koolddd (owner) 11 September 2013

Contract question

Hi,

I am an Individual making a contract with another individual.

I will be helping the person to host (its required for the website to work online), in return, I want 5000 INR/per month,plus half of the profits. The other person will run the website and handle all other operation.

Ill invest initially for the website.

My Questions

1. Can I make this contract on any piece of paper or stamp paper? and if stamp paper, then what amount?

2. Do I need to register the agreement anywhere or any witness required?

3. There is no expiry of contract, except that if the annual revenue generated is less than INR 25,000/annualy Ill own the website completely and the other person will give up all its rights.

Also, we can both choose to stop doing our obligations,but then we have to hand over the website(also domain) to the other person by giving up all the rights.

4. Any important info, I am missing?

Thanks guys!

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4 Replies

Augustine Chatterjee,New Delhi (Advocate & Solicitor at Law) 11 September 2013

Respected sir

Formulating a business contract is not as simple as you mentioned. Please dont rush into it else ull subsequently get caught up in legal issues if any dispute arises.Describe the terms of your contract to a good lawyer and then have him draft the agreement. There are many legal clauses which must be included else it would be a heavy price for you.

Also as regards to your queries regarding the stamp paper, the law does not mandate the agreement to be on any amount of stamp paper. Neither does it man date the presence of the witnessses.However it is better if you have the two witnesses you mentioned,Gives more enforcement at the time of proving the contract,if at all any dispute arises.

Advocate Augustine Chatterjee

9999931153

Ms.Nirmala P.Rao (CEO) 15 September 2013

Dear Client,

All your fair and reasonable terms and conditions of your contract so long as they are not unconcionable, illegal, immoral or opposed to public policy can be reduced in to writing and its better you get it executed on a stamp paper of s.100 or according to the value in money terms of yo9ur agreement as per a good lawyers advice.

Ms.Nirmala P.Rao

Legal Expert

Ms.Nirmala P.Rao (CEO) 15 September 2013

Dear Client,

As I can't modify A FORUM reply and in continuation of my previous reply please get your agreement executed on a stamp paper of Rs,.100 as it is legal as per Stamp Duty Act. Nothing more.

Ms.Nirmala P.Rao

Advocate Ravinder (Advocate/Attorney) 18 September 2013

Q1--You have to draft the matter on Rs.100/- NJ Stamp paper. In case you do not have stamp paper, you can draft it on white paper, but it should be compounded before the local sub registrar office later by paying Rs.100/- plus meagre misc. charges.

Q2--As this is not immovable property, you do not require any registration. Two witnesses required.

Q3--You can reduced the same contents in your agreement/MOU, but the terms should not be unlawful and illegal.

Q4--consult a lawyer as it involved lot of legal aspects.