Agreement Of
Hire Purchase Of A Motor Truck
THIS AGREEMENT made at ....... this
...... day of ...... between M/s. A B C and Co., a partnership firm by its
authorised partner Mr........ and having its office at ........ hereinafter
referred to as the Dealer of the one part and M/s. XYZ Transport Company
Limited. a company registered under the Companies Act, 1956 and having Its
registered office at ....... . hereinafter referred to as the Company of the
other part.
WHEREAS the Dealer Firm is a dealer in
transport vehicles manufactured by M/s ........ and carries on the business of
selling, buying, giving on hire, transport vehicles of different makes and
capacities.
AND WHEREAS the company is carrying on
the business of transporting goods by motor trucks in India.
AND WHEREAS the Company has offered to
the Dealer to supply one motor truck to the Company on hire purchase basis
which the Dealer has agreed to do on the following terms and conditions.
AND WHEREAS the Company has selected
the motor truck having a load carrying capacity of ........ tons and
particulars of the truck as to the registration number, chassis number, make
etc. are given in the schedule hereunder written. The said motor truck is
hereinafter referred to 'as the said vehicle'
NOW IT IS AGREED BY AND BETWEEN THE
PARTIES HERETO AS FOLLOWS
(1) The Dealer gives on hire and the
Company takes on hire the said vehicle as from the date hereof on the
followings terms and conditions. The said vehicle has been thoroughly inspected
by the company's representative and is accepted to be in good working or
running condition and the company has taken possession thereof.
(2) The period of hire shall be
..... months from the date hereof subject to the hire being liable to earlier
termination as hereinafter provided.
(3) The Company shall pay as and by
way of hire charges a sum of rupees ....... per month in advance. The
proportionate hire charges for the current month upto the last date of the next
month namely rupees . . .... have been paid by the company to the Dealer on the
execution of this agreement. (and the receipt thereof Is admitted by the
Dealer) and the further hire charges will be paid on or before the fifth day of
each English Calendar Month. The first of such payment to be made on or before
fifth day of the next following month and subsequent payments to be made on or
before the fifth day of each and every succeeding month during the said hire
period.
(4) Provided if at the end of the
said period or at any earlier time the Company pays the sum of rupees.... being
the price of the said vehicle including taxes and other charges less the
aggregate of the monthly hire charges actually paid by the company to the
Dealer, the company shall have the option to purchase the vehicle by giving one
months notice prior to the expiration of the said period and on the payment of
such amount as agreed and exercising the said option the Company shall be
deemed to have purchased the vehicle and become the full owner thereof.
(5) If before the end of the said
hire period the company does not exercise the said option to purchase then on
the expiration of the said period or if this agreement is terminated earlier as
hereinafter provided then on the termination of the agreement the company shall
return the vehicle in good working order to the Dealer forthwith falling which
the company will be liable to pay as liquidated damages a sum of rupees .....
per day till the vehicle is delivered to the Dealer as aforesaid or taken
possession by the Dealer under the power given to him as hereinafter mentioned.
(6) The Company covenants and
undertakes that during the said hire period
(a) the Company shall use the
vehicle with all care as a prudent man would do and keep the same In good
condition In repairs and running order
(b) the Company shall not transfer
the vehicle by way of sale or by, hypothecation pledge or otherwise or part
with possession thereof In any manner whatsoever.
(c) The Company shall pay all taxes
and other dues payable in respect of the said vehicle payable to Government or
any other authority duly and punctually and will not allow the vehicle to be
attached or seized for recovery of such dues.
(d) The Company shall while
transporting goods see that proper octroi duty is paid at every octroi naka on
the goods transported and will not allow the vehicle to be detained by the
octroi authority for non payment or for any other illegal act.
(e) The Company shall not carry or
transport through the vehicle any smuggled or otherwise objectionable goods.
(f) The Company and its driver
shall observe and perform all the rules and the regulation applicable to such
vehicle regarding delivery. transporting of goods or otherwise.
(g) The Company shall obtain
necessary permits for taking the vehicle to any part of the country as required
by law and shall not take the vehicle to any State without such permit.
(h) The Company shall not allow the
vehicle to be driven by an unlicensed driver or by a driver of less than two
years experience and holding a clean licence. to drive.
(i) The Company shall keep the
Dealer always informed in writing of the movements of the said vehicle from
time to time.
(j) The Company shall allow the
Dealer or his representative to take inspection of the vehicle at any time and
at any place.
(k) The Company shall always keep
the said vehicle insured as required endorsed in favour of the Dealer and will
be handed over to the Dealer.
(l) If has a result of any
accident the vehicle is damaged the company shall repair the damage properly.
Any accident suffered by the said vehicle shall be immediately communicated in
writing to the Dealer and the insurance claim shall be lodged with the
Insurance Company in proper time.
(m) The Company shall indemnify and
keep indemnify the Dealer against all claims for damages or loss due to accident
or otherwise either to the said vehicle given on hire or to any other vehicle
or to any person or persons and against all costs charges and expenses on
account of such claims incurred or suffered by the Dealer.
(7) And it is further agreed that
until the company exercises the option to purchase, the ownership of the
vehicle will remain with the Dealer. The vehicle will be remaining in the same
name in which it is now registered and registration will not be changed. This
hire purchase agreement will be noted in the Register as provided by the Motor
Vehicle Act.
(8) And is further agreed that if
the company makes default in payment of any monthly hire charges on the due
date thereof or commits breach of any covenant term or condition herein
contained or If the company is ordered to be wound up by Court or goes Into
voluntary liquidation or the said vehicle is attached by Government or any
other authority or any creditor or otherwise or a receiver Is appointed thereof
by any Court then and in any of the said events the Dealer will have the option
to terminate this agreement by giving fifteen days prior notice In writing to
the Company and on the expiration on such notice period this agreement shall be
deemed to be terminated.
(9) If on the expiration of the hire
period or earlier termination thereof as aforesaid (and the company not having
exercised the option to purchase before) the Company shall forthwith handover
the said vehicle to the Dealer at Its own costs and at the office premises of
the Dealer failing which the Dealer will have the right to take possession of
the said vehicle where it is by force and if pot possible through Court and the
Company will be liable to pay all costs, charges and expenses Incurred by the
Dealer in taking such possession.
(10) If at the time of delivery or taking
possession of the said vehicle as aforesaid the vehicle is not in working
condition or has suffered damages all the costs incurred by the Dealer In
getting the vehicle repaired and brought in running condition will be payable
by the Company and the Company hereby covenants to pay the same.
(11) If the said vehicle suffers any
accident of whatsoever and by reason thereof, the vehicle goes beyond repairs
or if the vehicle is destroyed by fire or accident during the hire period or if
the vehicle is forfeited or sold by any authority in exercise of any lawful
power then the company will be liable to pay to the Dealer the said amount of
rupees ... mentioned in clause 4 above less the hire charges paid by the
Company and the moneys if any received from the insurance Company by the Dealer
and the Company covenants to pay the same forthwith on demand with interest at .....
per cent. per annum till payment.
IN
WITNESS WHEREOF THE PARTIES HAVE PUT THEIR HANDS THE DAY AND YEAR FIRST
HEREINABOVE WRITTEN.
THE
SCHEDULE ABOVE REFERRED TO
Signed
for and on behalf
of
M/s A B C and Co. by Mr .........
as
partner and duly authorised by the firm in the presence of
Signed
for and on behalf
of
X V Z Transport Co. Ltd. by Its Managing Director
duly
authorised by the Board of Directors in the presence of
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