Hire Purchase Agreement for Furniture

THIS AGREEMENT OF HIRE-PURCHASE is made and entered at……………………  this day of ……………………………..  between M/s …………………. and a Company registered under the Companies Act 1956 and having its registered office at ……………….. hereinafter referred to as the Company of the One Part and M/s ……………..………………. a partnership firm consisting of (1) and (2) as partners hereinafter referred to as the hirer of the Other Part as follows

WHEREAS the Company is carrying on business in furniture of different types and requires for office and home purposes. AND WHEREAS the Hirer has opened a new office at ……………………. and requires office furniture of different types. AND WHEREAS the hirer has requested the Company to supply some pieces of furniture, a list of which is given in the Schedule hereunder written on hire purchase basis which the Company has agreed to do.

NOW it is agreed by and between the parties as follows :

(1) The execution of this agreement the company will deliver to the Hirer the several items of furniture mentioned in the Schedule hereunder written. The same will be delivered at the office of the Hirer at the costs of the Company.

(2)  The price of the said furniture is fixed at Rs ……. The Hirer shall pay an aggregate sum of Rs …………………ever month to the Hirer in advance as and by way of hire charges. The first monthly payment has been made on the execution of this agreement and the subsequent payments will be made on or before the 7th day of each succeeding month.

(3)  The Hirer has also deposited with the Company a sum of Rs …………. as security for the said furniture and in part payment of the said price.

(4) If the Hirer pays the said price of Rs ………... less the said deposit amount and less the amount of aggregate monthly instalments paid upto of payment aforesaid with interest on such unpaid amounts at ……………………. P.C. per annum from the date of default till the said date hereinafter mentioned at any time within one year from the date hereof i.e. on or before the ……………….. day of …………………. the said furniture shall be deemed to have been sold by the Company to the Hirer.

(5)  If the Hirer does not exercise the said right or option to purchase the furniture on or before the said date this hire agreement shall stand terminated on the expiration of the said date and that the Hirer shall return the said furniture to the Company in the same condition as at the date of this agreement subject to normal wear and tear and the company shall refund to the Hirer the said deposit amount less the arrears of monthly instalments if any till the date of termination and any other amount payable by the Hirer to the Company under this agreement by way of damages or
otherwise.

(6)  If any item of the said furniture is damaged the hirer shall be liable to pay the costs of repairs to the same as will be assessed by the Company. If any item is found missing or beyond repairs the Hirer shall pay the price thereof as per the Catalogue price of the Company.

(7) The Hirer undertakes that it will not hypothecate or pledge any of the items of the said furniture nor remove the same from the said office of the Hirer without the prior consent of the Company, during the pendency of this agreement

(8) The said period of one year for exercising the option may be extended by the Company on the request of the Hirer on such terms as may be agreed upon.

The Schedule above referred to

Signed for and on behalf of the said ……………. 
Director…………………

Signed for and on behalf the 
Hirer by its partner ……………………