Agreement for hire-purchase of machinery

Updated atMarch 2010

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...

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