Legaljini

Agreement for Hire Purchase of Motor Vehicle

This deed is required when a person wishes to gift someone but only on the happening of the certain event. Hire Purchase Agreement is document in which Owner agree to give and the Purchaser [Hirer] agree to take certain goods through the contract of hire with an option to purchase the said goods on making payment of certain sum of amount as down payment and balance amount to be paid by monthly/weekly installments along with interest thereon for a certain period of time fixed by and between the concerned parties, till the total amount of the said goods paid by the Purchaser.

₹ 675.00

1

What is meant by Hire Purchase?

Ans.

It is a contract for delivery of goods on hire under which the Vendee is granted an option to purchase the goods. The ingredient of hire distinguishes hire purchase agreement from the other contracts for sale or transfer.

2

Is it obligatory for the Vendee to purchase the good taken under hire purchase?

Ans.

No, under a hire purchase agreement, the Vendee has an option either to purchase the good or not. In case where the good is not purchased eventually the amount paid till the date of the return of the good shall be retained by the Vendor as the rent for the hire of the good.

3

Is hire purchase same as lease?

Ans.

No, in hire purchase upon the payment of the last installment of the amount due the Vendee becomes the rightful owner of the said good, whereas in lease upon the expiry of the term of lease lessee shall have to return the possession of the said good to the Lessor.

4

What are the major features of a hire purchase system?

Ans.

•The price of the product is paid in form of Equal Monthly Installment (EMI).
•The Vendee gets the possession of the product on the date of the purchase itself.
•The legal ownership remains with the Vendor only until the payment of the last installment.
•Upon default on payment of an installment the Vendor has a right to demand the possession of good hired without refunding the amount paid so far in lieu of the said good.

5

Is a hire purchase agreement required to be stamped?

Ans.

They are stamp-able as an ordinary agreement. Such agreements are generally in duplicate & the duplicates also need to be stamped. If the agreement is in the nature of a lease, it would attract stamp duty as on lease.

6

Is it required to register a hire purchase agreement?

Ans.

No, a hire purchase agreement is not required to be registered.

 

 

STEP 1

Fill in blanks:

Fill in the blank spaces. Delete instructions highlighted in grey.

 

 

 

STEP 2

Alternations: 

Add or delete a clause according to your needs. Re-check the document.

 

 

 

STEP 3

Stamp Paper

The Stamp Duty value will be made available to you at your legaljini account on purchase of the document.

 

Stamp Duty Payment option 1

If you wish to print Agreement on Stamp Paper, you can buy from court/ Stamp office and said Stamp paper will be used as 1st page of Agreement. If you wish to have 2 copies of Agreement you should buy 2 Stamp Papers (one Stamp Paper for each copy)

 

Stamp Duty Payment option 2

If you have facility of franking for Stamp Duty payment at nearest bank, you need to print the Agreement & get franking done. If you wish to have 2 copies of Agreement you should frank 2 copies (one copy for each party)

 

 

 

STEP 4

Printing on Legal Paper:

 

 

On Stamp Paper

Print ONLY on the blank portion of the stamp paper.

 

On Ledger Paper

Print on a SINGLE SIDE of a sheet of Ledger Paper.

 

 

 

STEP 5

Number of Copies Needed:

Generally it is made two copies (one copy for each party)

 

 

 

STEP 6

Photographs & Signatures/ Thumb Impression & Initials:

The concerned parties should sign, or affix their mark and recent passport size photograph against their names on the last page of the document. This document must initialed or marked by the concerned parties at the end of every page. In addition or corrections/ alterations made after printing must be initialed.

 

 

 

STEP 7

Witness Attestation (Both Parties):

This document must be attested by at least two witnesses from both sides.

 

 

 

STEP 8

Registration/ Notary

Registration or Notary is mandatory for some documents. If you need clarification you may contact our Helpline at support@legaljini.com

 

Notarisation Mandatory

Please notarise this document from the Notary Public at your nearest court.

 

 

 

You Need to Know:

If there is a contract of guarantee than it must be attested and signed by the Surety/Guarantor. 

 

 

 

Please contact our Helpline if you have any difficulty.