AGREEMENT
FOR HIRE-PURCHASE OF MACHINERY [CD1]
THIS AGREEMENT made
at………….this………….day of..............20………….between A B &
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. ………………
XY & 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 son of B resident of..............(hereinafter called
"the Surety") of the THIRD PART.
WHEREAS
(1) The hirer has vide his letter dated…………. requested the owner to provide finance for
the purchase of printing press.
(2) 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.
(3) The hirer has placed an order with M/s………….for the purchase of
printing press.
(4) 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 the
………….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 Instalments 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 in writing of the owner;
(c)
not allow any lien to be
created upon the said printing press whether for repairs or otherwise and will
duly and punctually pay all rents, taxes, rates, charges and levies payable in
respect of the
premises wherein
the said printing press shall for the time being be situate and produce all
receipts for such payment to the owner on demand and will protect the said
printing press against distress,
execution or
seizure;
(d)
use the printing press in a
skilful and proper manner and shall at his own expense keep the said printing
press in good and substantial repair and condition (reasonable wear and tear
excepted);
(e)
keep insured the printing press
during the period of hiring against any loss or damage by hire or otherwise in
the sum of Rs………….with an insurance company in the name of the owner and
deliver the policy of such insurance to the owner and duly and punctually pay
all premiums necessary for keeping the said insurance effective throughout the
period of this agreement:
Provided that in
case the hirer shall at any time fail to effect or keep effect the said policy
by making default in any payment of premium, the owner shall be entitled to
effect such insurance and pay the premium to the said insurance company and the
hirer shall forthwith pay to the owner all the premiums and other sums paid by
the owner;
(f)
not do or omit to do any act
which may result in seizure and/or confiscation of the printing press by the
Central or State Government or local authority or any public officer or
authority under any law for the time being in force.
(4)
If the said printing press
shall be destroyed or damaged by fire or otherwise, all moneys received or
receivable in respect of such insurance as aforesaid shall forthwith be
received by the owner who shall as the case may require, apply such money
either in making good the damage done or in replacing the said printing press
by other articles of similar description and value and such substituted
articles shall become subject to the provisions of this agreement in the same
manner as the articles for which they shall have been substituted.
(5)
The hirer may determine the
hiring at any time by giving .............days notice in writing to the owner
at his address for the time being and by returning the said printing press at
the hirer's own risk and expense and shall thereupon forthwith pay to the owner
all hire charges upto the date of such determination and other sums due under
the agreement and 25% of the balance of the total hire charges still to fall
due as settled compensation.
(6)
If the hirer shall make default
in punctual payment of the monthly sum so to be paid by him for the hire of the
said printing press if a receiving order
in bankruptcy is made against him or if he compounds with his creditors or do
or suffer any act or thing whereby or in consequence of which the said printing
press may be distrained or taken in execution under legal process or by any
public authority or fails to pay to the Government or any public authority any
taxes or surcharges due in respect of the said printing press or fails to
observe and perform the terms and conditions of this agreement on his part
to be observed and performed or if the
hirer shall do or cause to be done or
permit or suffer
any act or thing whereby the owner's rights in the said printing press may be prejudiced or put in
jeopardy, the owner may without notice determine the hiring and it shall
thereupon be lawful for the owner to take possession of the said printing press
and for that purpose to enter into or upon any premises where the same may
be kept and the determination of the
hiring under this clause shall not affect the right of the owner to recover
from the hirer any money due to the owner under this agreement or damages for
breach thereof. The hirer shall also be liable to pay to the owner all expenses
incurred by the owner in repossessing or attempting repossession of the said
printing press.
(7)
If the agreement is determined
before the property in the said printing press passes to the hirer, the hirer
shall forthwith return to the owner, policies and other documents relating to
the said printing press
(8)
The hirer acknowledges and
agrees with the owner that he has inspected the printing press and he is
satisfied that the printing press is suitable for his purpose and the owner
shall not be liable to the hirer for any liability, claim, loss, damage or
expenses caused directly or indirectly by the said printing press or any
inadequacy thereof for any purpose or any defect therein or by the use thereof
or in relation to any repairs, servicing, maintenance of the said printing
press.
(9)
The hirer shall be liable to
bear and incur the installation cost,
cost of detachment of the printing press taken on hire and to pay any
tax, levy, rates or assessments levied at any time by the Central Government,
State Government or any local authority on the total of or any instalments
payable under this agreement.
(10)
If the hirer shall duly perform
and observe all the terms and conditions in this agreement and the covenants on
his part to be performed and observed
and shall punctually pay to the owner the sums specified in clause 2 hereof
amounting (together with the said sum of Rs…………. so paid on the execution of this agreement as
aforesaid) to the sum of Rs………….then the
hiring shall come to an end and the said printing press shall become the property
of hirer and the owner will
assign and make
over all his rights, title and interest in the same to the hirer but until such
payments have been made, the printing press shall remain the property of the
owner.
(11)
No neglect, delay, indulgence,
forbearance or waiver on the part of the owner in enforcing any terms or
conditions of this agreement shall prejudice the rights of the owner hereunder.
(12)
In consideration of the owner
letting the said printing press to the hirer at the rent and under the
agreements and conditions hereinbefore expressed, the surety hereby guarantees
the due payment of the said rents and all other sums of money which may become
payable under this agreement and the performance and observance of the said
agreements and conditions by the hirer and this guarantee shall not be
prejudiced by the owner neglecting or forbearing to enforce this agreement
against the hirer or giving time for the payment of the said rents when due or
delaying to take any steps to enforce the performance or observance of the said
agreements or conditions or granting any indulgence to the hirer.
(13)
The parties to this agreement
hereby declare that they have fully understood the meaning of all the clauses,
terms and conditions of this agreement and they have accepted and executed this
agreement with full knowledge and understanding of the obligations herein.
IN WITNESS WHEREOF, the
parties have executed this agreement on the day and the year first hereinabove
written.
The
Schedule above referred to
(Particulars
of the printing press)
WITNESSES The
common seal of A B & Co. Ltd., the within named owner has been
hereunto
affixed pursuant to the
1.
Resolution of its Board of
Directors on…………. in the presence of Shri………….Director
and Mr………….Secretary of the company, who
have
signed these presents
2.
Signed and delivered by Mls. X
Y & Sons, the within named hirer by its partners
Signed
and delivered by A, the within named surety
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