Hire-Purchase Agreement

Hire-Purchase Agreement

An agreement made this ………..  day of …………..  between AB etc. (hereinafter called the owner), of the one part and CD etc. (hereinafter called the hirer), of the other part,

whereas it is agreed as follows:

1. The owner will let and the hirer will take on hire the goods and effects mentioned and comprised in schedule hereto annexed, for the term of …….  months (or years) from the date hereof, at a rent of Rs. …………  to be paid by instalments in the manner hereunder stated subject nevertheless the termination clause hereunder contained.

2. The hirer 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 the …………… day of each succeeding month during the said term, the next payment to be made on the  ………..  day of ………..

3. The hirer shall, until and unless all instalments of rent are paid keep and maintain all the said goods and effects in good order and condition and preserve them against loss or injury by theft etc. (reasonable wear and tear only excepted), and make good all damages whether accidental or otherwise, and at all times allow the owner, his agents or servants to inspect the same whenever demanded. 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, without the owner’s previous written consent, remove or permit removal of the said goods and effects from the above address of the hirer; such consent shall not be unreasonably withheld.

5. The hirer shall not—until and unless he becomes the full owner—sell, assign nor encumber or subject the goods or 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 nor commit any act of insolvency nor enter into any scheme or composition with his creditors.

6. The hirer shall punctually and regularly pay or cause to be paid the rates and taxes payable by him in respect of the premises, where the said goods and effects may for the time being be kept, and if any such rates and taxes shall not be paid on the exact day whereon the same shall become due, this agreement shall thereupon and thereby stand terminated even without notice or demand.

7. If the hirer fails and/or neglects to carry out any of the terms of this agreement, the owner may (without prejudice to his right to recover any arrears of rent and damages for breach of this agreement) terminate the hiring and retake possession of the said goods and effects, whether the same shall be in the possession of the hirer or of any other person, and for that purpose 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 and effects without being liable in any way for any action for trespass or otherwise or at all.

8. Notwithstanding anything hereinbefore contained, the hirer may terminate this agreement at any time by surrender and return of the said goods and effects to the owner but nevertheless he shall remain liable for the balance of instalments still to be paid.

9. The hirer may, at any time during the term of hiring, become the absolute owner of the goods and effects 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 payments stipulated.

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 names 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. (To be added in case of guarantee to the performance of the hire). In consideration of the delivery of the goods to the hirer I, EF, son of etc., stand surety for the hirer for due performance of the terms and conditions of this agreement and shall remain liable to the owner for payment of all sums as and when shall be due and payable by the hirer as rent, damages, costs, charges and expenses or on any other account under and by virtue of this agreement.

And I further declare that any time indulgence, forbearance, waiver or variation of the terms of this agreement shall not operate as a discharge of my liability as surety under these presents.

In witness hereof the parties hereto have executed these presents on the day, month and year first above-written.

Signed, sealed and delivered by AB

Signed, sealed and delivered by CD

Signed, sealed and delivered by EF