E.D.P.M SBA: Sample of a Hire Purchase Agreement
An agreementmade this ……….. day of ………….. betweenAB etc. (hereinafter called the owner),of the one part and CD etc. (hereinafter called the hirer), of the other part,
whereas it isagreed as follows:
1.The owner will let and the hirer will take on hire the goods andeffects mentioned and comprised in schedule hereto annexed, for the term of……. months (or years) from the datehereof, at a rent of Rs. ………… tobe paid by instalments in the manner hereunder stated subject nevertheless thetermination clause hereunder contained.
2.The hirer already paid to theowner the sum of Rs. ……….. beingthe first month’s rent (the receipt of which sum the owner herebyacknowledges), and the hirer shallcontinue to pay to the owner a further sum of Rs. ………. per month, as instalment of such rent on the…………… day of each succeeding month during the said term, the nextpayment to be made on the ……….. day of ………..
3.The hirer shall, until and unlessall instalments of rent are paid keep and maintain all the said goods andeffects in good order and condition and preserve them against loss or injury bytheft etc. (reasonable wear and tear only excepted), and make good all damageswhether accidental or otherwise, and at all times allow the owner, his agentsor servants to inspect the same whenever demanded. In the event of the goodsbeing damaged or destroyed beyond repairs or replacement or lost by fire, theftor any other cause, the hirershall nevertheless remain liable for and pay the owner all remaininginstalments due on the goods.
4.The hirer shall not, without theowner’s previous written consent, remove or permit removal of the said goodsand effects from the above address of the hirer;such consent shall not be unreasonably withheld.
5.The hirer shall not—until andunless he becomes the full owner—sell, assign nor encumber or subject the goodsor suffer any decree or order of any court whereby the goods or any portion thereofmay be attached or charged, encumbered or otherwise seized or taken inexecution nor commit any act of insolvency nor enter into any scheme orcomposition with his creditors.
6.The hirer shall punctually andregularly pay or cause to be paid the rates and taxes payable by him in respectof the premises, where the said goods and effects may for the time being bekept, and if any such rates and taxes shall not be paid on the exact daywhereon the same shall become due, this agreement shall thereupon and therebystand terminated even without notice or demand.
7.If the hirer fails and/or neglectsto carry out any of the terms of this agreement, the owner may (withoutprejudice to his right to recover any arrears of rent and damages for breach ofthis agreement) terminate the hiring and retake possession of the said goodsand effects, whether the same shall be in the possession of the hirer or of any other person, and forthat purpose the hirer herebygives the owner, his agents orservants all facilities to enter in or upon any premises occupied by the hirer, to search for, seize and retakepossession of all the said goods and effects without being liable in any wayfor any action for trespass or otherwise or at all.
8.Notwithstanding anything hereinbefore contained, the hirer may terminate this agreement at any time by surrenderand return of the said goods and effects to the owner but nevertheless he shallremain liable for the balance of instalments still to be paid.
9.The hirer may, at any time duringthe term of hiring, become the absolute owner of the goods and effects herebyhired by paying to the owner all arrears of rent (if any) and all rents whichwould become due on this agreement during the said term without any discount ordeduction or, subject to a discount of ……… per cent, on all paymentsstipulated.
10.The hirer shall keep the goodsinsured against fire, theft, injury, accident and also third party risks in thename of the owner or in their joint names and regularly and punctually pay eachpremium as and when the same shall become due.
11. Any time concession orindulgence granted or shown on the part of the owner will not prejudice hisrights under this agreement.
12.(To be added in case of guarantee to the performance of the hire). Inconsideration of the delivery of the goods to the hirer I, EF, son of etc.,stand surety for the hirer for due performance of the terms and conditions ofthis agreement and shall remain liable to the owner for payment of all sums asand when shall be due and payable by the hireras rent, damages, costs, charges and expenses or on any other account under andby virtue of this agreement.
And I further declare that any time indulgence, forbearance, waiver or variation of the termsof this agreement shall not operate as a discharge of my liability as suretyunder these presents.
In witness hereof theparties hereto have executed these presents on the day, month and year firstabove-written.
Signed,sealed and delivered by AB
Signed,sealed and delivered by CD
Signed,sealed and delivered by EF