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HIRE PURCHASE AGREEMENT



This Hire Purchase Agreement ("Agreement") is entered into on [Date] (the "Effective Date").



PARTIES



Owner: [Company Name/Individual Name]

Business Registration: [Registration Number] (if applicable)

Address: [Street Address], [City], [State/Province], [Postal Code], [Country]

Phone: [Phone Number] | Email: [Email]

(hereinafter referred to as "Owner")



Hirer: [Full Name]

ID/Passport Number: [ID Number]

Address: [Street Address], [City], [State/Province], [Postal Code], [Country]

Phone: [Phone Number] | Email: [Email]

Employer: [Employer Name] | Monthly Income: $[Amount]

(hereinafter referred to as "Hirer")



Guarantor (if applicable): [Guarantor Name]

Address: [Guarantor Address]



ARTICLE 1: GOODS

1.1 The Owner agrees to let and the Hirer agrees to hire the following goods (the "Goods"):



Type: [Vehicle/Equipment/Machinery/Other]



Description: [Detailed description of goods]



Make/Brand: [Brand] | Model: [Model] | Year: [Year]



Serial/VIN Number: [Serial Number]



Engine Number: [Engine Number] (if applicable)



Color: [Color] | Condition: [New/Used]



1.2 Included Accessories and Equipment:

  • [List all included items]



1.3 Current Condition: The Hirer acknowledges receiving the Goods in [satisfactory/specified] condition and accepts them as suitable for the intended purpose.



ARTICLE 2: HIRE PURCHASE PRICE

2.1 Cash Price: $[Amount] ([Amount in Words] Dollars)



2.2 Down Payment: $[Amount] paid on [Date]



2.3 Amount Financed: $[Amount]



2.4 Interest Rate: [Rate]% per annum [fixed/variable]



2.5 Total Interest Charge: $[Amount]



2.6 Total Hire Purchase Price: $[Amount] (Amount Financed + Interest)



2.7 APR (Annual Percentage Rate): [Rate]%



ARTICLE 3: PAYMENT TERMS

3.1 Number of Installments: [Number] monthly payments



3.2 Installment Amount: $[Amount] per month



3.3 First Payment Due: [Date]



3.4 Payment Due Date: [Day] of each month



3.5 Final Payment Due: [Date]



3.6 Payment Method:

  • [Direct debit/Bank transfer/Check/Cash]
  • Account/Payment Details: [Details]



3.7 Grace Period: [Number] days after the due date without penalty



3.8 Late Payment Fee: $[Amount] or [%] of the overdue amount, whichever is greater



3.9 Default Interest: [Rate]% per annum on overdue amounts



ARTICLE 4: EARLY SETTLEMENT

4.1 The Hirer may pay off the entire balance at any time by giving [Number] days' written notice to the Owner.



4.2 Early Settlement Rebate: Upon early settlement, the Hirer shall be entitled to a rebate of [percentage/calculated amount] of the unearned interest charges.



4.3 Early Settlement Fee: [$ Amount/None] (if applicable)



ARTICLE 5: OWNERSHIP AND TITLE

5.1 The Goods remain the property of the Owner until:

  • All installment payments have been made in full
  • All other obligations under this Agreement are fulfilled
  • The Hirer exercises the option to purchase



5.2 Upon full payment, the Owner shall transfer title to the Hirer and provide all necessary documentation for transfer of ownership.



5.3 Transfer Costs: [Owner/Hirer/Shared] shall bear the costs of transferring title.



5.4 The Hirer shall not sell, transfer, pledge, or encumber the Goods without the Owner's prior written consent.



ARTICLE 6: HIRER'S OBLIGATIONS

6.1 Payment: The Hirer shall make all payments punctually on the due dates.



6.2 Maintenance and Care: The Hirer shall:

  • Keep the Goods in good condition and working order
  • Perform regular maintenance and servicing
  • Make necessary repairs promptly
  • Use the Goods only for lawful purposes
  • Not modify or alter the Goods without written consent



6.3 Insurance: The Hirer shall:

  • Obtain and maintain comprehensive insurance covering [fire, theft, accident, liability]
  • Name the Owner as loss payee or first beneficiary
  • Provide proof of insurance to the Owner
  • Pay all insurance premiums promptly
  • Notify the Owner of any insurance claims



6.4 Location: The Hirer shall keep the Goods at [Address] and notify the Owner of any change of location.



6.5 Inspection: The Hirer shall allow the Owner to inspect the Goods at reasonable times upon [24/48] hours' notice.



6.6 Notification: The Hirer shall immediately notify the Owner of:

  • Any damage to or loss of the Goods
  • Any claim by third parties against the Goods
  • Change of address or contact information
  • Any circumstance affecting ability to pay



ARTICLE 7: OWNER'S OBLIGATIONS

7.1 The Owner warrants that:

  • The Owner has good title to the Goods
  • The Goods are free from encumbrances
  • The Hirer's quiet possession will not be disturbed



7.2 The Owner shall transfer title upon full payment and compliance with all terms.



ARTICLE 8: DEFAULT AND REPOSSESSION

8.1 Events of Default: The Hirer shall be in default if:

  • The Hirer fails to pay [number] consecutive installments
  • The Hirer breaches any material term of this Agreement
  • The Hirer becomes bankrupt or insolvent
  • The Goods are seized, damaged, or lost
  • The Hirer attempts to sell or encumber the Goods
  • Insurance lapses or is cancelled



8.2 Notice of Default: The Owner shall provide written notice of default, allowing the Hirer [Number] days to cure the default.



8.3 Right to Repossess: If the default is not cured, the Owner may:

  • Terminate this Agreement immediately
  • Repossess the Goods without court order (where legally permitted)
  • Retain all payments made as liquidated damages
  • Claim additional damages for breach



8.4 Two-Thirds Rule: If the Hirer has paid two-thirds or more of the total hire purchase price, the Owner [must/must not] obtain a court order before repossessing the Goods (as required by local law).



8.5 Repossession Costs: The Hirer shall be liable for all reasonable costs of repossession, storage, and resale.



ARTICLE 9: RIGHT TO REDEEM

9.1 Redemption Period: The Hirer may redeem the Goods within [Number] days of repossession by paying:

  • All overdue installments
  • Late payment fees and default interest
  • Repossession costs
  • Any other amounts due under this Agreement



9.2 Upon redemption, the Agreement shall be reinstated and continue in full force.



ARTICLE 10: TERMINATION BY HIRER

10.1 Voluntary Termination: The Hirer may terminate this Agreement at any time by:

  • Giving written notice to the Owner
  • Returning the Goods in good condition
  • Paying all amounts due up to the date of termination



10.2 Settlement Amount: Upon voluntary termination:

  • If less than 50% paid: The Hirer pays up to 50% of the total price
  • If 50% or more paid: No additional payment required
  • Plus compensation for any damage beyond normal wear and tear



10.3 Refund: The Owner shall refund any amount paid in excess of the settlement amount within [Number] days.



ARTICLE 11: WARRANTIES AND CONDITION

11.1 Condition of Goods: The Goods are [sold with warranty/sold as-is].



11.2 Warranty Period: [Duration/None] from the date of delivery.



11.3 Manufacturer's Warranty: Any manufacturer's warranty is [transferred to Hirer/remains with Owner/not applicable].



11.4 Risk of Loss: Risk of loss or damage to the Goods passes to the Hirer upon delivery.



ARTICLE 12: GENERAL PROVISIONS

12.1 Governing Law: This Agreement shall be governed by the laws of [State/Province/Country].



12.2 Entire Agreement: This Agreement constitutes the entire understanding between the Parties.



12.3 Amendments: This Agreement may only be amended in writing signed by both Parties.



12.4 Severability: If any provision is found invalid, the remaining provisions remain in effect.



12.5 Assignment: The Hirer may not assign this Agreement. The Owner may assign its rights to a financing company or successor.



12.6 Notices: All notices shall be in writing and sent to the addresses listed above.



12.7 Consumer Protection: This Agreement is subject to all applicable consumer protection laws and regulations.





IMPORTANT NOTICE TO HIRER:

1. Do not sign this Agreement before you read it.

2. You are entitled to a copy of this Agreement.

3. The Goods do not become your property until you have made all payments.

4. If you fail to make payments, the Goods may be repossessed.





The Parties have read and understood this Agreement and agree to be bound by its terms.





OWNER:



Signature: _________________________________

Name: _____________________________________

Title: _____________________________________

Date: ______________________________________





HIRER:



Signature: _________________________________

Name: _____________________________________

Date: ______________________________________





GUARANTOR (if applicable):



Signature: _________________________________

Name: _____________________________________

Date: ______________________________________