Agreement For Sale Of Technical Equipment Legal Draft Template

This Agreement is

made at ... this... day of ... Between M,. A residing at ... hereinafter

referred to as 'the Seller' of the One Part and M/s. A B & co. Ltd., a

Company registered under the Companies Act. 1956. and having its registered

office at ... hereinafter referred to s 'the Company' of the Other Part;Whereas the Seller

has developed and produced a machine for the manufacture of ... and proposes to

sell the amend the Company has agreed to purchase the same on 'turn key' basis

on the following terms and conditions agreed to between the parties.Now It Is Agreed

Between The Parties Hereto As Follows:-1.

The

Seller agrees to sell and the Company agrees to buy the machine and equipment,

the particulars of which are given in the Schedule hereunder written and which

is useful in the manufacture of... and which good the Company desires to

manufacture.2.

The

said machine and equipment will be delivered by the Seller at his premises

at... within two weeks from the date hereof and it will be the responsibility

of the Company to transport the same from the said premises to the Company's

factory at ... at the Company's cost.3.

The

price of the said machine and equipment Is fixed at Rs. ... out of which the

Company shall pay to the Seller a sum of Rs. ... as earnest money and In part

payment of the said price before taking delivery of the said machine and

equipment and the balance will be paid within a week from the installation of

the said machine and equipment at the Company's factory and commencement of

operation thereof.4.

The

ownership of the said machine and equipment mill remain vested with the Seller

until the full price thereof is paid to him and the title to the said machine

and equipment will pass to the Company only after the payment of the price and

other moneys payable hereunder to the Seller in full.5.

The

said machine and equipment will he insured by the Company in the sum of atleast

Rs.... for the period commencing from the time the same is removed from the

Seller's premises until it Is delivered at the Company's factory. The insurance

policy will be in the name of the Seller and against the risk of fire, accident

and theft. The insurance premium will be paid by the Company and will be deemed

to be part f the transport charges.6.

Before

removing the said machine and equipment from the Seller's premises the Company

hall keep ready the place in the Company's factory where it is to be installed

by providing necessary foundation, electric supply, water supply and other

requirements for installing the said machine and equipment7.

The

responsibility of installing the said machine and equipment and putting it into

operation will be that of the Seller and the Seller shall make available his

Technical experts, mechanics and other required person or persons. All the

expenses incurred during the course of installation and commencing operation

will be that of the Company Including expenses on account of boarding and

lodging and travelling of the personnel of the Seller sent for Installation.8.

The

installation will be completed by the Seller within eight days from the date of

the said machine and equipment reach the Company's factory but if the

installation is delayed beyond eight days due to default on the part of the

Company in supplying all necessary things and in making all arrangements for

Installation including supply of electricity labour and other things the

Company will be liable to pay in addition to expenses mentioned above, the fees

or remuneration required to be paid to the Seller's staff of technical experts,

mechanics and others also. If, however, the delay beyond eight days for

installation is on account of the Seller, the Seller will bear and pay all such

additional expenses.9.

All

the taxes and other charges payable in respect of the said machine and

equipment will be on the Company's account.10.

The

Seller shall supply one item of each of the spare parts of the said-machine and

equipment free of cost but If-any additional items are required the Company

will pay the price thereof separately against delivery.11.

If

the Company fails to pay to the Seller the said balance price and other

expenses if any as per the invoice sent by the Seller to the Company, within a

week from the time the said machine is installed and put into operation, the

Seller will be entitled to cancel this agreement by one week's notice to that

effect and in that event the Seller will be entitled to remove the same from

the Company's factory. The costs of such removal and transportation from the

Company's factory premises to the Seller's said premises will be payable by the

Company on demand. If, however, the Seller is not able to remove the said

machine and equipment due to any obstruction on the part of the Company or any

legal action taken by the Company, the Company will be liable to pay

compensation at the rate of -Rs. ... per day until the said machinery is

removed by the Seller.12.

The

Seller warrants that the said machine and equipment is free from any mechanical

defect in workmanship and quality of the material used therefor under normal

use and service. The Seller further guarantees that if the said machine and

equipment goes out of order or requires repairs due to any such mechanical

defect or in workmanship in the course of one year from installation (being the

guarantee period) the Seller will carry out the repairs at his own costs unless

the defect is found to be due to improper use or mishandling of the said

machine or due to inefficiency or negligence of the staff of the Company

working on the said machine in which case the costs of repairs will be on

account of the Company.13.

Any

spare parts required to he replaced within a period of one year from the date

of installation of the machine will be supplied by the Seller free of cost

provided that, if the defect is developed or repairs are required due to any

default in electric connection or electric equipment used in connection with

the said machine, the Seller will not be liable to remove the defect or carry

out repairs free of costs; provided further that, during the said guarantee

period the Company will not get the machine repaired or defect removed with the

help of the mechanics or technical experts except those sent by the Seller.

Similarly, If the repairs are required to be carried out due to any accident in

the Company's factory and for which the Seller is not responsible, the Seller

will not be liable to carry out the repairs or remove the defect free of costs

during the guarantee period.14.

During

the said guarantee period the Seller shall have the right to visit and inspect

the said machine and equipment through his technical experts and mechanics so

as to keep the same in working condition and the Company shall provide all

facilities required in that connection. The Company shall carry out the

instructions and directions given by the Seller or his technical experts from

time to time. The Company shall also provide sufficient space in its factory

for storing and keeping the test equipment and spare parts of the Seller.15.

The

guarantee period mentioned-above will cease to exist if during the said period

the Company either sells the said machine and equipment to anybody else or

shifts the machine and equipment to any other place in the said factory or

otherwise.16.

If

any dispute arises between the parties hereto in respect of this agreement or

in connection with any claim by one against the other the same will be referred

to arbitration of a common arbitrator if agreed upon failing which, to two

arbitrators one to be appointed by each party to the dispute and the arbitration

will be governed by the Arbitration Act, 1940.THE SCHEDULE ABOVE

REFERRED TOIN WITNESS WHEREOF

the parties have put their respective signatures hereunder the day and year

first hereinabove written.Signed and delivered

by the withinnamed Seller ...in the presence of

... ...Signed and delivered

for and on behalf of the withinnamedM/s A B & Co.

Ltd., by its Managing Director ...in the presence of

... ...