AGREEMENT FOR HIRE PURCHASE OF A VEHICLE WITH A FINANCIER AND A GUARANTOR [CD1]
THIS AGREEMENT
made on this _______ day of __________ between ____________________________ a
company registered under the Companies Act, 1956 and having its registered
office at______________________________________________________ hereinafter
referred to as "the Owner" (which expression shall unless repugnant
to the context or meaning thereof include its authorised representatives,
successors and assigns) of the one part
AND
Sh.
__________________________________________ S/o
_____________________________________________
r/o
__________________________________________________________________ hereinafter
referred to as "the Hirer" (which expression shall unless repugnant
to the context or meaning thereof include his heirs, executors, administrators,
legal representatives and assigns) of the other part.
AND
Sh.
____________________________________________ S/o
_____________________________________________
r/o _______________________________________________
hereinafter referred to as "the Guarantor" (which expression shall
unless repugnant to the context or meaning thereof include his heirs,
executors, administrators, legal representatives and assigns) of the third
part.
WHEREAS the Hirer
and the Guarantor have signed a proposal form for hire of a vehicle (which is
to be regarded as the basis of this contract) and the Owner has accepted the
proposal and purchased the vehicle at a cost price of Rs.____________ and
agrees to let it on hire to the Hirer on the terms and conditions hereinafter
appearing.
NOW
THIS AGREEMENT WITNESSETH AS FOLLOWS:
1.
Hire of Vehicle
The Owner, being
the absolute Owner of the motor vehicle with fittings, tools and accessories
and additions more particularly described in the Schedule I hereto and
hereinafter collectively called "the vehicle" agrees to let and the
Hirer agrees to take on hire the vehicle from the date hereof subject to the
terms and conditions herein contained and hereto annexed and which shall be
taken and read as part of this Agreement.
2.
Hirer to make initial
payment
The Hirer shall
pay to the Owner on the execution of this Agreement the sum of Rs.__________ as
an initial payment by way of hire which shall become the absolute property of
the Owner and will punctually pay to the Owner and without previous demands the
sum mentioned in Schedule II by way of rent for the hire of vehicle, the first
payment to be made on the _________ day of ___________, and each subsequent
payment on or before the _______ day of every succeeding calendar month unless
the
Hirer shall have terminated
this Agreement as hereinafter provided.
3.
Hirer to become the owner of the vehicle
on completion
of Agreement
If the Hirer shall
duly perform and observe all the terms and conditions contained in this
Agreement and the covenants on his part to be performed and observed, and shall
in a manner aforesaid pay to the Owner all other sums of money which may become
payable to it by the Hirer under this Agreement, the hiring shall come to an
end and the vehicle shall at the option of Hirer (to be exercised by him)
become his property and the Owner will assign and make over all his right,
title and interest in the same to the Hirer but until such payments as
aforesaid have been made the vehicle shall remain the absolute property of the
Owner.
4.
Termination of Agreement by the
Hirer
The Hirer shall be
at liberty at any time during the continuance of this Agreement to terminate
the hiring by returning the vehicle to the Owner in the same order and
condition in which it was delivered to the Hirer (reasonable wear and tear
excepted) free of all expenses to the Owner. The Hirer shall pay to the Owner
the stipulated hire up to the date of such determination including apportioned
hire for any broken period of the month and 25% of the balance of the total
unpaid hire (still to fall due) as compensation to the Owner for depreciation
in the value of the vehicle. The Hirer shall not be entitled to any allowance,
return or credit in respect of any previous payment made by him under the terms
of this Agreement, but this shall be without prejudice to any claims the Owner
may have against the Hirer in respect of this Agreement.
5.
Hirer's Covenants
The Hirer covenants as
follows:
a.
To keep the vehicle in thorough
working condition and to make no alteration thereon or addition thereto without
the previous permission of the Owner and it is agreed that in the event of this
Agreement being terminated by the Owner, such additions or alterations as
aforesaid shall be deemed to be the absolute property of the Owner, provided
always that Hirer shall not have or be deemed to have any authority to pledge
the credit of the Owner for repairs, alterations or additions.
b.
. That the payments specified
in Clause 2 are not subject to suspension or delay by reason of the vehicle
requiring or undergoing repairs or being suspended by any Transport authority
or pending the insurance claim or by reason of delay in the registration of the
vehicle or its nonregistration or non-receipt of the permit by the Hirer or on
account of any alleged dispute with the Owner or any other cause or reason
whatsoever.
c.
To indemnify the Owner against
loss by reason of damage to or destruction or loss of the vehicle from any
cause whatsoever or by reason of claims by third parties in respect of the
same.
d.
To keep the Owner notified of
the address of the premises where the vehicle is kept and of any change in the
same as soon as made.
e.
To allow the Owner's
representatives free access at all reasonable times to inspect the vehicle or
to take possession of the same as hereinafter mentioned.
f.
To have the vehicle registered
in the name of the Owner and not to sell mortgage, pledge, hypothecate, hire or
otherwise deal with the vehicle nor to part with the possession of the vehicle
nor to remove it out of __________________ (the premises where the vehicle is
kept) without express written permission of the Owner previously obtained and
also not to use the vehicle for any purpose other than that declared in the
original proposal form.
g.
To pay in the name and on
behalf of the Owner all fees and taxes, payable in respect of the vehicle as
and when the same becomes due and to indemnify the Owner against all such
payments.
h.
To return to the Owner the
permit, the registration certificate and all other papers and certificates
granted by the Registering authority in the event of the termination of the
hiring contract or repossession by the Owner.
i.
To indemnify the Owner against,
for any liability in respect of Local & Central Sales tax pertaining to the
transaction covered by this Agreement.
j.
. Hirer to pay compensation in
case of overdue payments The Hirer agrees to pay to the Owner compensation @
__% per mensem on the amount of any sum overdue, including any sum of taxes,
fees, repairs and supplies which may be due from the Hirer to the Owner in
respect of the Vehicle but this shall not, in any way, affect or prejudice the
right of the Owner as provided herein to recover possession of vehicle and to
determine the Agreement on default of non-payment of any of the hire
payments.
k.
Hirer to remain bailee of the
Owner till he clears all his payments The Hirer acknowledges that he holds the
vehicle as a bailee of the Owner and shall not have any proprietary right,
title or interest as purchaser therein until (he shall have) exercised his
option of purchase as hereinbefore provided by payment of the whole amount due
under this Agreement or under any terms thereof and the Owner make over to him
all its rights, title and interest in the vehicle. The Owner shall have the
right to refuse to transfer the Ownership of the vehicle after they have
realised their full hire amount under this Agreement if the Hirer has hired out
another vehicle from the Owner in respect of which his liability is not fully
discharged in terms of the Agreement under which he has hired another vehicle
or guaranteed the transaction of another vehicle at their sole discretion.
L . Termination of
Agreement
(i)
The Owner may terminate with or
without notice, the contract of hiring and forthwith retake and recover
possession of the vehicle if the Hirer commits any of the breach of the
conditions and obligations herein stipulated. The Agreement shall also stand
terminated if the Hirer dies, or become insolvent or has a receiving order made
or any insolvency notice served upon him or an attachment is levied on any of
his property or the Hirer allows the vehicle to be seized in distress or
execution or under any other process of law.
(ii)
Any such termination shall be
without prejudice to any claims the Owner may have in respect of any terms or
conditions of this Agreement and it is further agreed that if the hiring is
determined by the Owner or by the Hirer in the manner herein provided all hire
upto the date of such termination and damages for breach of the Agreement shall
be paid by the Hirer to the Owner. (iii)
In the event of termination of the Agreement by the Owner under the terms
hereof, the Owner shall have the right to repossess the vehicle together with
all articles and goods appurtenances which may happen to be in or upon the
vehicle at the time of such repossession provided that all such articles found
in the vehicle not being the property of the Owner shall be delivered to the
Hirer. The Hirer hereby agrees to indemnify the Owner in respect of such
repossession. For the purposes of such repossession or attempted repossession
of the vehicle, leave and licence is hereby given to the Owner, its agents or any
other persons employed or authorised by it to enter any building, premises or
place where the vehicle may be or may supposed to be and take possession of the
same from the Hirer or any other person using or possessing the same without
being liable to any suit or other proceedings by the Hirer or any person
claiming under him.
9.
Insurance If the vehicle
supplied by the Owner is insured through the Owner, the Hirer will, if he is
not overdue with his payments, be granted such benefits as the Owner derive
from the insurance in respect of any claims, if any. Such insurance, however, shall
not absolve the Hirer from his liability under clause 5 hereof provided always
that in the event of the vehicle being destroyed or being so extensively
damaged as to be in the opinion of the insurance company a total loss, then and
in that case, the amount recoverable under the insurance policy shall be
applied in the first place in paying all moneys due by way of arrears of hire
and such other sums due by the Hirer in terms of this Agreement and hereafter
if the balance of the sums received by the Owner under such policy shall exceed
such dues, the excess shall be paid by the Owner to the Hirer. The Hirer
further agrees that he will be bound by any settlement the Owner may make with
insurance company regarding any claim and that their discharged to the
insurance company will be final and binding on him and the
Owner will, in no way,
be answerable to the Hirer in respect of the said settlement.
10. Hirer to give Promissory Notes as Collateral Security The Hirer
hereby agrees to give to the Owner in respect of all the monthly hire payments,
promissory notes by way of collateral security and he further agrees that the
Owner shall be entitled to negotiate the said demand promissory notes and also
to sue upon the same.
11. Hirer to satisfy himself as to the quality or state of the vehicle
The Hirer has examined (or has caused to be examined) the vehicle and satisfied
himself to the conditions and running and no warranty is implied on the part of
the Owner as to the quality or state of the vehicle or as to its fitness for
any purpose whatsoever, and the delivery receipt issued by the Hirer regarding
the vehicle shall be conclusive to the effect that the vehicle has been
accepted by him as duly fitted, equipped and according to contract and no claim
or objection thereafter shall be admissible.
12. Delivery of Notice or other communications pursuant to Agreement Any
letter, notice or other communications dispatched to the Hirer or Guarantor
whether through post office or through a representative at the address last
notified to the Owner by the Hirer or the Guarantor shall be deemed to have
been received by them (even though it may have been returned) respectively with
the remarks "refused", "undelivered" or any words to that
effect, or for any other reason whatsoever provided the envelop containing the
notice was properly addressed and posted.
13. Agreement -- entire understanding of the parties The Hirer and the
Guarantor hereby admit that this Agreement has been fully explained to them and
that they fully understand the meaning of each and every clause of the same and
that they have signed this Agreement with the full knowledge of the conditions
and obligations herein imposed and which they willingly incur and assume. The
Agreement as herein set forth contains the entire understanding, Agreement,
warranty or representation express or implied, in any way.
14. Obligations of the Grantor The Guarantor, in consideration of the
Owner agreeing to hire the vehicle to the Hirer, agrees as the principle
obligator to observe and perform the terms and conditions of this Agreement and
also hereby guarantees the due performance and observance thereof by Hirer and
agrees to pay on demand any moneys due or which become payable under this
Agreement (and not paid by the Hirer), either by way of hire, debt or damages
or costs, or expenses on interest/repairs/replacement and further agrees that
any time granted to the Hirer or any indulgence shown in respect of the terms
and conditions herein either in the shape of releasing or re giving the vehicle
after the seizure to the Hirer or in any other manner shall not prejudice the
Owner rights or relieve the Guarantor from his guarantee, and that it shall not
be necessary for the Owner upon the Hirer being granted any such concession or
indulgence as aforesaid for the Owner to give any notice to the Guarantor
thereof. He further agrees that the Owner’s right or lien on the vehicle or
right to seize the same shall not be destroyed by reason of any judgement,
decree or order obtained against the Hirer or himself or both. The obligations
of the Guarantor, thus, shall remain in full force until the Hirer is
discharged form this Agreement and are irrevocable.
15. Arbitration Clause
Every dispute, difference, or question
which may, at any time, arise between the parties hereto or any person claiming
under them, in respect of any clause of the Agreement or the subject-matter
thereof, shall be referred to the arbitration of ___________ (name of the
Arbitrator) or, if he shall be unable or unwilling to act, to another
arbitrator to be agreed upon between the parties or failing Agreement, to three
arbitrators one to be appointed by each party to the dispute or difference and
the two appointed arbitrators shall appoint the third arbitrator who shall act
as the presiding arbitrator and the decision of the arbitrator (or,
arbitrators) shall be final and binding on the parties. Subject as aforesaid
the Arbitration and Conciliation Act, 1996 and the rules made there under shall
apply to the arbitration proceedings under this clause. The award of the
arbitrator or Arbitrators appointed as above shall be conclusive and binding on
the parties.
IN
WITNESS WHERE OF, the parties hereto have signed this Agreement on the day and
year first here-in-above written.
SCHEDULE I- HEREINABOVE
REFERRED TO
One New/Second Hand ____________ (nature
of vehicle) Make and Model _________, bearing Engine No. _______, Chasis No.
________Registered No.__________ complete with/without accessories.
SCHEDULE II- HEREINABOVE
REFERRED TO INSTALMENTS BY WAY
OF HIRE
1. One _________ Rs.________
2. One month after Rs.________
3. One month after Rs.________
4. One month after Rs.________ (and so on depending on the no. of
instalments) For and behalf of the Company
Authorised
Representative
Hirer
Guarantor
Witness:
1.
2.
3.
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