Agreement for
Hire-Purchase of a Motor Vehicle
This Agreement made
at ............. this ............ day of .........., 2000, between A son of B
resident of ............. (hereinafter called "the owners") of the
One Part and C son of D resident of ... ...................... (hereinafter
called "the hirer") of the Other Part.
Whereas the owner is
the owner of a motor vehicle, more particularly described in the Schedule
hereto and the hirer has approached the owner to let the said vehicle on hire
to him, to which the owner has agreed and has assured the hirer that he shall
have and enjoy quiet possession of the said vehicle.
And Whereas the owner
has further assured the hirer that he shall have the right to sell the said
vehicle at the time the property is to pass and the said vehicle is free from
any charge or encumbrances in favour of any third party at the time when the
property is to pass.
And Whereas the hirer
has inspected the said vehicle and is satisfied about the same and considers it
fit for the purposes for which he requires the same.
Now It Is Agreed
Between The Parties as Follows:
1.
The
owner will let and the hirer will take on hire the vehicle more particularly
described in the Schedule hereto.
2.
The
owner has delivered the said vehicle to the hirer and has vehicle allowed the
hirer to use the said vehicle in the usual manner.
3.
In
consideration of the delivery of the said vehicle to the hirer, the latter has
paid in advance a sum of Rs. .............. as first installment on hire (the
receipt whereof the owner hereby acknowledges) and will punctually pay to the
owner at his place the sum of Rs. ............. every calendar month by way of
rent for the hire of the said vehicle, the first payment to be made on the
............. day of ............. and each subsequent payment on the
............. day of every succeeding month.During
the continuance of hiring, the hirer shall-
i
Not
sell, assign, pledge, mortgage, underlet, lend or part with the possession of
the said vehicle and not allow the said vehicle to be used by anybody else or
kept or detained or run for the use of any other person.
ii
Not
take the said vehicle out of the city of ............. unless he has obtained a
permission in writing from the owner in that behalf and if the owner grants
permission subject to certain terms and conditions, the hirer shall abide by
all the terms and conditions imposed in respect of such permission.
iii
Pay
all licence duties, fees, registration and other charges taxes, payable in
respect of the said vehicle and keep the said vehicle in a good repair
condition and working order and will permit the owner and persons authorised by
him to have access to the said vehicle for the purpose of inspecting the condition
thereof. In case the hirer fails or neglects to cause the said vehicle to be
repaired or kept in a proper state of repair, the owner shall be entitled but
shall not be bound to do ,so, to seize or cause the said vehicle to be seized
and to get the same repaired and to keep the said vehicle in his custody till
the hirer pays the bills for repair of the said vehicle.
iv
Keep
the said vehicle insured and kept insured so long as the hiring shall continue
in the joint names of the owner and the hirer against all risks and the hirer
shall pay all the premiums payable to the insurance company. On the hirer
becoming the owner of the said vehicle under the terms of this agreement, the
owner will transfer to the hirer the benefit of any insurance policy then current
relating to the said vehicle.
v
Make
good to the owner all damages to the said vehicle (fair wear and tear excepted)
and pay the owner the full value of the said vehicle in the event of its total
loss.
vi
Indemnify
the owner against claims by third parties arising by accident caused by the
said vehicle until the said vehicle is returned to the owner or purchased by
the hirer in terms of this agreement.
vii
Not
use or permit or suffer the said vehicle to be used in contravention of any law
for the time being in force.
1.
2.
3.
4.
If
the hirer shall duly observe and performs all the conditions herein contained
and on his part to be observed and performed and shall pay to the owner the sum
specified in clause 3 hereof, together with all other sums if any payable by
him to the owner under the provisions of this Agreement, then the hiring shall
come to an end and the said vehicle 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 the hirer shall have the option of purchasing the said vehicle
at any time during the period of hiring by paying in one lump sum the balance
of all the hire hereinbefore mentioned and other expenses incurred by the
owner. Until all such payments as aforesaid have been made, the said vehicle
shall remain the property of the owner.
5.
The
hirer may at any time terminate the hiring by returning the said vehicle at his
own cost and risk to the owner at his place of address for the time being.
6.
If
the hirer shall make default in payment of any monthly sum payable hereunder
for ......... days after the same have become due or shall fail to observe or
perform any of the terms and conditions of this agreement, the owner may
without prejudice to his claim for arrears of hire or damages (if any) for
breach of this agreement forthwith terminate the hiring without notice and
retake physical possession of the said vehicle himself or through his agents or
servants and the hirer shall not object to the retaking of possession of the
said vehicle by the owner or his agents or servants and/or by written notice to
the hirer determine this agreement and the hiring hereby constituted. On such
termination, the hirer shall immediately return the said vehicle to the owner
at his place of address for the time being and the hirer shall pay the owner a
sum of Rs............... every month until the said vehicle is returned to the
owner.
7.
No
neglect, delay or indulgence on the part of the owner in enforcing any terms or
conditions of this agreement shall prejudice the rights of the owner hereunder.
8.
The
agreement is personal to the hirer and the rights of the hirer shall not be
assignable or chargeable by him in favour of third party.
9.
In
the event of the hiring being determined by the hirer or by the owner under
clause 6 hereof, the hirer shall forthwith return the said vehicle to the owner
at the hirer's expense. The determination of the hiring as aforesaid shall not
affect or prejudice any claim the owner may have against the hirer for arrears
of hire payments or for damages for breach of this agreement or his right to
enforce such claim by action or otherwise.
10.
The
owner has permitted the hirer to have the said vehicle registered 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 such registration in
favour of the owner when he returns the said vehicle to the owner under the
terms of this agreement.
11.
The
agreement shall determine if the hirer commits any act of bankruptcy or makes
any arrangement with his creditors or on presentation of a petition in the
court for adjudicating the hirer as an insolvent or on the appointment of a
receiver of the properties of the hirer or if an application is made by any
creditor or other person against the hirer for the attachment of the said
vehicle.
12.
All
disputes, differences and/or claims, arising out of this agreement shall be
settled by arbitration in accordance with the provisions of Indian Arbitration
Act, 1940 or any statutory modification thereof and shall be referred to the
sole arbitration of Shri .................... or in case of his death, refusal,
neglect, incapability to act as an arbitrator to the sole arbitration of
Shri...................... The award given by the arbitrator shall be final and
binding on the parties.
13.
The
parties hereby admit that this agreement has been fully explained to them and
they have understood the meaning of all the clauses of this agreement and they
have signed this agreement with full understanding of the obligations herein.
IN WITNESS WHEREOF,
the parties have hereunto set and subscribed their hands on the date and year
above mentioned.
Signed and delivered
by the within named owner
Signed and delivered
by the within named hirer
WITNESSES;
1.
2
