Agreement For Hire Purchase Of A Motor Vehicle Legal Draft Template

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 ownerSigned and delivered

by the within named hirerWITNESSES;1.2