Hire-Purchase agreement

Updated atMarch 2010

THIS AGREEMENT is made at... this... day of... between M/s. XYZ & Co. Ltd., a Company having registered office at... hereinafter referred to as 'the Company' of the One Part and Mr.... of... hereinafter referred to as 'the Hirer' of the Other Part.

WHEREAS the Company is the owner of certain machinery and equipment intended for manufacturing........ and which is more particularly described In the Schedule hereunder written.

AND WHEREAS the Hirer has requested the Company to give the said machinery and equipment on hire to enable the Hirer to carry on the business of manufacturing... with an option to the Hirer to purchase the same.

AND WHEREAS the Company has agreed to do so on the following terms and conditions agreed upon between the parties.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

  1. The Company agrees to give and deliver over to the Hirer the said machinery and equipment described in the Schedule hereunder written on hire on the terms and conditions hereinafter mentioned and pursuant to the said Agreement the Company has delivered possession of the said machinery and equipment to the Hirer.

  2. The Hirer confirms that he has inspected the said machinery and equipment before taking possession and is satisfied that it is in good and working condition and acknowledges delivery of the same to him by the Company and agrees to hold it on the terms and conditions hereinafter mentioned.

  3. The hire-purchase price of the said machinery and equipment fixed at Rs............... exclusive of the deposit amount mentioned in the next clause and the cost price fixed at Rs......... is accepted by both the parties hereto.

  4. The Hirer has paid to the Company on the execution of this agreement a sum of Rs..... as deposit or earnest which will be adjusted against the hire purchase price of the said machinery and equipment, If the Hirer exercises the option to purchase the same as hereinafter mentioned. If the Hirer does not exercise the said option or the agreement is terminated before the exercise of such option then the said amount of deposit will be returned to the Hirer by the Company on the expiration or sooner determination of this agreement, subject to deduction of any claim which the Company may have against the Hirer under or by virtue of this agreement or in law, including the cost price of the said machinery and equipment.

  5. During the pendency of this agreement the Hirer shall pay to the Company by equal monthly instalments a sum of Rs.... as hire charges, in advance, the first of such payments to be made on the execution of this agreement and each subsequent monthly payment will be made on or before the... day of such each succeeding month hereafter. The payment will be made at the registered office of the Company by cash only or by cheque in the name of the Company.

  6. If the Hirer fails to pay any monthly instalment of hire charges on the due date thereof then the Hirer shall be liable to pay interest thereon at the rate of........% per annum from the date of default till payment thereof. This is however, without...

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