Draft a Specimen Agreement for Hire-Purchase between Financier and Guarantor. Assume facts.

Agreement for Hire-Purchase -- Financier with a Guarantor (Three Party Agreement) THIS AGREEMENT made this day............BETWEEN the............(hereinafter called 'the Owner') which expression............of the first part and the............(hereinafter called the 'Hirer' which expression............) of the second part and the............(hereinafter called 'the guarantor' which expression............) of the third part. WHEREAS the owner on the request of the hirer has purchased the goods described in the Schedule A hereto from the dealer in order to let the same to the hirer on the terms and conditions hereinafter appearing and the guarantor has agreed to guarantee the payment of the hire and performance of other conditions by the hirer in accordance with the terms of this agreement. WHEREBY in consideration of the above it is agreed between the parties as follows: Hire: The hirer shall pay to the owner on the execution of this agreement the sum of ₹............the hire for the first month and on the first day of every calendar month or year during the hiring the sum of ₹............by way of hire for the said goods, or shall pay the rent specified in Schedule-B hereto and payable without demand on the day therein mentioned. Option to purchase: The hirer shall at any time during the hiring have the option of purchasing the said goods for ₹............and in that event the hirer shall receive credit for all sums previously paid by him under the preceding clause. Until a purchase shall have been effected and the price fully paid the said goods shall remain the property of the owner. Hirer's covenants: During the hiring tenure the hirer will not sell, pledge, hypothecate, charge or in any manner encumber the goods or part with possession of the said goods or any of them without the consent in writing of the owner. Change in address: The hirer shall forthwith intimate the owners any change of address of the hirer and of the address of the premises where the asset is kept and shall further more forthwith notify the owner in writing of any loss or damage to the said asset. Default clause: If the hirer shall make default in the punctual payment in full, of the said monthly hire or in the observance or performance of any of the provisions of this agreement, on his part to be observed and performed the hiring shall immediately determine (specify here other conditions stipulated by the owner). Owner to make possession: On the determination of the hiring, the owner may without notice or demand retake possession of the said goods and for that purpose may by himself or by his agent or servants enter into or upon any premises occupied by the hirer and search the same if necessary for the hired goods. Option to terminate hiring: The hirer may terminate this agreement at any time by returning the said goods at the owner's place of business. Rights of damages not affected: If the hiring is terminated by the hirer under clause 8 such termination shall not prejudice the owner's right to recover the hire upon the date of such termination nor his right to recover damages for any prior breach of this agreement by the hirer, and the hirer shall not be allowed credit or set off for on account of any payments previously made by him. Compensation for depreciation: At the termination of this agreement either at the instance of the hirer or the owner, the hirer shall pay to the owner by way of compensation for depreciation of the said article such sum as ith the amount previously paid for hire shall make up a sum equal to not less than one half of total amount payable under the agreement. Any notices required to be given herein shall be given to the parties hereto in writing and by either Registered Post Acknowledgment parties due or by hand delivery at the addresses above mentioned or at such other addresses as the parties hereto may hereafter substitute by notice in writing. Consequences of breach: The guarantor further agrees that in consideration of the premises, and in case of breach of the terms of this contract by the hirer, he shall restore possession of the asset to the owner and shall pay such sums of hire of the asset as may have fallen due to the owner alongwith any other sum that may become payable to the owner. In case of any further dispute the parties to the agreement will refer the dispute to Arbitration under the Arbitration & Conciliation Act 1996. Any time or other indulgence granted by the owner shall not prejudice or affect his strict rights under this agreement. Schedule A Description of Assets Name. Accession No. Mark/Trade Name. Year of Manufacture. Type of Machine. No. of Machine. Other description: ............ Accessories affixed to the asset: ............ SCHEDULE B The amounts payable under this Agreement are as under: Due Date Amount (₹) ...... ...... IN WITNESS WHEREOF the parties hereunto have set and subscribed their hands the day, month and year hereinbefore mentioned and bind themselves their heirs, successors and administrators and assigns. With suitable change for guarantor. Witness: 1. Signature of Hirer Witness: 2. Signature of Owner Signature of Guarantor