TERMINATION OF HIRE PURCHASE AGREEMENT  [CD1] 

 

 

To, 

 

Sh. __________________

(Name and address of the Hirer) 

______________________ 

Subject:- Termination of Hire Purchase Agreement 

 

Dear Sir, 

This is with reference to the Hire Purchase Agreement dated ____________ entered into between you, as hirer and we, as owner whereby you are letted on hire (Name of item) _________ under the said agreement and on terms and conditions of agreement. 

 

We are sorry to say that you are not fulfilling the terms and condition of said Hire Purchase Agreement. We are serving you the notice of termination of Hire Purchase Agreement for the following cause of action: 

 

1.  That as per the clause ___ of the said agreement you are required to pay us the sum of Rs.______ by way of rent, without previous demands on or before the 7th. day of every succeeding calendar month. 

 

2.  That you have failed to pay the amount due to the owner as hire payments for the last three months. 

 

3.  That as per Clause ___ of the said agreement, we have the authority to terminate the said Hire Purchase Agreement with or without notice, and recover possession of the Goods given to you on hire purchase under the said agreement. We can also terminate the agreement, if the hirer commits any of the breach of the conditions and obligations stipulated in Hire Purchase Agreement. 

 

4.  That by not paying the amount due to us on time, you have committed the breach of clause__________ of said Hire Purchase Agreement. 

 

We, therefore, hereby terminate the said Hire Purchase Agreement for the reasons detailed in Para 1 to 4. We call upon you to pay us the arrears due and a sum of Rs. _________ (Rupees___________ only) as compensation for breach of the terms and conditions of the said agreement, by virtue of clause ___ within a period of 15 days of this notice.

 

We, further, call upon you to return the said Goods to the owner within a period of 15 days of this notice. In case of non returning of hired Goods, we shall be constrained, by virtue of clause __ of the said agreement, to enter, through our agents or any other persons employed or authorised by us, the building, premises or place where the Goods may be or may supposed to be and take possession of the same from you or any other person using or possessing the Goods. 

 

In case, you do not paid your arrears and compensation money and returned the goods, we shall also be constrained to take further necessary action against you in the competent court of law at your risk and cost and without any further intimation, please note. 

 

For & on behalf of the Owner 

 Authorised Representative/Partner

 [CD1]TERMINATION OF HIRE PURCHASE AGREEMENT