Hirer shall not be allowed credit or set-off for or on account of any payments previously made by him.
9. That the Guarantor further agrees that in consideration of the premises, and in case of breach of the terms of this contract by the Hirer, he shall restore possession of the vehicle to the Owner and shall pay such sums of hire of the vehicle as may have fallen due to the Owner along with any other sum that may become payable to the Owner.
10. Any time or other indulgence granted by the Owner shall not prejudice or affect his strict rights under this agreement.
IN WITNESS WHEREOF etc.