Hire Purchase for
Live Stock
THIS AGREEMENT OF HIRE-PURCHASE is made entered into at ....................... this .................day of ................ Between Mr. ................................. residing ........................... hereinafter referred to as 'the Owner' of the One Part and Mr..................., residing at ......................... hereinafter referred to as 'the Hirer' of the Other Part ;
WHEREAS the Owner is carrying on business of ......... AND WHEREAS the Hirer wants to expand his business and therefore agreed to take on hire in number of live stock from the owner. AND WHEREAS the Owner has agreed to give on hire the number of live stock mentioned in the Schedule hereunder written with the option to the Hirer to purchase the same at the end of the hire period hereinafter mentioned, on the following terms.
NOW IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
1. The Owner agrees to give on hire and the Hirer agrees to take on hire the number of live stock particularly mentioned in the Schedule hereunder written for a period of ................... years from the date hereof. The Hirer has taken over delivery of the said live stock from the Owner.
2. The Hirer shall pay as and by way of hire charges a sum of Rs................ per month to be paid in advance on or before the 7th day of each month from the date hereof during the said hire period.
3. The Hirer has given by way of collateral security a promissory note for the amount of each monthly hire-charges and in the event of default in payment of any sum due under this agreement the Owner shall be entitled to transfer or negotiate the said promissory note (or the bill of exchange) and the transferee or the holder thereof shall take the same free from the equities and defences as the holder in due course. Neither the taking of such a note (or bill) nor the transfer or negotiation thereof shall suspend or prejudice the remedies of the Owner under this agreement. The Hirer hereby waives the presentment and notice of dishonour by the Owner or by the holder of the said pro-note (or the bill).
4. The Hirer has also paid to the Owner a sum of Rs................ in consideration of the option to purchase the said livestock.
5. The Hirer shall be liable for loss suffered by the Owner on account of the said livestock being stolen, or becoming useless due to any accident by fire or any other cause.
6. The Hirer shall insure and keep insured the said livestock during the period of hire for a sum of atleast Rs................... and shall pay premium thereof regularly. The Insurance Policy will be obtained in the name of the Owner to be handed over to the Owner. The receipt for payment of premium will also be produced for the Owner's inspection. If the Hirer fails to insure the said article at any time, the Owner, without prejudice to his other rights, will be entitled to insure the same and the Hirer will be liable to pay the premium paid by the Owner during the subsistence of this agreement.
7. If the Hirer commits breach of any covenant or any term herein contained, then the Owner will be entitled to terminate this agreement by one month's prior notice to the Hirer and unless the breach is remedied by the Hirer or condoned by the Owner within the notice period, this agreement will stand terminated on the expiration of the notice period.
8. The Owner shall be entitled to the produce or progeny of the livestock and the same shall be deemed to be included in the live stock given on hire.
9. The Hirer will feed the livestock properly at his own expense. The yield from the live stock will belong to the Hirer.
10. At the expiration of the hire period of ...................... years, the Hirer shall have the option (which will be exercised by giving at least one months' notice prior to the expiration of the said period) to purchase the live stock at the hire-purchase price of Rs......... less the hire charges paid by the Hirer during the said period.
11. On termination of the Hire agreement the Hirer shall pay (i) all hire charges in arrears and (ii) the damages if any suffered by the Owner, and (iii) a sum equal to the amount if any by which one half of the hire purchase price exceeds the total of the sums paid as the sums due in respect of the hire purchase price immediately before the termination or a sum equal to the loss sustained by the Owner in consequence of the termination of the agreement whichever is less.,
12. The Hirer will have no right to terminate this agreement before the completion of the period of hire above mentioned under any circumstances.
13. If the Hirer does not exercise the option to purchase as aforesaid, agreement will come to an end on
the expiration of the said hire period of years, and thereafter the Hirer shall return the said livestock to the owner forthwith, but for everyday delay in delivering the livestock to the Owner the Hirer will be liable to pay a sum of Rs ................. as damages.
14. In the event of any dispute arising between the Owner and the Hirer under or in respect of this agreement or in respect of any claim arising out of this agreement the same shall be referred to a common Arbitrator for arbitration and if no common arbitrator is agreed upon, to two arbitrators, one to be appointed by each party and the arbitration will be governed by the Arbitration Act for the time being in force.
THE SCHEDULE ABOVE
Signed and delivered by the )
withinnamed Owner Mr ...................... )
in the presence of .................... )
Signed and delivered by the )
withinnamed Hirer Mr ............. )
in the presence of ....................... )