Under Hire Purchase System The Agreement Can Be AnytimeApril 13, 2021 11:57 pm
Like leasing, leases allow companies with inefficient working capital to provide assets. It can also be tax efficient than standard credits, as payments are accounted for as expenses – although all savings are offset by possible tax benefits on depreciation. In other words, the tenant has the opportunity to acquire the asset. If the tenant chooses to terminate the contract, the tenant must either 3. The property in the merchandise remains with the seller (tenant) until the payment of the last tranche. The property is paid to the buyer (tenant) when he pays all the payments. (7) During the period of application of this agreement, the tenant maintains these machinery and equipment in good condition and maintains them properly, as a prudent man would, and replaces any lost or unused or broken parts. 4. During the performance of this contract, the tenant paid the company an amount of rs. … as a surety or serious, which are adjusted to the rental price of the machines and equipment mentioned, if the tenant exercises the option to purchase the same option as the one mentioned below.
If the tenant does not exercise this option or if the contract is terminated prior to the exercise of this option, the amount of the aforementioned down payment is returned to the tenant by the corporation after the expiry or previous provision of this agreement, subject to the deduction of the rights that the Corporation may have against the tenant under or under that agreement or law. , including the entry price of these machines and equipment. 26. With respect to the exercise of the option and the payment of the price of the machinery and equipment and other funds covered in point 25, the sale of these machines and equipment to the tenant is considered to be completed, as the option comes into effect on the effective date of the option. Until then, however, the company will remain the owner. However, if the tenant does not pay the amount owed and to pay to the company, as it is payable on the date the option takes effect, that contract is terminated and the tenant will immediately return the machinery and equipment to the company in good working condition. There is no exclusive legislation dealing with rental transactions in India. The Hire Purchase Act was passed in 1972.
In 1989, a law amended certain provisions of the act. However, the law has been enforced so far. The provisions are not incompatible with the common law and can be followed as a guideline, especially in the absence of provisions in general laws which, in the absence of a specific law, govern rental-sale transactions. The law contains provisions relating to regulations: 30. If, at the time of the decision of this agreement, the tenant does not supply these machinery and equipment to the business without litigation, the company is authorized to sue or initiate another procedure to recover the ownership of the business, and the tenant is required to bear all costs, costs and expenses incurred by the business. , subject to a decision of the Court of Justice. 22. The tenant also has the right to terminate this contract at any time by asking the company to pay no less than fourteen days in advance with this period, but in this case, the tenant is required to pay the company the sums earned for the rental fees and the amount of the rental costs to be paid for the period from the date of termination to the agreed period of that agreement. compensation for the damage suffered by the company, subject to the provisions of S.