Agreement For Hire Of Machinery Legal Draft Template

An Agreement made the

.............. day of ..................., 2000, between a son of B resident of

...................................... (hereinafter called the

"Owner") 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 the machinery and is not being used by him, as he has closed his

factory due to his personal reasons;and Whereas on the request of the

hirer, the owner has agreed to hire give the said machinery on hire to the

hirer on the terms and conditions machinery hereinafter appearing.Now These Presents

Witness as Follows:1.

The

owner shall let and the hirer shall take on hire the machinery, specified in

the Schedule hereunder written (hereinafter referred to as the said machinery)

from ............... for a term of ............. years.2.

The

hirer shall, during the continuance of this agreement, pay to the owner without

previous demand by way of rent for the hire of the said machinery the monthly

sum of Rs................ for the use and possession of the said machinery, the

first payment to be made an the ............ day of ............ 19 ........

next and each subsequent payment on the ............... day of each succeeding

month during the said term.3.

The

hirer will not sell, assign, mortgage, pledge, underlet or otherwise deal with

the said machinery but will keep the said machinery in his own possession and

will not remove the said machinery from the premises where such machinery is

for the time being installed without the previous consent in writing of the

owner.4.

The

hirer shall use the said machinery in a skilful and proper manner and shall at

his own expenses keep the said machinery in good and substantial repair and

condition (reasonable wear and tear excepted) and will allow the owner, his

servants or agents at all reasonable times to have access to the said machinery

and to inspect the state and condition thereof.5.

The

hirer shall keep the said machinery insured in the sum of Rs ................

against fire and loss, damage or risk from whatever cause arising with some

insurance company in the name of the owner and deliver the policy of such

insurance to the owner and duly and punctually pay all premium necessary for

effecting and keeping such insurance in force and produce the receipt for all

such payments to the owner on demand and will keep the owner indemnified

against all loss or damage to the said machinery from whatever cause the same

may arise.6.

If

the said machinery is destroyed by fire or lost by theft, all moneys received

in respect of such insurance shall be received by the owner, who may apply such

moneys either in making good the damage done or in replacing the said machinery

by other articles of similar description and quality and such substituted

articles shall become subject to hire in the same manner as the articles for

which they shall have been substituted.7.

The

hirer may at any time determine the hiring by giving ............. months

notice and the hiring shall from the expiration of the said notice determine

and the hirer shall not be entitled to any credit or allowance in respect of

any payment previously made by him to the owner.8.

If

the hirer shall make default in punctual payment of the monthly sums so to be

paid by him for the hire of the said machinery or if he shall fail to observe

and perform the terms and conditions of this agreement on his part to be

observed and performed, the owner may determine the hiring without any notice

and it shall be lawful for him to retake possession of the said machinery and

for that purpose the owner, his servants or agents may enter into or upon any

premises where the said machinery is installed and the hirer will remain liable

for the payment of money due to the owner under this agreement or damages for

breach thereof.9.

The

hirer hereby covenants with the owner that he will not do or omit to do any act

which may result in seizure and/or the confiscation of the said machinery by

the Central or State Government or local authority or any public officer or

authority under any law for the time being in force.10.

The

hirer shall pay all licence fees, taxes, etc. payable to the Government, local

authority in respect of the said machinery and if the owner is compelled to pay

such licence fees, taxes, etc., the hirer shall forthwith repay the said

amounts paid by the owner.11.

Any

time or indulgence granted by the owner shall not affect the strict rights of

the owner under this agreement.12.

In

case of any dispute or difference arising between the parties regarding the

meaning, construction, interpretation, breach or fulfillment or non-fulfillment

of the terms and obligations of these presents or any clause or condition thereof,

the same shall be referred to the decision and arbitration of two arbitrators,

one to be nominated by each party which arbitrators shall before taking upon

themselves the burden of reference, appoint an umpire. The submission shall be

deemed to be a submission to arbitration within the meaning of the Indian

Arbitration Act, 1940 or any statutory modification thereof. The award of the

Arbitrator or Arbitrators, as the case may be, shall be final and binding on

the parties.13.

The

stamp duty and other incidental expenses relating to the execution of this

Agreement will be borne by the hirer.IN WITNESS WHEREOF,

the parties hereto have executed these presents, the date, month and year first

hereinabove mentioned.The Schedule above

referred toSigned and delivered

by A, the within named ownerSigned and delivered

by C, the within named hirerWITNESSES;1.2.