- Don?t steal your policies from someone else’s business. You may be liable for a copyright violation. You may also be stealing something that has no practical application to your business.
- Don?t write it yourself unless you know what you are doing. If you hire an expert to write it for you, make sure the expert has actual expertise in writing policies for your industry or something closely analogous.
Let us first understand what does a contract mean? A contract is written agreement, concerning vital fields like employment, sales, or tenancy, that is intended to be enforceable by law. We believe that the value of contract is not realised when things are hunky-dory, but the moment things go bad it is the contract that protects your interests. Hence it is important to draft a Contract/Agreement professionally so that it protects the interests of all the parties concerned. To draft a legally valid contract which protects the interests of all parties we need to first understand what are the essential elements of a Valid Contract.
- Offer and Acceptance.??In order to create a valid contract, there must be a ‘lawful offer’ by one party and ‘lawful acceptance’ of the same by the other party. Any contract has to have an offer from one party which has to be accepted by other party? ? ? ? ? ? ?2. Intention to Create Legal Relationship.??This is stated in the definition of the contract. If the parties do not wish to create a Legal Relationship, there is no necessity of a contract and hence, it is not considered as a contract at all.? ?Case :- Balfour vs. Balfour(1919)? ? ? ? ? ? ?3.Lawful Consideration.?Consideration is something which is paid by the offering party to the offered party. It may be time, money, knowledge, service etc. Without a Lawful consideration one cannot fight a case in the court. ? ? ? ? ? ? ?4. Capacity of parties.?The parties to an agreement must be competent to contract. If either of the parties does not have the capacity to contract, the contract is not valid. According the following persons are incompetent to contract. (a) Miners, ? ? ? ? ? ? ? ? (b) Persons of unsound mind, and (c) persons disqualified by law to which they are subject. ? ? ? ? ? ? ?5. Free Consent.?’Consent’ means the parties must have agreed upon the same thing in the same sense.
- Undue influence
- Lawful Object. Object has nothing to do with consideration. It means the purpose or design of the contract. Thus, when one hires a house for use as an office for an e-Commerce company, the object of the contract is to run an e-Commerce Company.
Are you buying your sweet home from a builder? This might be your most cherished dream. But hold on? Don?t you think it is high time that you need to check the property documents with due diligence. With Campa-Cola Compound demolition in Worli, Mumbai ? 2013 still fresh in the mind it would be smart to know the verifications that you need to do to avoid the unfortunate fate of 140 families in Campa-Cola Compound in Worli. So let us be sure on the property that you are willing to buy. How do you prove that you are Indian citizen? How do you prove that you are working in a company? Through relevant documents like and Election Photo Identification Card (EPIC) and Offer Letters. Likewise, we do need to check those property documents so as to not lose sleep over any issues later. Let us now look at the documents that are to be examined before you put ink on that dotted line to buy your dream property. Land Record:?Title deed is the most important document as it gives details about ownership, rights, obligations and mortgages on the property. So it validates whether the land where the project is coming up has been registered and development?rights?transferred. Get a copy of it from the builder and cross-check the information with the land record office. Construction Clearances:?A ‘certificate of commencement’ is mandatory to commence any construction of a property. The certificate is issued by the town planning and engineering department post the inspection of the basic foundation for a superstructure and building boundaries. This also means that the builder would have obtained the required licenses, sanctions and permissions for the map that are required before you can even start excavating. Approved Planning:?It is good to run an additional check and verify that the building plan and layout plan has been approved and no byelaw applicable in the area has been broken. Make sure that the floor where you have booked your?flat?has been approved in the building plan. The layout should be in accordance with the?National Building Code of India?(NBC). NBC is a comprehensive guideline, a code, for regulating the building construction activities across the country. Get this document verified with the local municipal authorities. Also, some projects claim a ‘green status’. In that case it should be either certified by the Indian Green Building Council or be rated by Green Buildings Rating System India (GRIHA), a TERI University initiative. The focus areas of all such certification for a building are energy, water and waste management. There are a couple of other rating systems also available right now in India, but?GRIHA?is the most popular and has standardized norms. Land Use Certificate:?It is illegal to have residential properties on a commercial or industrial zone. Apply to the urban development authority and check the certificate to ensure that the property you plan to purchase is in the residential zone. Sometimes the land will be in what is called a ‘converted zone’. Cities are expanding and often agricultural land is converted for non-residential usage by paying a fee to the government. In such a case, check for the endorsement order given by the tehsildar or deputy commissioner of the zone that licenses residential construction on that land. Master Plan of the Area:?Often?builders?claim future infrastructural development of the area such as upcoming metro or highway near the project. Don’t believe everything blindly. Look at the area’s master planning to verify. These plans are easily available with the town planning department. No Objection Certificates (NOCs):?The builder should also be able to give you a copy of the urban land ceiling NOC (if applicable), an environment clearance NOC as well as NOCs from the electricity, water and lift authorities, if there is one. Apart from the threat of a legal battle, you also compromise on safety. ?Illegal construction continues to mushroom in unplanned areas of our cities to accommodate the growing population. There is no homogeneity in terms of plot sizes, street widths, height, and gross built area in these locations. Old buildings that collapse are ones that have been built without proper permits and lack structural safety standards,? said Sachin Sandhir, managing director, RICS South Asia, a self-regulatory professional body dealing in land, property and construction. You must remember that if the government decides to evict you from your house, which is proven to be illegal, you have no choice but to vacate. Living in the anticipation that the house will eventually get approved is like betting in a casino.
This post will stress the importance of having this conversation (or more likely, conversations) early on, explain why a founders? agreement is a valuable tool to maintain a healthy co-founder relationship, and highlight some of the key topics to cover. 1. Roles and responsibilities.? You are going to want to make sure you have a clear understanding around roles and responsibilities up front. Yes, it is critical that a co-founding team collaborate and to create an open and shared culture amongst themselves but that shouldn?t necessarily mean everyone is in charge of everything. I have seen too many startups make the mistake of thinking that every decision has to be made collectively and every founder has control over every decision. That will inevitably create confusion and frustration.? I?m not saying you shouldn?t create an environment in which major decisions are discussed and driven be a consensus. What I?m saying that you should strive to establish some clear lines of primary responsibility and enable a functional management system that enables each of the co-founders to have clear responsibilities and reporting obligations. Doing so will go a long way in helping you minimize growing pains. Remember, not every co-founder should be a co-CEO. 2. Equity ownership and vesting.? You?ll need to allocate the ownership of your new enterprise amongst the founding team. While this is a subjective matter and can sometimes be very delicate, it is imperative that you nail down how you will split up the equity between the founding team upfront to make sure there are no misunderstandings or hurt feelings once things get off the ground.? Remember that you typically will have 90 percent to play with, as you most likely want to set aside at least a 10 percent option pool for future rank and file hires. Also remember there is no rule that says all of the co-founders will have equal ownership of the new enterprise — and that?s where it gets a little tough. You may have to tell your co-founders they are not your co-equal. But it?s always better to have that conversation on day one and not to move forward with a new enterprise and then get stuck on who owns what.? Also, to stay on the theme of planning ahead, you need to implement market vesting terms for all of the founders? equity (in case there is a split). ?What that means is that each of the founders must earn their equity by contributing to building value in the enterprise. The most common vesting terms are those that occur monthly or quarterly over three or four years. You do have some room to play with the parameters of the founders? vesting schedule, including the amounts that are fully vested up front but you should stay within market parameters.? Remember that you?re not doing this just because investors expect it. You are doing it because you will create very significant enterprise risk if one of the members of the founding team picks up and leaves for the beach and you are forced to use dilutive equity to bring on replacement talent, not to mention you don?t want to create any incentives for a free ride. So, be smart. Get the equity ownership conversation nailed early and implement appropriate vesting terms up front. 3. IP assignment.? When you and your co-founders begin to iterate on an idea and develop a business plan or begin to build a product or a platform, you are creating intellectual property (IP). IP comes in many forms but make sure that whatever IP is being developed for your new enterprise belongs to the entity and not the individuals behind the development of the IP. This concept extends to not only your co-founders but all of your employees, consultants and contractors.? Unfortunately, I have seen too many founders work, iterate and develop an idea or a technology but separate before the IP that has been developed has been assigned from them into the entity, meaning your new enterprise may not have rights to various things that it will need to evolve its business or otherwise raise capital.? Getting IP assigned into the entity is simple and there are many forms available online that get this basic assignment accomplished. Do it on day one and don?t wait too long. Co-founding a business isn?t too dissimilar from marriage. You can start with all the right intentions and never imagine separating. But it does happen. Plan ahead. Otherwise, you will jeopardize the viability of your new enterprise. To draft a co-founder agreement, visit www.wazzeer.com
Advantages of a Limited Liability Partnership
- As Many Owners As Needed One of the greatest things of a limited liability partnership is that there is no limit on the amount of owners that can be involved with the business. This is great because it evenly spreads out the amount of liability that each partner can have if something where to go wrong with the business.
- Much Less Liability Just as the name suggests, limited liability partnerships limit your liability. Since there are multiple owners involved in the business all of the risks of the business are spread out and made much smaller than if a single person was responsible for the business on their own. This generally refers to legal issues, like if the company was sued for any reason.
- Tax Benefits Another one of the great benefits of operating underneath an LLP is how you file taxes. The partnership itself doesn?t have to file taxes as a business, which provides great breaks for the company. However, each individual partner must file a variety of different tax forms regarding the business.
- Great Flexibility Flexibility is a defining characteristic of limited liability partnerships. Each partner in the business has the ability to decide how much they want to contribute and how much of a partner they truly want to be in the business. They are also not obligated to participate in business meetings or consultations with anyone that they do not feel the need to.
Liability ProtectionIn general partnerships, each participant is personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. One advantage of a limited liability partnership is the liability protection it affords. This type of partnership structure protects individual partners ?from personal liability for negligent acts of other partners or employees not under their direct control,? states the SBA. In addition, individual partners are not personally responsible for company debts or other obligations. This is advantageous for an individual partner when potential lawsuits or claims of negligence against the business are concerned.
Tax AdvantagesIndividuals in a partnership are normally liable for filing personal income taxes, self-employment taxes and estimated taxes for themselves, according to the Internal Revenue Service. The partnership itself is not responsible for paying taxes. The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company. This can be beneficial for partners who have a limited interest in the company or special tax requirements due to their interests in other businesses.
FlexibilityLimited liability partnerships offer participants flexibility in business ownership. Partners have the authority to decide how they will individually contribute to business operations. Managerial duties can be divided equally or separated based on the experience of each partner. In addition, partners who have a financial interest in the company can elect to not have any authority over business decisions but still maintain ownership rights based on their percentage interest in the company. Flexibility in business operations can become a disadvantage when partners make decisions based on personal interests and not the interest of the partnership as a whole.
Disadvantages of a Limited Liability Partnership
- Not All States Are On Board Due to the tax benefits and tricky workings of an LLP, some states do no allow them to form or operate in their region. Another big problem is that many states do not recognize LLP?s as a legal business.
- Additional Taxes Just like some states do not recognize, the majority of the rest pose large tax limits on limited liability partnerships. These taxes can come in as additional taxes when registering as well as issues with personal tax filing.
- Less Business Credibility Another huge problem with limited liability partnerships is the fact that other business and many consumers or clients do not see them as a credible business. Corporations gain much more respect and are generally more successful than LLPs.
- ? ? ? ?The person who is responsible for handling taxes can be held personally responsible for any unpaid taxes from the business.
- ? ??Each partner has a ?duty of care? position in the business. If something where to happen in their area, they are held personally and legally responsible.
- In order to set up an LLP each partner must set up a limited liability partnership agreement and register it in their state.
- ? ??In Canada only lawyers and accountants are permitted to operate underneath a limited liability partnership.
- ? ?The first LLP in Japan was permitted in 2006.
- ?? The United States is the only country to allow each state to determine their own laws on the forming of LLPs
Rent agreement?is an important document which defines the legally binding relationship between the?tenant?and thelandlord. Usually, a broker is involved in carrying out the initial transaction between the two parties. However, both the parties can also take help of a lawyer to draw the rental agreement. A rental agreement is a legal document which lays down the conditions on which relationship between the landlord and the tenant is determined. Seeking a home for rent and settling down on one may turn out to be a matter of contention on many grounds. The tenant may not pay up the rent on time or there may be disputes with the land lord on numerous matters.?Rent agreement details?would determine how disputes are to be handled and how both parties would carry out their respective duties. Here are few facts that you should keep in mind to make the agreement legally binding and valid. Always insist on presence of two non-beneficiaries while the rental agreement is being signed between the two parties. The rent agreement ought to be signed by the two non-beneficiaries to make it a valid one. You can?register the rental agreement by paying a stamp duty. Registering the rental agreement would mean that it would have more power invested in it, rather than being just a valid document. In order to make it a smart rent document, it should contain the duties and responsibilities of all the parties concerned. A smart rent agreement would also include names of all the people living in the building. If the agreement contains names of everybody living under the same accommodation, then it lays down the ground for the usage of common property?among all the tenants. The agreement should contain the tenure of tenancy. Specific dates from which date to which the lease of the agreement would be valid have to be mentioned. The rental amount has to be clearly mentioned in the document, along with the amount deposited in the account. The agreement must contain details related to terms of deduction and return of the deposit money. The agreement should also include due date of payment of rent and the grace period. It also should contain the mode of payments ? through cash or cheque or draft. The agreement should detail the procedure for rent escalation every month ? for example, many owners raise the rent by 5% every year. It is the duty of every tenant to keep the rented place clean and undamaged. Hence, maintenance and repairing responsibilities should be mentioned in the rent agreement. Alongside the rent value, maintenance fee payable every month and the payment date should also be in the agreement. While minor repairments are to be handled by the tenant, major repairments are taken care of by the land owner. The?landlord?may have some restrictions regarding movement, parking usage or may have particular usage of property resources. These decorum details are to be recorded in the rent agreement so that there arises no disputes between the parties. Some rented properties may require certain society rules to be adhered by the tenant or some land lord may not allow certain activities on his/her compound. All these should be in a documented form. Every tenancy agreement should contain details as to how to renew the agreement. The terms and procedure of renewal of the rent agreement as well as the notice period the tenant would have to serve before leaving the rented home have to be recorded in the rent agreement. The rental agreement?s rules and conditions lay invalid if any or both the parties do not adhere by them. Hence, it is of extreme importance that the agreement contains notice period. Important sections to cover in rental agreements Rental agreements need to be written in a stamp paper and signed by tenant and landlords. Here are some common agreements or conditions that need to be included in an agreement for keeping property in good condition and make prompt pay of monthly rents.
- List of things: List of things is facilities or appliance provided by a landlord to tenants along with property for rent. Things include appliances like number of fan, geyser, light fittings and so on. These things cannot be taken with them by tenant when leaving property.
- Due date: The date for paying each month?s rent and the date when it is considered as late payment. If there is any charge for late payment and time to take action when continues default.
- Right to enter: The date or time from which?propertyis let to rent. Tenant need to inform prior to landlord from when he starts using the property or building.
- Garbage: Need to specify orally or in written where to keep garbage for collection by garbage collector and how to dispose garbage. The improper dispose of garbage creates problem for fellow tenants and for it become health problem
- Policies: Policies regarding parking vehicle and whether pets are allowed in the premises or not. These have to be clearly mentioned in rental agreement than become problem in future.
- Notice period: Tenant should give at least one month notice prior to leaving and demanding for deposit. Landlord must ask a reasonable time for giving back deposit.
- Restoration: Conditions which need to restore the dwelling place or building. It includes repairs and paintings, plumbing if required and so on.
What is a Legal Notice?Legal Notice is a document that puts allegations on the defendant (Receiver of Notice) contained within the complaint. In simple words, Legal Notice is an intimation given to the defendant by the complainant about the complaints on defendant.
What is our next step?The Legal notice must contain the complete details (Full Name and Postal Address) of the complainant. Check the details and ascertain who the complainant is. This is important in case of an out of court settlement or if the notice is due to some confusion from the complainant?s end. Then check what are the allegations levelled against you (defendant). Then you can dcide on the course of action you need to take. It is very important for you to understand the charges levelled against you. If you did not understand any term in the notice you need to make all the efforts to understand it including and not limited to consulting a trustworthy lawyer.
Is reply to a Legal Notice necessary?No. Replying to a legal notice is not a requirement under law. Courts won?t pass an ex parte decree (A decree passed against the defendant in absentia) automatically for not replying to a legal notice. The importance of a legal notice?would end as soon as the Court proceeding starts. Only when you don’t appear in a case despite?serving summons on you, shall the Court passes an ex parte order/decree.
Why should I reply to a Legal Notice then?Though replying to a Legal notice is not required under law, it is generally welcomed by courts. If you decide not to reply to a Legal notice, then this (the act of not replying to the notice) may be held against you in the court. They (Complainant) may state that you, not replying to the legal notice is the root cause of this case. This will result in you facing the wrath of the court even if you are not responsible for any of the complaints contained in the legal notice. So it is always advisable to send a reply to the legal notice.
How should you send a reply to the Legal Notice?You need to be extremely careful in accepting/denying the allegation made in the legal notice. It completely depends upon your anticipation of future proceedings based upon undebatable evidences. The reply has to be sent within the time stipulated in the legal notice sent by the other party. If there is any delay in sending the reply the reasons for the same may be stated in the reply itself to avoid any misconceptions in complainant?s mind. It is very much advisable to send a reply to the legal notice through a registered advocate or take help from legal expert before deciding to reply to it on your own. A reply to the legal notice is a kind of undertaking by the defendant. If the reply is drafted poorly then it may be held against you in the court proceedings.
Shall I use a readily available template on the internet to reply?Beware of many Templates that are available on Internet. Many Do-it-Yourself prescriptions have been spread across the internet to send a reply to a Legal Notice. But always remember that the facts of each case is different and you may not find a template that is most suitable for your case. Also, they can be useful if you have minimum knowledge on Legal procedures and terminologies. Otherwise sending a reply using such templates may very well backfire. Hence, a consultation with a trustworthy Lawyer is required. Only such a lawyer can give you proper advice on whether or not to reply to the Legal notice you have received and if at all you need to reply, how you can properly frame your reply such that it serves your purpose in the court of law. For a trustworthy Professional advice on this matter Contact us at www.wazzeer.com
Majorly, there are 5?types of companies that can be registered while starting up a new business:
- Sole Proprietorship
- Partnership Firm
- One Person Company
- Limited Liability Partnership
- Private Limited Company
- Sales Tax registration
- Service Tax registration
- Sales Tax registration
- Service Tax registration
- Obtaining Digital Signature Certificate
- Preparing and submitting INC-29
- One Person Company ? /-
- Limited Liability Partnership ? /-
- Private Limited Company ? /-
- Director Identification Number (DIN)
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Affidavit and declaration by first Subscribers and Directors.
- Proof for?Registered Office Address. ? Rental Agreement / Sale Deed.
- Copies of utility bill of the registered office address that are not older than 2 months.
- If the proposed company name is a filed or registered trademark, then NOC from the trademark applicant or owner must be attached