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About this template
What is this template?
This is a machinery hire agreement specifically tailored for the Indian legal context. It contains detailed insurance requirements in the owner's name and an arbitration clause citing the 1940 Act. It is not a hire-purchase agreement as it contains no provision for the hirer to eventually own the machinery.
When should you use it?
Use this when equipment is being rented for a fixed duration and must remain at a specific physical location. Use a Hire Purchase Agreement instead if the hirer intends to acquire ownership after all installments are paid.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Term of Hire | The Owner lets and the Hirer takes the machinery for a specific term of years defined in the schedule. |
| 2 | Rent and Payment | The Hirer must pay a monthly sum in Rs. on a specific day of each succeeding month without prior demand. |
| 3 | Possession and Movement | The Hirer is prohibited from selling, pledging, or removing the machinery from the installation premises without the Owner's written consent. |
| 4 | Maintenance and Inspection | The Hirer maintains the machinery in good repair at their own expense and allows the Owner access for inspection. |
| 5 | Insurance Obligations | The Hirer must insure the machinery for a specific Rs. amount in the Owner's name and produce receipts on demand. |
| 7 | Termination by Hirer | The Hirer may terminate the hiring by providing a specified number of months' notice without receiving credits for previous payments. |
| 8 | Default and Repossession | The Owner may terminate immediately and retake possession if the Hirer defaults on monthly payments or other conditions. |
| 12 | Arbitration | Disputes are referred to two nominated arbitrators and an umpire under the Indian Arbitration Act 1940. |
Who it's for
- a factory owner leasing out unused equipment after closing personal operations
- a business requiring industrial machinery for a fixed term against monthly rupee payments
- parties in India seeking a machinery lease governed by the Indian Arbitration Act
How long it runs and how it's signed
Law it's drafted under
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