Execution of agreement in two countries
jayesh
(Querist) 29 July 2011
This query is : Resolved
We want to execute agreement with foreign party, Can we do execute agreement in the following ways;
1)We send agreement on stamp paper of Rs. 100 to foreign party for signature
2) Foreign party execute their part in the presence of notary in their coutry
3) Foreign party send back agreement to us
4) Indian party execute the agreement in presence of indian notary
Assumption:
1)Amount of stamp duty is Rs. 100
Query:
1) Is it valid execution ?
2) What is the date of execution ? date on which indian party sign it ?
3) Is it agreement in the eyes of law and can we produce before court for justice in case of breach of condition ?
Advocate Rajkumarlaxman
(Expert) 29 July 2011
Its always better to file and register the document when making internationally. notarised can work if regsitered in their books and if such clauses are added in the agreement itself. below are few paras to be included in your agreement so as to clearify the jurisdiction .
# A copy of this agreement signed by both the parties will be filed with the several authorities as required by law.
These payments and the manner of payment will be subject to the approval of the Govt. of India and the Reserve Bank of India and in the event of the said authorities making any modifications therein the same will be modified or deemed to be modified accordingly.
# If the Government of India puts any terms and conditions for approving this agreement which are not acceptable to the Foreign Company, the latter will have a right to treat this agreement and the agreement between the Foreign Company and Confirming party as cancelled.
# This agreement will remain in force for a period of... years from the date hereof subject to the other provisions hereof. The parties may extend the said period and to such extent as may be agreed upon. However, this shall be deemed to be a part of or incidental to the agreement between the Confirming Party and the Foreign Company hereinbefore recited and if this agreement is terminated by expiration of the said period or otherwise the said agreement shall also be deemed to be terminated. Notwithstanding anything contained in the said agreement and In the event of the termination of the said Agreement under this clause, the same consequences follow as would follow as if the said agreement was terminated under any of the provisions of the said agreement.
# This agreement will be treated as terminated on the happening of any of the events below mentioned :
(i) If any party hereto commits breach of any provisions of this agreement and the party who is alleged to have committed breach Is served with a notice by the other party, three months prior to the intended date of termination by the other party and the former party has failed to amend the breach within the said period.
(ii) If any event happens which will make the performance of this agreement impossible including any force majeure event.
(iii) If either the Indian Company or the Foreign Company goes into either voluntary or compulsory liquidation according to or under the law by which it is governed.
(iv) If the parties hereto mutually agree to terminate this agreement. 28. All the sanctions, approvals, permissions, licenses and other requirements of the Government of India and of any statutory authorities required for giving effect to all the terms and conditions, of this agreement shall be obtained by the Indian Company.
# In the event of any dispute or difference arising between the parties hereto or as to the rights and obligations under this agreement or as to any claim, monetary or otherwise of one party against the other or as to the Interpretation and effect of any terms and conditions of this agreement, such dispute or difference shall be referred to Arbitration of a common Arbitrator if agreed upon or to two or more Arbitrators, one to be appointed by each of the parties to this agreement and such Arbitration shall be governed by the Indian Arbitration Act, 1940. The venue for such arbitration shall be in India.
# The validity of this agreement and the effect or meaning of the terms hereof will be decided according to the Indian Law.
# Any communication by one party to the other shall be made by registered post through airmail, with acknowledgement due or by telex or fax or cable. In case the communication is made by telex or fax or cable, the same will be subsequently but immediately thereafter confirmed by written communication sent by registered post as aforesaid. Any evidence showing the communication was posted or telex, fax or cable communication was made will be sufficient to prove the posting or sending the- communication.
# In this agreement the expression 'know how’ shall include technical information such as inventories formulae processes, engineering and manufacturing skill, scientific data, calculations, specifications, drawings, standards, sketches and all other relevant Information and knowledge.
# The Indian Company will be entitled to grant a sub-license to any other person in India of the rights and benefits under this agreement on such terms and conditions agreed to between the Indian Company, the Foreign Company and the sublicensee and subject to the approval of the Government of India.
# Each of the parties hereto shall be deemed to include Its successors or permitted assigns.
Ajay Bansal
(Expert) 29 July 2011
I don't think that you have made a legal agreement.
M/s. Y-not legal services
(Expert) 29 July 2011
Its will not be treated as a valid agreement.. Better the foreign party may give power of attorney to an indian citizen. With that p.o.a the holder can be entered in to any agreement on behalf of the foreign person.
