AGREEMENT
FOR HIRE-PURCHASE OF A CAR THROUGH A FINANCE COMPANY [CD1]
THIS
AGREEMENT made at………….this………….day
of...................20………….between A………….(hereinafter called the owner) of the
FIRST PART and B…………. (hereinafter called the hirer) of the SECOND PART and
C………….(hereinafter called the dealer) of the THIRD PART.
WHEREAS
(1)
The hirer is desirous to
purchase a car and he has approached the dealer to sell the car to him and to
arrange the finance for the purchase of the car.
(2)
The dealer after satisfying
about the creditworthiness of the hirer, has requested the owner to purchase
the car more particularly described in the Schedule hereto (hereinafter called
the said car), in order to let the same to the hirer under a hire-purchase
agreement.
(3)
The owner has acquired the said
car from the dealer for the abovementioned purpose and in consideration of the
above, the dealer has agreed to guarantee the payment of the hire charges by
the hirer in accordance with the terms of hire-purchase agreement
WHEREBY
IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
(1)
The owner shall let and the
hirer will take on hire the car more particularly described in the Schedule on
the following terms and conditions.
(2)
The hirer shall pay to the
owner on the execution of these presents for the option to purchase herein
contained the sum of Rs………….and for which credit will be given if the said car
be purchased in accordance with the terms of this agreement and will pay to the
owner at his address for the time being and without demand the sum of
Rs………….every calendar month by way of rent for the hire of the said car, the
first payment to be made on the………….day of.............and each subsequent
payment on the 10th day of every succeeding month.
(3)
The hirer during the
continuance of the hiring, will not sell, assign, pledge, mortgage, underlet,
lend or part with the possession of the said car or otherwise deal with the
said car and will not take the same out of the city of without the previous consent in writing of
the owner.
(4)
The hirer during the
continuance of the hiring shall keep the said car in good repair condition and
working order (reasonable wear and tear excepted) and will permit the owner,
his servants or agents to have to the said car for the purpose of inspecting
the condition thereof. The hirer shall pay all licence fees, road tax, fees and
duties payable in respect of the said car.
(5)
The said car shall be insured
by the hirer in the joint names of the owner and the hirer against loss or
damage by fire, accident, third and party risks and riot risks in the sum of
Rs………….with the Insurance Company Ltd. and the hirer shall pay punctually the
premiums and all moneys payable in respect of such insurance.
(6)
The hirer may at any time
terminate the hiring by returning the said car at his own cost and risk to the
owner at his place of address for the time being.
(7)
If the hirer shall make default
in payment of any monthly sum by payable hereunder for……… days after the same
shall have become due or shall fail to observe the terms and conditions of this
agreement or if the hirer becomes bankrupt or a receiver is appointed of his
property or if distress or execution is levied against his property or if the
hirer shall door cause to be done or permit or suffer any act or thing whereby
the owner's rights in the said car may be prejudiced or put in jeopardy, the
owner may without prejudice to the owner's claim for arrears of hire or damages
for breach of this contract, terminate the hiring without notice and retake
possession of the said car and it shall be lawful for the owner, his agents or
servants to enter upon any premises where the
said car may be and seize and take possession thereof.
And on determination of the hiring as aforesaid the hirer will remain liable
for the arrears of hire, payment or for damages for breach of this agreement
and the owner may enforce such claim by action or otherwise.
(8)
The hirer shall use the said
car for his private use only and will not allow the same to be used as a taxi
or for commercial purpose.
(9)
The hirer has examined or has
caused to be examined the said car and satisfied himself as to its condition
and running and no warranty is implied on the part of the owner as to the
quality or state of the motor vehicle as to its fitness for any purpose,
whatsoever.
(10)
The hirer and the guarantor
shall execute by way of collateral security a promissory note with joint and
several liability in favour of the owner for total hire payable for the said
car and in the event of the hirer making a default in payment of any sum due
under this agreement, the owner shall be entitled to transfer or negotiate the
said note and the transferee or holder shall take the said note free from
equities and defences as a holder in due course.
(11)
The hirer will be liable to pay
all taxes, rates, levies, licence fees or any other charges, fines or
imposition levied by the Government or local body or other authority in respect
of the said car and on this transaction.
(12)
The owner agrees to permit the
hirer to have the registration of the said car in his own name in terms of the
provisions of Motor Vehicles Act, 1988 and the Rules framed thereunder;
provided that the hirer shall transfer the registration of the said car in the
name of the owner whenever demanded by the owner to do so.
(13)
The agreement is personal to
the hirer and the rights of the hirer shall not be assignable in favour of
third party.
(14)
If the hirer shall duly perform
and observe all the stipulations and conditions in this agreement contained on
his part to be performed and observed and shall pay to the owner monthly sums
by way of rent amounting together with the sum paid for the option to purchase
to the sum of Rs………….and shall also pay all other sums of money which may
become payable to him by the hirer under this agreement, the hiring shall come
to an end and the said car shall become the property of the hirer and the owner
will assign and make over all his rights and interest in the same to the hirer
but until all such payments as aforesaid have been made, the said car will remain
the property of the owner.
(15)
Any delay, neglect, indulgence
or forbearance on the part of the owner in enforcing any terms or conditions of
this agreement shall not prejudice the strict rights of the owner hereunder.
(16)
In consideration of the owner
letting the said car to the hirer as hereinabove, the surety hereby guarantees
the due payment of the rents and all other sums of money which may become
payable by the hirer under these presents and the performance and observance of
the said agreements and conditions by the hirer and the surety agrees that this
guarantee will not be prejudiced by the owner neglecting or for bearing
promptly to enforce this agreement against the hirer or giving time for the
payment of the rents when due or delaying to take any steps to enforce the
observance or performance of the said agreement.
(17)
Any notices required to be
given herein shall be given to the parties hereto in writing and by either
Registered Post Acknowledgment due or by hand delivery at the addresses
above mentioned or at such other
addresses as the parties hereto may hereafter substitute by notice in writing.
(18)
It is agreed by and between the
parties that this agreement shall be subject to the jurisdiction of the Civil
Courts of
IN
WITNESS WHEREOF, the parties have hereunto set and
subscribed their respective hands on the date and year above mentioned.
Schedule
WITNESSES
1
Signed and delivered by the
within named owner
2
Signed and delivered by the
within named hirer
3
Signed and delivered by the
within named surety
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