Hi All,
I have a query with respect to the above captioned subject.My brother wishes to start a dairy farm with an initial investment of Rs 20 lakhs. All the infrastructure + equipments & cattle have been brought.The said dairy project is totally undertaken by my brother with he owning all the capital invested and he has employed one of his cousin and a servant who will act as the managing agents.The cousin brother wishes to have a share in the profits while servant will be employed to assist in the procurement and selling of the milk (non packaging form)and to get wages in return.
Since milk selling directly to the consumer can attract the provisions of the food safety act and there are chances of adulteration knowingly by any of the managing parties, I am interested in knowing what precautions he(my brother) should take from the initial stages to fix the liability for fair dealings with his cousin & the servant so that in the case of any unforeseen event of adulteration, my brother does not get penalized because of other person's fault/ill-motive/casualness with respect to his business as he will not be actively involved in this business.
Is there any precautions my brother can take in advance for protecting himself legally in this business..be it in the form of having a registered service agreement in writing with his cousin and the servant?Will that alone is enough or something more is required?
your valuable suggestions are needed!
Thanx..
Rashmi 
