TRIPARTITE LEASE AGREEMENT BETWEEN LESSOR, LESSEE AND THE GUARANTOR
THIS
AGREEMENT of Lease made at .................... this .................. day of
................, 2000, between ABC Co. Ltd., a company incorporated under the
Companies Act, 1956
and
having its registered office at .................... (hereinafter referred to
as "the lessor") of the FIRST PART and XYZ Co. Ltd., a company
incorporated under the Companies Act,
1956
and having its registered office at ................... (hereinafter referred
to as "the lessee") of the SECOND PART and M, son of ....................
resident of ..................... (hereinafter referred to as "the
Guarantor") of the THIRD PART.
WHEREAS
on the request made by the Lessee, the Lessor has agreed to purchase the
equipment, more particularly described in the Schedule hereto (hereinafter
referred to as "the Equipment") at the price mentioned in the
proposal form signed by the Lessee.
AND
WHEREAS the Lessee has offered to take the equipment so purchased by the
lessor.
AND
WHEREAS the Guarantor has agreed to stand surety for the payment of lease
rentals and observance and performance of covenants, stipulations and terms and
conditions of this agreement.
AND
WHEREAS the Lessor has agreed to purchase and lease the said equipment to the
Lessee upon the terms and conditions hereinafter appearing.
NOW
IT IS HEREBY AGREED AS FOLLOWS:
1.
In
pursuance of the said agreement and in consideration of the lease rent hereby
reserved and of the covenants, stipulations and terms and conditions herein
contained and on the part of the lessee to be observed and performed, the
Lessor doth hereby grant the lease of the equipment unto the Lessee upon the
terms and conditions hereinafter mentioned for the term of ...............
years commencing on the .................... day of ...................., 2000.
2.
The
Lessee shall pay to the Lessor lease rent at the rates on the days and in the
manner specified in the Schedule hereunder written without deduction or
abatement in advance on the 1Oth day of each calendar month, the first such
payment to be made on the .................... day of .................... and
if the lease rent is not paid on the due dates, the Lessee shall pay interest
thereon at the rate of .................... % per month from the due date till
payment.
3.
The
equipment shall be delivered to the Lessee by the manufacturer at the Lessee's
factory at the address specified in the Schedule and the Lessor will not be
liable for any loss or damage caused to the equipment before or in the process
of transportation or delivery of the equipment.
4.
The
Lessee acknowledges, declares and agrees that:
(i)
the
equipment is of a size, design, capacity and manufacture selected by the
Lessee;
(ii)
the
Lessee has selected the equipment and the manufacturer based on its own
judgment;
(iii)
the
Lessor is not the manufacturer or supplier of the equipment and it has not made
any representations or statement about the equipment and the Lessee disclaims
any reliance on the statement made by the Lessor, if any relating to the
equipment;
(iv)
the
Lessee has not given any warranties express or implied on to any matter
whatsoever including the condition, fitness or merchantability of the equipment
or suitability of the same for any purpose;
(v)
the
Lessor will not be liable to the lessee for any liability, claim, loss, damage
or expenses of any kind or nature whatsoever arising from the leasing,
installation, use or operation of the equipment or its failure to operate or
perform or otherwise howsoever.
5. The lessee shall throughout
the said term:
(i)
Pay
the lease rentals and other amounts regularly and punctually payable
hereunder.
(ii)
Keep
and maintain the equipment in good and substantial repair and condition (fair
wear and tear excepted) and in case the equipment is required to be repaired,
to get the equipment repaired by the person, firm or body nominated by the
lessor and in the event of the lessee failing to do so, the lessor shall be
entitled to take possession of the equipment and get the equipment repaired and
in such case the lessee will forthwith repay to the lessor the full cost of
repairs incurred by the lessor.
(iii) Install, use and operate
the equipment properly and carefully and in conformity with the instructions
given by the manufacturer in this behalf.
(iv) To pay or cause to be paid
all rates, taxes, licence fees, duties, surcharges, registration charges and
other outgoings payable in respect of the equipment, or its installation, use
or operation thereof or in respect of the premises where the equipment may be
placed or kept for the time being and on demand produce the receipts thereof to
the lessor or his authorised representatives and in case of failure by the
lessee to pay the rates, taxes, etc., the lessor shall be at liberty (but not
bound) to make all or any of such payments and to recover the amount thereof
from the lessee forthwith.
(v)
Keep
the equipment at all times in its possession and control at the location shown
herein viz. .................... and will not remove the said equipment
therefrom without the prior written consent of the lessor.
(vi) Not cause or permit
affixation of equipment to any immovable property.
(vii)
Insure
and keep the equipment insured during the term of the lease, at its own cost,
in the name of the lessor against loss or damage by theft, fire, accident, and
other risks and on such terms as the lessor may require with .. company Ltd.
for an amount equal to the full value of the equipment, in the event of the
lessee failing to insure, the lessor may do so and recover the cost thereof
from the lessee forthwith. The Lessee shall pay the insurance premiums and
shall hand over the policies of insurance and receipts of payment of premiums
to the lessor.
(viii)
Not
to make any alteration, addition or improvement in equipment without the prior
written consent of the lessor and any alteration, addition or improvement when
made to the equipment shall be deemed to be part and parcel of the equipment
owned by and belonging to the lessor.
(ix) To permit lessor and all
persons authorised by it at all reasonable times to enter upon the premises
where the equipment is placed or kept for the time being in force and to
inspect and examine the condition of the equipment.
(x)
Obtain
all necessary licences, permissions, etc. for the use and operation of the
equipment and not to use the equipment in contravention of the terms and
conditions of such licences, permissions, bye-laws or regulations of any local
or statuary authority for the time being in force.
(xi) To indemnify and keep
indemnified the lessor against any claim, demand, liabilities, proceedings or
expenses, brought, filed or incurred against him relating to the
transportation, delivery, operation or use of the equipment including injuries
to or death of persons arising from or pertaining to the transportation
possession, installation, operation or use of the equipment.
6.
The
lessee acknowledges, declares and confirms that it holds the equipment as a
mere bailee and the lessor is and will be having sole and exclusive right,
title and interest in the equipment and the lessee will affix or place plate or
makings on the equipment indicating the lessors title and therein.
7.
(i)
If the equipment or any part thereof is lost, destroyed or damaged, the lessee
shall notify you the same to the lessor and receive the moneys from the
insurance company and hold the same on trust for the lessor and pay or apply
the same as directed by the lessor.
(ii)
If
in the opinion of the lessor, the equipment is lost, stolen or damaged to such
extent, which is incapable of repair; the insurance money will be applied to
make good the damages under the insurance policies.
(iii)
If
in the opinion of the lessor. the equipment can be repaired then the insurance
monies shall be applied in repairing or replacing the equipment with similar
type and quality and in such an event the replaced equipment shall be held by
the lessee under the terms of this lease.
(iv)
Save
as provided in above sub-clauses, the loss, theft or destruction of or damage
to the equipment shall not affect the continuance of the lease and the lessee
will continue to be liable to pay lease rentals in respect of the
equipment.
8.
If the lessee-
(i)
fails
to pay lease rentals or part thereof or any other payments payable hereunder
for a period of one month; or
(ii)
fails
to effect insurance of the equipment or fails to pay insurance premiums as and
when due or fails to reimburse the same to the lessor if paid by him; or
(iii)
sells,
mortgage, charge, demise, sub-let or otherwise dispose of or tries to sell,
mortgage, charge, demise, sub-let or otherwise dispose of the equipment;
or
(iv)
fails
to perform or observe its covenants, stipulations, terms and conditions, to be
performed or observed by the lessee under this lease deed or in any other
document executed by the lessee in connection herewith and such failure or
breach continues for a period of one month after service of written notice to
the lessee; or
(v)
pass
a resolution of winding-up or have a petition for winding- up presented against
or if a receiver shall be appointed of the whole or part of the assets,
properties or undertakings of the lessee or shall compound with or enter into
any composition with its creditors;
(vi)
do
or suffer any act or thing or omits to do or suffer any act or thing, in
consequence of which the equipment may or is likely to be distrained,
endangered, attached or taken execution under any legal process or by any
public authority.'
(vii)
if
any judgment or order against the lessee shall remain unsatisfied for more than
fourteen days;
(viii)
if
he abandons the equipment.
Then
and on the occurrence of any such event it shall be lawful for the lessor to
terminate this agreement, without prejudice to any action that it may take
against the lessee for any right or remedy under this agreement or otherwise at
law or to exercise all or any of the following rights or remedies viz:
(i)
to
take possession of the equipment and for that purpose enter upon any premises
where the equipment is or is believed by the lessor to be for the time being
situated and detach and dismantle the equipment;
(ii)
sell,
transfer, assign, lease or dispose of the equipment or part
thereof
by public or private sale with or without notice to the
lessee;
(iii)
require
the lessee to pay to the Lessor all sums due and payable under this lease,
interest on the due lease, rentals, liquidated damages for loss of a bargain
and not as a penalty and other expenses incurred by the lessor due to
termination of the lease before the term of the lease;
(iv)
exercise
any other right or remedy available to the lessor under
any
law for the time being in force.
It
is hereby declared that the lessee shall also be liable to pay all legal fees,
costs and expenses incurred by the lessor from the foregoing defaults or the
exercise of the lessors' remedies and the remedies referred to above are not
intended to be exclusive, but shall be cumulative and shall be in addition to
any other remedy available to the lessor under any law for the time being in
force.
9.
Any express or implied waiver, by the lessor of any default shall not
constitute a waiver of any default by the lessee or waiver of any of the
lessor's right. The lessor shall not be deemed to have waived any of the
lessor's rights or any provision of this agreement or any notice given
hereunder unless such waiver be provided in writing by lessor.
10
If the lessee having paid all lease rentals and other amounts payable under the
lease deed and observed and performed all the covenants, stipulations, terms
and conditions, shall desire to renew this lease and shall give notice of such
desire not less than .................... months prior to the expiration of the
term hereby granted, the lessor shall grant renewal of the lease for a further
period of .................... years commencing on the date of expiration of
this lease on the same terms and conditions as those herein contained including
the right of renewal, but at a lease rental of Rs........... per month.).
11.
Upon
expiry of the lease term hereby granted or renewal hereof or sooner
determination in terms of this lease deed, the lessee shall at its own cost
forthwith deliver or cause to be delivered the equipment to the lessor at such
place as may be intimated by the lessor to the lessee.
12.
Time
shall be the essence of this agreement in so far it relates to the observance
or performance of all or any of its obligation, covenants or liabilities
hereunder by the lessee.
13.
During
the term of this lease, the lessee shall submit its Balance Sheet and Profit
and Loss Account as and when they are ready and other information, reports and
statements as may be required by the lessor.
14.
This
agreement is personal to the lessee and it shall not transfer, assign or
otherwise dispose of its rights or obligations hereunder.
15.
The
Guarantor hereby guarantees the payment of lease rentals and other moneys
payable by the lessee to the lessor under these presents and observance and
performance of the covenants, stipulations, terms and conditions by the lessee.
The Guarantor also hereby agrees to pay on demand any money due or which
becomes payable under this agreement and not paid by the lessee. The guarantor
hereby further agrees that any time granted to the lessee or any indulgence
shown to him in respect of this agreement shall not prejudice the lessor's
right or relieve the guarantor from his guarantee, which shall be a continuing
guarantee and his liability will be coextensive with that of the lessee and it
will not be necessary for the lessor to serve any notice to the guarantor for
any default committed by the lessee or any concession, or indulgence shown by
the lessor to the lessee.
16.
The
lessor hereby assigns to the lessee the right of warranties provided by the
manufacturer of the equipment and the lessee shall be entitled to make any
claim for any defect or deficiency, for any breach of condition or warranty
directly against the manufacturer and for this purpose if the lessee requests
to the lessor, the lessor shall authorise the lessee for enforcing due
performance of any warranties or performance guarantees relating to the
equipment.
17.
All
disputes, questions, differences and claims whatsoever arising from this agreement
between the parties and/or /their successors or assigns touching these presents
or any right or liability arising from these presents shall be referred to the
arbitration of two arbitrators, one to be appointed by each party and such
reference shall be deemed to be reference under and subject to the provisions
of Arbitration Act, 1940 or any statutory modification or re-enactment thereof
for the time being in force and arbitration proceedings will be held at
....................
18.
Any
notice or letter required to be given herein shall be given to the parties
hereto in writing by Registered Post Acknowledgment Due at the addresses above
mentioned or such other address as the parties may hereafter substitute by
notice in writing to the other parties.
19.
All
prior agreements or arrangements whether oral or written between the parties or
relating to the lease of the equipment by the lessor to the lessee shall be
deemed to be cancelled and superseded by this agreement.
20.
This
lease deed shall be executed in triplicate. The original shall be retained by
the lessor, duplicate by the lessee and triplicate by the guarantor.
21.
The
stamp duty and all other expenses in respect of this lease deed and duplicate
thereof shall be borne and paid by the lessee. (22) The headings to the clauses
of this agreement are meant only for convenience of reference and shall not in
any way be taken into account in the interpretation of these presents.
22.
It
is hereby agreed between the parties that this agreement shall be subject to
the exclusive jurisdiction of the City Civil Court at
.....................
IN
WITNESS WHEREOF the parties hereto have executed these presents and duplicate
and triplicate copy thereof on the day and year hereinabove written.
The
Schedule above referred to
Signed
and delivered by the within named ABC Co. Ltd.,
the
lessor by the hands of Shri .....................
Managing
Director thereof
Signed
and delivered by the within named XYZ Co. Ltd.,
the
lessee by the hands of Shri ............... Managing
Director
thereof
Signed
and delivered by the within named M, the guarantor
WITNESSES;
1.
2.
3 Comments
You’re certainly a great writer. Your post provided me with many helpful pieces of information. Equipment Leasing Solutions.
ReplyDeleteObviously, one of the most important things to consider when choosing an office cleaning service is the price. You don't want to overpay for something that you may not need, but you also don't want to go too cheap and end up with low quality services. Price should be a major factor in your decision-making process. office cleaning service
ReplyDeleteThanks for the Valuable information and it is really helpful information for me. Once again Thank you so much for sharing with us. Inventory Management Software
ReplyDeleteThank you for your response. It will help us to improve in the future.