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The Hire Purchase Agreement For Machinery is a crucial commercial document used in Canadian business transactions where companies need to acquire expensive machinery or equipment while spreading the cost over time. This agreement type is particularly relevant under Canadian law, which provides specific frameworks through provincial Personal Property Security Acts and federal commercial legislation. The document establishes a legal arrangement where the hirer gains immediate possession and use of the machinery while making regular payments, with the seller retaining title until the final payment is made. It includes essential provisions for payment terms, maintenance requirements, insurance obligations, and default remedies, all structured to comply with Canadian federal and provincial regulations. This agreement type is commonly used across various industries where significant capital equipment purchases are required, providing a balanced approach to protecting both the seller's security interest and the buyer's commercial needs.

1. Parties: Identification of the seller/owner and hirer with full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the seller's ownership of the machinery and hirer's intention to purchase through hire purchase arrangement

3. Definitions: Definitions of key terms used throughout the agreement including 'Machinery', 'Hire Purchase Price', 'Installation Date', etc.

4. Agreement to Sell and Purchase: Core terms of the hire purchase arrangement, including the seller's agreement to sell and the hirer's agreement to purchase through periodic payments

5. Description of Machinery: General description of the machinery with reference to detailed specifications in schedule

6. Price and Payment Terms: Total hire purchase price, deposit amount, number and frequency of installments, interest rate, and payment methods

7. Delivery and Installation: Terms regarding delivery timeframe, location, and basic installation requirements

8. Title and Risk: Provisions clarifying that title remains with seller until final payment while risk passes to hirer upon delivery

9. Maintenance and Use: Hirer's obligations regarding proper use, maintenance, and care of the machinery during the hire purchase term

10. Insurance: Requirements for insurance coverage of the machinery during the hire purchase term

11. Default and Termination: Consequences of payment default, rights of termination, and repossession procedures

12. Warranties and Representations: Warranties regarding the machinery's condition, fitness for purpose, and seller's authority to sell

13. General Provisions: Standard clauses including notices, entire agreement, governing law, and dispute resolution