Agreement for Hire of Machinery (India) by OLL
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Agreement for Hire of Machinery
An Agreement made the .............. day of ..................., 2000,
between
a son of B
resident of ......................................
(hereinafter called the "Owner") of the ONE PART
And
C son of D resident of ........... (hereinafter called the "Hirer") of the OTHER PART.
Whereas the owner is the owner of the machinery and is not being used by him, as he has closed his factory due to his personal reasons;
and Whereas on the request of the hirer, the owner has agreed to hire give the said machinery on hire to the hirer on the terms and conditions machinery hereinafter appearing.
Now These Presents Witness as Follows:
1. The owner shall let and the hirer shall take on hire the machinery, specified in the Schedule hereunder written (hereinafter referred to as the said machinery) from ............... for a term of ............. years.
2. The hirer shall, during the continuance of this agreement, pay to the owner without previous demand by way of rent for the hire of the said machinery the monthly sum of Rs................ for the use and possession of the said machinery, the first payment to be made an the ............ day of ............ 19 ........ next and each subsequent payment on the ............... day of each succeeding month during the said term.
3. The hirer will not sell, assign, mortgage, pledge, underlet or otherwise deal with the said machinery but will keep the said machinery in his own possession and will not remove the said machinery from the premises where such machinery is for the time being installed without the previous consent in writing of the owner.
4. The hirer shall use the said machinery in a skilful and proper manner and shall at his own expenses keep the said machinery in good and substantial repair and condition (reasonable wear and tear excepted) and will allow the owner, his servants or agents at all reasonable times to have access to the said machinery and to inspect the state and condition thereof.
5. The hirer shall keep the said machinery insured in the sum of Rs ................ against fire and loss, damage or risk from whatever cause arising with some insurance company in the name of the owner and deliver the policy of such insurance to the owner and duly and punctually pay all premium necessary for effecting and keeping such insurance in force and produce the receipt for all such payments to the owner on demand and will keep the owner indemnified against all loss or damage to the said machinery from whatever cause the same may arise.
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This is a legal template for the hire of machinery between an owner and a hirer, commonly used when industrial equipment is rented for a specific term. It outlines responsibilities for monthly rent payments, maintenance, insurance, and the prevention of unauthorized relocation or sale of the equipment. The document also includes provisions for dispute resolution through arbitration and terms for termination by either party.
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About this template
What is this template?
This is a bailment-style hire agreement for machinery where ownership stays with the lessor and the lessee pays monthly rent. It is not a hire-purchase agreement because it contains no clause allowing the hirer to eventually purchase the equipment. It includes specific Indian statutory references and formal witness blocks for execution.
When should you use it?
Use this when you want to lease out industrial equipment for a fixed term and require the hirer to handle all maintenance and insurance costs. If the goal is for the hirer to eventually own the machinery after all payments, use a Hire Purchase Agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Term of Hire | Defines the fixed duration of the machinery rental in years starting from a specific date. |
| 2 | Rent and Payment | Obliges the Hirer to pay a monthly sum in Rupees without prior demand from the Owner. |
| 3 | Possession and Location | Prohibits the Hirer from removing the machinery from the installation premises or pledging it as security without written consent. |
| 4 | Maintenance and Inspection | Requires the Hirer to maintain machinery at their own expense and grant the Owner access for periodic inspections. |
| 5 | Insurance | Compels the Hirer to insure the machinery against fire and loss in the Owner's name for a specified Rupee amount. |
| 7 | Termination by Hirer | Allows the Hirer to end the contract at any time by providing a specific number of months' notice. |
| 8 | Repossession on Default | Grants the Owner the right to enter premises and retake machinery without notice if monthly payments are missed. |
| 12 | Arbitration | Requires disputes to be settled by two nominated arbitrators and an umpire under the Indian Arbitration Act 1940. |
Who it's for
- an owner of industrial machinery whose factory is closed seeking to generate income through equipment hire
- an Indian business needing to lease specific machinery for a multi-year term
- parties requiring a machinery lease that incorporates Indian Arbitration Act 1940 procedures
How long it runs and how it's signed
Law it's drafted under
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