12. The tenant keeps the aforementioned machinery and equipment, insured on behalf of the company, with a recognized insurance company and pays the premium as soon as it is due and regularly due. The insurance policy will be given to the company and the tenant will provide the company with the premium certificate or Xerox copy of the company from time to time. If the tenant does not insure these machines and facilities or pays the premium at any time, the company has the right to insure the same insurance or pay the premium (without prejudice to its other rights under this agreement), as the case may be, and the costs incurred by the business are paid by the tenant upon request to the company. Conditional selling is similar to rental sales. The contract generally provides that the goods do not belong to you until you have paid the last tranche and the lender may be able to take back the goods if you fall back with payment. Leasing (HP) is a type of loan. It differs from other types of borrowing, because you don`t own the goods until you have fully paid. As part of an HP agreement, you rent the merchandise and then pay an agreed amount in increments. While you are still making payments, you are not allowed to sell or dispose of the goods without the lender`s permission. If you do, you`re committing a crime. If you are not sure you still need something, check the original credit agreement which must indicate the total price of the merchandise and the amount you must pay when you terminate the contract. The credit agreement is the legal document you signed when you purchased the goods.

You must pay all due payments before the end of the agreement. If your payments are less than half the total price of the merchandise, you may still have some money to pay, since the lender is entitled to that amount under the agreement. If you have already paid more than half the price when you terminate the contract, you cannot be reimbursed, but you usually no longer have to pay. If you are having trouble maintaining repayments for a rental purchase or a conditional sales contract, it may be best for you to terminate the contract yourself. This limits the amount you owe. Once you are late with repayments, the lender can terminate the contract and you may end up having to pay more. 25. The tenant has the opportunity to acquire these machines and equipment, and the option is exercised by notifying the company one month in advance.

The option to purchase may be exercised from the expiry date of the agreed deadline for this contract or from an earlier date. In the first case, the tenant is required to pay the company an amount equal to the rental price of the machines and equipment referred to in the point (3), reduced by the total amount of payments up to that date or the higher rupee. In the latter case, that is, if the option to purchase is exercised before the term of the contract expires, the tenant is required to pay an amount equal to the purchase price of the rent or the balance of the rent, payable in monthly increments of the rental costs up to the date of the agreed term of the contract, since it is reduced by a discount corresponding to two thirds of an amount corresponding to the rental costs. the same share as the balance of the rental sale price that has not been due until now applies to the purchase price of the lease. 5. During the course of this agreement, the tenant of the company pays an amount of Rs. … as a rental fee, in advance, the first of these payments to be made on the execution of this agreement and any subsequent monthly payment is made on or before the … This date is as follows: Payment is made at the company`s headquarters only in cash or by cheque on behalf of the company.

(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.