sharing agreement
Querist :
Anonymous
(Querist) 19 October 2010
This query is : Resolved
Sharing agreement (between the landlord and the developer agreeing to share certain flats or floors in the said complex or any percentage of built up area agreeing to share amongst them)that is executed along with the joint development agreement for construction of any complex do require registration? Is it mandatory that this sharing agreement to be registered before the sub-registrar. else what is the proceedure to validate the sharing agreement.
Querist :
Anonymous
(Querist) 19 October 2010
i do not know
pawan sharma
(Expert) 19 October 2010
it is contract b/w the partis, for the safe hand and to avoid any dispute parties should be registerd the said Agreement, but it is not mandatory in law.
aman kumar
(Expert) 19 October 2010
As per Contract Act, an agreement enforceable by law is a contract. [section 2(h)]. Hence, we have to understand first what is ‘agreement’.
Every promise and every set of promises, forming the consideration for each other, is an agreement. [section 2(e)]. - - A person makes a proposal (offer). When it is accepted by other, it becomes a promise. However, promise cannot be one sided. Only a mutual promise forming consideration for each other is ‘agreement’. - - For example, A agrees to pay Rs 100 to B and B agrees to give him a book which is priced at Rs 100. This is set of promises which form consideration for each other. However, if A agrees to pay Rs 100 to B, but B does not promise anything, it is not ‘set of promises forming consideration for each other’ and hence not an agreement.
It should be noted that the term ‘agreement’ as defined in Contract Act requires mutual consideration. - - Thus, if A invites B to dinner and B agrees to come, it is not an ‘agreement’ as defined in Contract Act.
MEANING OF ‘PROPOSAL’ - When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. [section 2(a)].- - Thus, a ‘proposal’ can be to do a positive act or abstinence from act (i.e. negative act). [English Act uses the word ‘offer’, while Indian Contract Act uses the word ‘proposal’. Generally, both words are used inter-changeably. This is not technically correct, as the word ‘offer’ is not used in Contract Act].
MEANING OF ‘PROMISE’ - When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A pro posal, when accepted, becomes a promise. [section 2(b)]. - - Thus, when a proposal (offer) is accepted, it becomes a ‘promise’. As is clear from the definition, only person to whom proposal is made can signify his assent. Other person cannot accept a proposal.
PROMISOR AND PROMISEE - The person making the proposal is called the “promisor”, and the person accepting the proposal is called the “promisee”. [section 2(c)].
RECIPROCAL PROMISES - Promises which form the consideration or part of the consideration for each other are called reciprocal promises. [section 2(f)].
Devajyoti Barman
(Expert) 19 October 2010
From where do you hail? In West Bengal this sort of joint development agreement does not require registration and very much valid and enforceable. Hence the Development Agreement needs to be drafted with an expert on this field so that the interest of the both the parties could be protected.
Khaleel Ahmed Mohammed
(Expert) 25 October 2010
Mr. Aman Kumar not only advised the query but he explained very much the contract law.
