HIRE-PURCHASE AGREEMENT
Updated 15 July 2026
HIRE-PURCHASE AGREEMENT
AN AGREEMENT made this ______ day of ____________, 20____, BETWEEN AB, etc. (hereinafter called "the Owner", which expression shall, unless excluded by or repugnant to the context, be deemed to mean and include his/her heirs, executors, administrators, legal representatives and assigns) of the One Part; AND CD, etc. (hereinafter called "the Hirer", which expression shall, unless excluded by or repugnant to the context, be deemed to mean and include his/her heirs, executors, administrators, legal representatives and assigns) of the Other Part.
WHEREAS it is agreed as follows:
(1) The Owner will let, and the Hirer will take on hire, the pump set fully described in the Schedule hereto annexed, for a term of ______ months from the date hereof, at a rent of Rs. ______ (______ only) to be paid by instalments in the manner hereunder stated, subject nevertheless to the termination clause hereunder contained.
(2) The Hirer has already paid to the Owner the sum of Rs. ______ (Rupees ______ only), being the first month's rent (the receipt of which sum the Owner hereby acknowledges), and the Hirer shall continue to pay instalments of such rent on the ______ day of each succeeding month during the said term, the next payment to be made on the ______ day of ____________.
(3) The Hirer shall, until and unless all instalments of rent are paid, keep and maintain the said pump set in good order and condition, and preserve it against loss or injury by theft, etc. (reasonable wear and tear being excepted), and make good all damage, accidental or otherwise, and allow the Owner, his agents or servants to inspect the same whenever demanded.
(4) In the event of the goods being damaged or destroyed beyond repair or replacement, or lost by fire, theft or any other cause, the Hirer shall nevertheless remain liable for and pay the Owner the remaining instalments due on the goods.
(5) The Hirer shall not, without the Owner's previous written consent, remove or permit removal of the said pump set from the above address of the Hirer. The Hirer shall not, until and unless he becomes the full owner, sell, assign, pledge or otherwise transfer the pump set, or subject the pump set to hire, or suffer any decree or order of any Court whereby the pump set may be attached or charged or otherwise seized or taken in execution, nor commit any act of insolvency, nor enter into any scheme or composition with his creditors.
(6) If the Hirer fails and/or neglects to carry out any of the terms of this agreement, the Owner may, without prejudice to his right to recover any arrears of rent and damages for breach of this agreement, terminate the hiring and retake possession of the said pump set, wherever the same shall be in the possession of the Hirer or of any other person; and for that purpose the Hirer hereby gives the Owner, his agents or servants all facilities to enter in or upon any premises occupied by the Hirer, to search for, seize and retake possession of the said pump set, without being liable in any way for any action for trespass or otherwise or at all.
(7) Notwithstanding anything hereinbefore contained, the Hirer may terminate this agreement at any time by surrender and return of the said pump set to the Owner, but nevertheless he shall remain liable for the balance of interest still to be paid.
(8) The Hirer may, at any time during the time of hiring, become the absolute owner of the said pump set hereby hired, by paying the Owner all arrears of rent, if any, and all rents which would become due on this agreement during the said term, without any discount or deduction, or subject to a discount of Rs. ______ (Rupees ______ only) on all payments anticipated.
(9) The Hirer shall keep the aforesaid pump set insured against fire, theft, injury and accident, in the name of the Owner or in their joint names, and regularly and punctually pay each premium as and when the same shall become due.
(10) Any time, concession or indulgence granted or shown on the part of the Owner will not prejudice his rights under this agreement.
IN WITNESS WHEREOF the parties hereto have put their signatures to this deed.
Witness: ________________________
Signature of the Owner: ________________________
Witness: ________________________
Signature of the Hirer: ________________________
About this template
What is this template?
HIRE-PURCHASE AGREEMENT is a free, ready-to-use Contract law template you can open, customize, and download on GitLaw. It gives you a professionally structured starting point, so you never have to draft from a blank page. The wording is plain and modern, organized into clear sections that are easy to read, edit, and adapt to your own situation before you share or sign it.
When should you use it?
Reach for this Contract law template whenever you need a reliable agreement quickly and want to be sure the essentials are covered. It suits individuals, freelancers, startups, and established businesses alike. Instead of paying for a document drafted from scratch, you can start here, tailor the details to your arrangement, and have a polished draft ready in minutes. This version is drafted with India in mind, though you should always review the final wording against the laws that apply to you.
What's typically included?
A well-drafted Contract law usually sets out the parties involved, the scope of the agreement, and each side's rights and responsibilities. Expect sections covering key terms and definitions, how long the agreement lasts, how it can be ended, and what happens if something goes wrong. This template brings those building blocks together in a sensible order, so you can focus on the specifics rather than worrying about what to include. Open it to read the full document, then sign up to edit, negotiate, and e-sign it directly in GitLaw.