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Hire Purchase Agreement

This document outlines the terms of an agreement between an owner and hirer for the hire-purchase of a motor vehicle. The hirer will pay monthly installments over 36 months to purchase the vehicle, which will remain the property of the owner until full payment is made. The responsibilities of each party are defined, including maintaining the vehicle and paying taxes for the hirer, and allowing use of the vehicle and ability to repossess for non-payment for the owner. The agreement may be terminated by either party under certain conditions and disputes will be settled in Kenyan courts under Kenyan law.

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Josphine Warui
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608 views4 pages

Hire Purchase Agreement

This document outlines the terms of an agreement between an owner and hirer for the hire-purchase of a motor vehicle. The hirer will pay monthly installments over 36 months to purchase the vehicle, which will remain the property of the owner until full payment is made. The responsibilities of each party are defined, including maintaining the vehicle and paying taxes for the hirer, and allowing use of the vehicle and ability to repossess for non-payment for the owner. The agreement may be terminated by either party under certain conditions and disputes will be settled in Kenyan courts under Kenyan law.

Uploaded by

Josphine Warui
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AGREEMENT FOR HIRE-PURCHASE OF A MOTOR VEHICLE

THIS AGREEMENT is entered into this ________ day of _____________________20___________

I. ___________________________________________________________ of National
Identification Card Number __________________________ (herein after referred to as the
Owner which expression shall where the context so admits include his/ her personal
representatives and permitted assigns) of P.O. Box _________________

AND

II. ___________________________________________________________ of National


Identification Card Number __________________________ (herein after referred to as the
Hirer which expression shall where the context so admits include his/ her personal
representatives and permitted assigns) of P.O. Box _________________

WHEREAS
I. the Owner is the legal Owner of a motor vehicle, [insert model, number plate and chassis
number, engine number, color of the car] (the Vehicle)
II. The Hirer has approached the Owner to own the Vehicle on hire purchase terms for purposes of
conducting taxi-cab business on the terms and conditions below.

The Owner and Hirer Agree as follows:

1. Hire Purchase Installments


i. The Hirer will pay the Owner equal monthly installments of Kenya Shillings Forty Thousand per
month (KES 40,000) over a period of thirty-six (36) months. Each installment shall be paid on
the 5th of every month (the Installments)
OR
The Hirer will pay the Owner a daily installment of Kenya Shillings Two Thousand per month
(KES 2,000) over a period of thirty-six (36) months. Each installment shall be paid at the close
of business of each day. (the Installments)

ii. The Installments paid by the Hirer will not be refundable if this Agreement is terminated.
2. Responsibilities of the Hirer
The Hirer shall:
iii. Not sell the vehicle or use it as collateral for any loans.
iv. Not give the Vehicle to a third party to be used for any other reason.
v. Not to use the Vehicle for personal errands and take it out of Nairobi County, unless he has
obtained a permission in writing from the Owner.
vi. Pay all licenses, expenses and other taxes which are required to operate a taxi business.
vii. Pay the necessary insurance premiums/policies for the Vehicle.
viii. Maintain the Vehicle in a good repair, condition and working order and will permit the Owner
and the Owner’s representatives to have access to the said vehicle for the purpose of inspecting
the condition thereof.
ix. Compensate the Owner and any persons injured in case of any damage to the Vehicle caused by
accidents, theft and negligence of the Hirer.
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x. Compensate any persons injured in case of any damage to the Vehicle caused by accidents, theft
and negligence of the Hirer.
xi. Not use the Vehicle for any illegal activities.
xii. Not delegate his duties or responsibilities in this agreement to a third party.

3. Responsibilities of the Owner


The Owner shall:
i. Immediately take the Vehicle, where the Hirer fails or neglects to maintain the Vehicle in a good
condition or to repair it. The vehicle will be released until the Hirer pays the bills for
repair/maintenance.
ii. Immediately take the Vehicle, where the Hirer fails to pay the Installments for 2 consecutive
months.
iii. Provide the Vehicle in a manner which is useable.
iv. Allow the Hirer to conduct the taxi-cab business without interference unless the Hirer is not
meeting their responsibilities under this agreement.
v. Have the right to enforce any of the any terms or conditions of this agreement, and no delay shall
prejudice the rights of the Owner

4. Completion of payment of Installments


i. The Owner shall transfer the Ownership of the Vehicle to the Hirer once the Installments have
been paid in full. Until all Installments have been paid, the Vehicle shall remain the property of
the Owner.
ii. Hirer shall have the option of purchasing the Vehicle at any time during the period of this
Agreement by paying in one lump sum
iii. Each party shall cater for their personal costs of transferring the vehicle.

5. Offering of services by the Hirer to the Owner


i.The Owner may approach the Hirer to offer taxi cab services for the benefit of the Owner at a
rate that will be agreed by the parties.
ii. This offer of services does not mean that the Owner has employed the Hirer as an employee, an
agent or a business partner.
iii. This offer of services does not release the Hirer from the obligation to pay the Installments and
the offering of services will not lead to an actual deduction of the Installments to be made to the
Owner.

6. Termination of the Agreement


i. Termination by the Hirer

The Hirer may at any time terminate this Agreement by returning the Vehicle at his own cost and risk to
the Owner at his place of address. Where the Vehicle is not returned the Hirer will continue to pay a
penalty of Kenya Shillings Five Thousand (KES 5,000) per day until the car is returned to the Owner.
The Hirer agrees that the Installments paid are NOT refundable by the Owner.

ii. Termination by Owner

The Owner may terminate this Agreement where the Hirer has not met its responsibilities listed in clause
2. The Owner will immediately repossess the Vehicle and has the right to resell it at market price.

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iii. Termination by agreement of the Owner and the Hirer

The Owner and Hirer may terminate this agreement by mutual agreement. In this case, the Owner shall
refund the Hirer the balance of any insurance premiums/policies and any vehicle
licenses/registration/taxes incurred in that particular year.

iv. In any of the above instances of Termination, The Owner may still demand for more
compensation where there is damage to the Vehicle which will significantly affect the resale
value of the Vehicle or where the Owner may face legal action by third parties due to the actions
of the Hirer.

7. Governing Law and Dispute Resolution.

i. All disputes, differences and/or claims, arising out of this agreement shall be settled in the courts.
This agreement is governed under the laws of Kenya.
ii. This Agreement can be amended in writing by the consent of the Owner and the Hirer

The Owner and Hirer hereby agree that this agreement has been fully explained to them and they have
understood the meaning of all the clauses of this agreement and they have signed this agreement
independently and with full understanding of what is expected of them.

If you have read, understood and accepted the terms and conditions, please sign a copy of this
Agreement.

FOR THE OWNER

Signed: _________________________ ID/Passport NO: ______________________

Date: ____________________________________

WITNESS

Signed: _________________________ ID/Passport NO: ______________________

Date: ____________________________________

FOR THE HIRER:

Signed: _________________________ ID/Passport NO: ______________________

Date: ____________________________________

WITNESS

Signed: _________________________ ID/Passport NO: ______________________

Date: ____________________________________

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