Contract agreement and proprietorship concern

Dheeraj Kaushik (Querist) 28 April 2016 This query is : Resolved
I am proprietor of placement concern running in the name of 'MYRA group'.

I have entered into the agreement with Pvt. limited company to provide executive search service to said co. later on said co. deny to made payment. I have filed recovery suit. the said co. filed WS and claimed that contract was not concluded contract by saying that 'any contract on behalf of Proprietorship concern can only in the name of the sole proprietor as alleged agreement entered between MYRA group and said company.
Querry-

1 it is necessary to have an agreement in the name of proprietor not in the name of proprietorship concern.
2. if I entered in to agreement with the name of my proprietorship concern then in this said agreement is not valid.
2. if it is valid than suggest me some judgement also.

Follow Query

Report Abuse

SURESH BV, Advocate (Expert) 30 April 2016
Dear Dheeraj Kaushik,

The contention raised in the WS is correct. The Proprietorship concern is not a legal entity so as to enter into agreement.

Therefore, the only possible contention you should urge is the intention of the parties while entering in to an Agreement. You can also urge the Court to take into agreement so as to consider it for collateral purpose.