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Business |
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E-commerce |
Real estate |
IPR |
Human Resource |
Family & Personal |
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Letter of Intent | |||
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Board Resolution | |||
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Gift Deed | |||
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Will Deed | |||
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Appointment Letter | |||
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Non-Disclosure Agreement (NDA) | |||
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Full and Final | |||
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Commercial Lease Deed | |||
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Residential Lease Deed | |||
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Eviction Notice | |||
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Share Holders Agreement | |||
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Relieving Letter | |||
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Dismissal Letter | |||
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Privacy Policy | |||
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Increment and Appraisal Letter | |||
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Agreement for Sale of Immovable Property | |||
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Share Purchase Agreement | |||
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Warning Letter | |||
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Letter for Extended Probation | |||
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Letter of Intent to Hire | |||
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Office Sharing Agreement | |||
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Fixed-Term Period Employment Agreement | |||
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Permanent Employment Agreement | |||
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Work For Hire | |||
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Consultancy Agreement | |||
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Leave and License Agreement | |||
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Copyright License Agreement | |||
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Trademark Assignment Deed | |||
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Non-Disclosure Agreement | |||
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Appointment Letter | |||
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Increment and Appraisal Agreement | |||
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Share Purchase Agreement | |||
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Terms of Use | |||
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Non-Disclosure and Non-Compete Agreement | |||
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Non-Disclosure and Non-Solicitation Agreement | |||
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Terms of Use | |||
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Privacy Policy | |||
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Influencer Agreement | |||
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Social Media Company Agreement | |||
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Actors Agreement | |||
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Service Agreement | |||
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Vendor Agreement | |||
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Refund and Cancellation | |||
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Loan Agreement | |||
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Disclaimer | |||
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Disclaimer | |||
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Shipping Policy | |||
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Trademark License Agreement | |||
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Software Development Agreement | |||
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Trainers Agreement | |||
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Work from Home Policy | |||
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Membership Agreement | |||
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Delivery Boy Agreement | |||
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Annual Maintenance Agreement | |||
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Outsourcing Agreement | |||
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A letter of intent is an instrument by which an individual or an entity expresses its intention to enter into a contract with another individual or entity for any contemplated transaction. It is neither an offer or a promise to carry out the contemplated transaction, nor does it form a legally binding contract. It is an instrument laying out the basic terms and conditions that shall be applicable to a contemplated transaction if carried out. However, a letter of intent does not express the certainty of the transaction but informs the interested parties of their obligations, terms and conditions which may be applicable if the transaction is carried out.
A letter of intent can be used for different types of transactions and is named differently for convenience. The employer issues the letter of intent to hire prospective employees; most government companies enter into a memorandum of understanding with the party they intend to transact with; and even the private equity investors issue letter of intent, known as ‘term sheet’, for laying out the basic terms to be incorporated in the final transaction document.
FAQs
1. Is a letter of intent binding on the parties, can I file suit for its enforcement?
According to various judgments, a letter of intent has been held as non-binding on the parties. However, where the letter of intent incorporates the following clauses, the parties may be bound by it
1.1 All the elements of a valid contract
1.2 Detailed rights and liabilities of the parties
1.3 Do not refer to a future agreement
1.4 Each party acts on the representation of the other party
Hence, depending on the facts and circumstances of the case and language used thereto, a letter of intent may bind the parties. It is therefore advisable to seek legal advice to protect your interests.
2. When is a letter of intent preferred?
A letter of intent is preferred where the terms and conditions of the contemplated transaction are uncertain and the parties are unsure as to the performance of the specific activity. It is an instrument for negotiation and is used to capture the essential terms of the transaction.
3. By what other names can a letter of intent be referred to?
A letter of intent can also be referred to as:
3.1 Intent to Purchase Letter
3.2 Side letters
3.3 Letter of Interest
3.4 Term Sheet
3.5 Memorandum of Understanding
3.6 MOU
3.7 Assurance Letter
3.8 Framework Letter
4. Which transactions require the use of a letter of intent?
While there is no hard and fast rule for issuing a letter of intent, they are typically issued for the following purposes
4.1 Employment and recruitment
4.2 Bulk sale and purchase of goods and services
4.3 Private Investments
4.4 Government contracts
4.5 Institutional financing
A board resolution is a decision made by the Board of Directors of a company. Under the Companies Act 2013, various corporate actions such as, the payment of a dividend; alteration of share capital; approval of related party transaction; and other matters related to the operation of the company require the board approval, which is given through a board resolution(s) passed at the board meeting.
A board resolution is signed on a letterhead of the company. While in India there are no guidelines for a valid letterhead of a company, however, in some countries there are strict guidelines for the same. Accordingly, it should, at least, contain the name of the company, company identification number (CIN), registered and corporate office address and contact details.
Frequently Asked Questions
1. Are there any restrictions on passing a board resolution?
Under section 179 of the Companies Act 2013, the Board of Directors are entitled to exercise all such powers and do all such acts and things, as the company is authorized to do. However, these powers and actions are subject to express provisions contained in the Companies Act 2013, Memorandum of Association, Articles of Association, including the regulations made by the company in general meeting.
2. When is a board resolution considered passed?
The passing of a board resolution depends on the conditions set out in the Articles of Association. The Companies Act 2013 states that a board resolution is deemed to be passed when the majority of directors affirm the decision. In case of equal votes, for and against the resolution, the vote of the chairman of the board shall be the tiebreaker.
3. Can a board resolution only be passed at a board meeting?
Under Section 175 of the Companies Act 2013, a board resolution can also be passed by circulation of the resolution, together with the necessary documents, in addition to the board meeting.
4. Can a nominee director vote on a resolution?
A nominee director may be allowed to vote on a resolution subject to the provisions of the Articles of Association of the company.
5. Can an alternate director vote on a resolution?
An alternate director may be allowed to vote on a resolution subject to the provisions of the Articles of Association of the company.
A gift deed is an instrument through which a person may confer on another person his interests in a property, whether immovable or movable, without any consideration. A valid gift deed requires the following elements to be present in the transaction:
1. The donor should freely consent to transfer the property;
2. There should be no consideration for the transfer of property; and
3. The Donee should express his acceptance to receive the gift during the lifetime of the donor, while the donor still has ownership over the property.
Frequently Asked Questions
1. Does a gift deed require registration?
If the value of the property being gifted is above Rs.100/-, the gift deed requires compulsory registration as provided under section 17(1)(a) of the Registration Act 1908. The gift deed needs to be signed by the Donor and the Donee and should be attested by at least 2 witnesses.
2. Can a gift deed be revoked?
As per section 126 of the Transfer of Property Act 1882, a gift once made cannot be revoked, except on the occurrence of an event as specified in the gift deed, not being in the control of the donor.
3. Can a gift be made of property that might be acquired in the future?
As per section 124 of the Transfer of Property Act 1882, a property which the donor does not have title to in the present or may attain title in the future, cannot be transferred as a gift.
4. Can I accept only a few of the properties being gifted to me as a Donee?
As per section 127 of the Transfer of Property Act 1882, a donee is required to accept all the gifts being transferred through a single gift deed or not accept the transfer at all. However, where the transfer is executed through separate and independent transfers, the donee may choose the gifts he wishes to accept.
5. Can all property of a person be transferred through a gift?
Under section 128 of the Transfer of Property Act 1882, the gift may consist of the donor’s whole property, however, in such instances, the donee is personally liable for all the debts due by the donor at the time of the gift to the extent of the property compromised therein.
A will is a legal declaration by a person, the testator, providing directions for the disposal of his personal property on his demise. A will deed ensures that the disposal of a person’s property is according to his wishes, thereby, preventing any future dispute between the heirs. A will is a unilateral document that takes effect after the death of the testator. It can be revoked or altered by the testator at any time when he is competent to dispose of his property.
Frequently Asked Questions
1. Who can make a will?
Section 59 of the Indian Succession Act 1925, provides that every person of sound mind and above 18 years of age can make a will, provided it has been made without coercion. However, Muslims cannot bequeath their property through a will and are required to follow the Muslim law of succession.
2. Does a will need to be registered? When can it be registered?
Section 18 of the Registration Act 1908, provides that the registration of the wills is optional. However, it is advisable to register a will to avoid future family disputes, as a registered will has a higher evidentiary value. Section 40 of the Registration Act 1908 states that the testator, or after his death any person claiming to be an executor or otherwise under the will, may present it to any Registrar or Sub-Registrar for registration.
3. What are the advantages of a will?
The following advantages are enjoyed on the execution of a will
3.1 Avoidance of family disputes;
3.2 Willful disposal of assets after death;
3.3 Prohibits encroachment;
3.4 Prevents interruptions in business by proper disposal of business interests; and
3.5 Eases and quickens the probate process on the execution of the will.
4. Can a will be revoked or altered?
Section 62 of the Indian Succession Act 1925, mentions that the testator may revoke or alter his will. Further, Section 70 of the Indian Succession Act 1925 provides that a will is automatically revoked if the testator gets married after creating the will.
5. Can revoked will be revived?
Section 73 of the Indian Succession Act 1925 provides that a person can revive a revoked will by re-executing it.
6. I am a Hindu who is a coparcener of a Hindu undivided family; can I bequeath my property through a will?
Yes, a Hindu Coparcener may bequeath his property through a will under section 59 of the Indian Succession Act 1925. Further, a will is protected under section 5 of the Hindu Succession Act, 1956. However, the coparcener shall only be capable to bequeath his self-acquired property and not the ancestral property.
An appointment letter intimates the prospective employee of the basic terms and conditions of his employment, including his designation, date of joining, annual CTC (cost to company), reporting manager, etc.
Appointment Letter often acts as a cover letter to the employment contract and gives the prospective employee a broad overview of the designation and benefits being offered to him.
Frequently Asked Questions
1. Is appointment letter binding on the employer? / Can a prospective employee sue a person on the basis of the appointment letter alone?
Appointment letter alone is usually not binding on the employer or prospective employee as it does not constitute a valid contract between the parties and is used to express the intention of the employer to enter into a separate employment agreement.
2. Is there any restriction on companies to issue an appointment letter?
There are no specific restrictions placed on the issuance of appointment letters by a company. However, while appointing a director or a key managerial personnel, the company should ensure that the provisions of the Companies Act 2013 are duly complied with.
A Non-Disclosure Agreement (NDA), also known as Confidentiality Agreement, is entered between 2 or more parties to preserve and protect the confidential information (such as cost and pricing, projected capital investments, inventory, marketing strategies, customer lists, trade secrets, amongst others) received in the course of transaction, from further disclosure.
What are the different types of the Non-Disclosure Agreements?
There are several types of Non-Disclosure Agreement which one must be aware of before getting one drafted. Those are:
Unilateral Non-Disclosure Agreement:
In a Unilateral Non-Disclosure Agreement, the two parties involved – the owner of the knowledge and the party who agrees to not disclose the confidential information. This type of agreement is usually seen in a professional set-up between the employer and its employees. The employer can make their employees to sign a Non-Disclosure Agreement to safeguard their confidential information related to business.
Bilateral Non-Disclosure Agreement:
In a Bilateral Non-Disclosure Agreement, both the parties will share some confidential information which the either party is obligated to not disclose. An example of this type of Non-Disclosure Agreement is the one signed in a Venture Capital Agreement. In such agreements, information of both parties is meant to stay confidential.
Multi-Lateral Non-Disclosure Agreement:
Under a Multilateral Non-Disclosure Agreement, there are multiple parties involved in the agreement that shares the confidential information with the other parties. In such type of agreement all the parties are obligated not to disclose any confidential information shared.
When do you need to sign a Non-Disclosure Agreement?
There are more than just a handful of situations where you or your business may need a Non-Disclosure Agreement. Some of these include:
Key elements of a Non-Disclosure Agreement
In addition to the involved parties, there are certain essential elements of a Non-Disclosure Agreement that constitutes an essential part of the agreement. These include the following:
The consequences in case of a breach of the agreement?
FREQUENTLY ASKED QUESTIONS
1. Are NDAs binding and enforceable?
An NDA is a valid agreement under the Indian Contract Act 1872. There have been various cases where both the Supreme Court as well High Courts have issued injunctions against former business associates to prevent disclosure of information covered under the agreement.
2. What kind of information can be protected under an NDA?
While there is no certain law which states what information is considered confidential, the following have been held to be confidential information as per the Indian courts
2.1 Trade Secrets
2.2 Client lists
2.3 Industrial drawings
2.4 Intellectual Property
2.5 Prototype products
2.6 Proprietary documents
2.7 Manufacturing processes
3. Can an employee be bound by an NDA post-termination of employment?
Yes, an employee can be bound by NDA post his termination. The same has been upheld by the Delhi as well by the Bombay High court.
4. Are there any exceptions to the disclosure of confidential information?
While there are no express exceptions towards the disclosure of confidential information protected through NDAs, however, a person may disclose confidential information under the following circumstances
4.1 Where the disclosure is required under law or by a statutory authority;
4.2 Where the information has been disseminated into the public domain; or
4.3 Such disclosure is permitted by the owner of the confidential information
5.What is the purpose of a Non-Disclosure Agreement?
There are various purposes of a Non-Disclosure Agreement. These include:
To make a new business deal
To start a new project
To pitch potential investors
To merge and acquire new businesses
6. What should a Non- Disclosure Agreement include?
The common elements of a Non-Disclosure Agreement are:
The parties that are signing the agreement
Description of the information that is considered as confidential
Clarity on the reason why the information is being disclosed
An explanation on how the confidential information should and shouldn’t be used
The duration of the agreement
7. How long does the Non- Disclosure Agreement last?
The duration for which the Non- Disclosure Agreement will last shall be determined by the party that owns the information. They must protect their confidential information for as long as they consider it to be reasonably appropriate.
8. Can I terminate a Non- Disclosure Agreement?
If any of the parties bound by the agreement wishes to terminate it, there should be a clause in the agreement for that. The clause must mention that either of the parties can terminate the agreement after providing notice to the other party involved.
Full and final settlement is a procedure to settle the dues payable by the employer to the employee.
A full and final settlement statement (the “statement”) is a formal declaration by the employee that all outstanding dues payable, have been paid to him in full. The statement also outlines the obligations of the employee post-termination of the employment, thereby protecting the employer from breach of the confidentiality obligations, intellectual property or any litigious action that may be initiated by such former employee on the grounds of non-payment of dues.
Frequently Asked Questions
1. Can all claims be barred by a full and final settlement statement?
While most claims can be waived by an employee under the statement, however, any claims arising out of express provisions of the law can be recovered by the employee. Such claims include
1.1 Payment of gratuity under the Payment of Gratuity Act 1972 cannot be waived pursuant to section 14 of the same;
1.2 Compensation payable under the Workman’s Compensation Act 1923 cannot be waived under Section 17 of the same.
2. Does the full and final settlement statement bar the employer from pursuing legal action against the employee?
While the statement waives the rights of the employee to pursue legal action, the employer is free to initiate legal action against the employee for any dues that arose out of the employment or for violation of the binding obligations.
3. Is a full and final settlement statement binding on the employee?
Yes, a full and final settlement statement is binding on the party signing it, as it is a written declaration towards the settlement of all claims.
4. As an employer what should I keep in mind before getting a full and final settlement statement signed by my employee?
The following points should be kept in mind when getting the statement signed:
4.1 All statutory dues payable to the employee are accounted for;
4.2 Any deductions that have been made towards the indemnification, for damages caused by the employee, the same should be acknowledged by the employee as a fair and equitable deduction; and
4.3 Employee consents that the terms and implications of the statement have been understood by him.
A lease deed is an instrument to transfer the right to possession and enjoyment, though not the title, of an immovable property, from the transferor to the transferee, in consideration of a price in the form of rent or premium. The transferor is called the Lessor and the transferee is called the lessee.
A commercial lease deed is executed between two or more parties where the property in question is being leased for commercial activities, like office operation, warehousing, manufacturing, amongst others. With the ever growing and dynamic real estate market, it is important that the interests of both the Lessor and the Lessee are adequately protected for their mutual benefit.
The agreement designed to rent out or lease a commercial property is known as a commercial lease deed. A legal document, the commercial lease deed will lay out all the terms under which the commercial property will be leased out from the owner to the tenant. In most cases, the relationship between a landlord and his tenant is cordial. However, that should not be a reason for not getting a written agreement made before getting or letting a property on lease. The agreement will help sorting out any issues or complaints which might arise in the future.
A commercial lease agreement is a written document signed between the landlord and the tenant. This agreement is usually required when the landlord decides to lease the property for a longer duration. This duration can range between 1 and 5 years, and in some cases, it can even go a longer duration. The agreement is needed in such cases to help lay down all the provisions while legally binding both the parties.
Who should use a Commercial Lease Agreement?
Any person above 18 years of age who wants to get a property on rental to setup his business can get a commercial lease deed made. Similarly, any owner who wishes who wants to rent out his property to someone who runs a business or has an income producing entity can also get a commercial lease agreement made.
There are several types of commercial lease agreement. Some of the important ones are:
Gross lease or full service lease
This is the type of lease that has Expense Stop – a mechanism in the lease in which the lessee is liable for paying fixed operating costs and the landlord has to pay all the operating expenses which fall under the Expense Stop.
Net lease
Under a net lease, the lessee is liable for paying all or some part of the maintenance cost, taxes, and insurance fee for the property. All of this is in addition to the rent that the lessee owes to the landlord. This is the most common type of lease agreement used in commercial real estate industry.
Percentage lease
Another type of lease which is commonly found in real estate industry. Under this type of lease, the lessee pays the fixed rent and agrees to share some amount of his business’s revenue with the landlord.
Q.1 What is a lease deed?
A lease deed or a lease agreement is a contract signed between two parties. Under the agreement, one party agrees to pay rent to the other party who owns the property.
Q.2 Who should be included in a commercial lease agreement?
Some of the important things which should be mentioned in a commercial lease agreement include:
Name of both the parties
Duration for the which property is being leased out
Monthly rental and all the other charges
Termination of the lease
Permission for the tenant to sublet the property
Contract renewal
Conflict resolution methods
Q.3 Does commercial lease need to be witnessed?
Yes, the commercial lease needs to signed by both the parties and two witnesses.
Q.4 Does a landlord have to renew a commercial lease?
In India, leases are not automatically renewable since there is a stamp duty which is payable during the formation of such agreements. Therefore, at the time of the formation of the lease, renewal options should be thought through properly for the lessee.
Q.5 Can restraints be placed on the use of the property by the lessee?
Section 108(o) of the Transfer of Property Act 1882 provides that the lessee may use the leased property as a man of ordinary prudence would use them if they were his own; but the lessee must not use, or permit another to use, the property for any other purpose other than for which it was leased. The Lessee cannot use the leased property in violation of the lease deed or any activity that may cause destruction to the property.
Q.6 Can the property be transferred by the Lessor if it is leased?
Under section 109 of the Transfer of Property Act 1882, the Lessor can transfer the leased property to another person (the “transferee”), who shall then be subject to the rights and liabilities as of the Lessor, post the transfer. The original lease continues to subsist in case of such a transfer and it is not necessary to enter into a new deed. However, in order to avoid any disputes between the Lessee and the transferee it is prudent to enter into a ‘Deed of Attornment’, wherein the Lessee and the Lessee recognize each other’s rights.
Q.7 Does leasing the property to the Lessee allow the Lessee to further lease/sub-lease the property?
Under section 108(j) of Transfer of Property Act 1882, the lessee may sub-lease, mortgage or assign his interest in the leased property, however, the lessee by not, by reason of such transfer, cease to be the subject to any of the liabilities attaching to the lease. this right of the lessee is subject to the terms of the lease deed, which may place restraints on the lessee.
Q.8 Can the Lessor access the property during the tenure of the lease?
Under section 108(m) of the Transfer of Property Act 1882, the Lessor or his agents may enter and access the property and inspect the condition of the property at reasonable times and by providing reasonable notice to the Lessee.
Q.9 Does the lease deed need to be registered?
Section 17 of the Registration Act 190 provides that the registration of a lease deed of immovable property is mandatory if the lease period is for a duration exceeding 12 months. However, lease deed below a year are not required to be registered. Registration, however, is advisable as a registered lease deed has a higher evidentiary value in the courts of law.
A lease deed is an instrument to transfer the right to possession and enjoyment, though not the title, of immovable property, from the transferor to the transferee, in consideration of a price in the form of rent or premium. The transferor is called the Lessor and the transferee is called the lessee.
A residential lease deed is executed for the purpose of allowing the Lessee to possess and reside at the premises for a certain period of time in return for rent. A Lease Deed protects the interest of the Lessor by placing restraints on the Lessee, and also of the Lessee by providing them legal rights to enjoy the peaceful possession of the premises.
A lease deed is a legally binding document between property owner or landlord and the tenant. The former is referred to as the lessor while the latter is termed as the lessee. The document contains all important information pertaining to the property such as amount of rent to be paid, duration of the agreement, security deposit payable, etc. If the term period of a lease deed is more than 11 months, it must be registered.
Some of the details that should be included in a lease deed are listed below:
- Details of the property including location, address, structure, and furniture, if applicable.
- Other inclusions of the property such as parking space, etc. It should be clearly mentioned whether such spaces are payable extra or covered within the monthly rent payable.
- Duration of the lease, provision of its renewal, and terms and conditions applicable for renewal.
- Financials involved such as rent payable, maintenance fee, security deposit, and the due date for the rent. The lease deed can also include terms of penalty and interest applicable in case the payments are delayed. There can be other charges such as water bill, electricity charges, and other utility bills which should be mentioned if they have to be paid by the tenant.
- Another important point to be mentioned is the termination clause. Reasons under which the lease deed can be terminated and the duration of notice to be given by either party to the other in case one intends to terminate the deed must also be mentioned.
The maximum term of a lease deed is usually 99 years, after which the ownership should be shifted back to the lessor. This is also true in cases when a builder is allotted land from the development authority. The period of 99 years is usually considered a safe period which will cover the entire lifespan of the lessee and the ownership of the land will be returned to the lessor afterwards.
The Registration Act 1908 states that any property that is being leased for different purposes such as residential, commercial, hereditary allowances, cultivation, or fisheries should be registered if the period of leasing is more than 11 months. However, if a lease deed is made for a period of 11 months of lesser, it need not be registered.
Here are the documents that are required for the registration of a lease deed:
- Identity proof of the lessor and lessee. Documents such as Aadhaar Card, passport, driving license are considered valid.
- Address proof of both parties
- Passport-sized photos of both lessor as well as lessee
- In case it is a commercial property, company PAN Card and stamp or seal are also required
- Title of the property or original proof of ownership
- Different documents pertaining to the ownership of property such as tax receipt, Index II, etc.
Q.1 Is registration of the lease deed mandatory?
Section 17 of the Registration Act 190 provides that the registration of a lease deed of immovable property is mandatory if the lease period is for a duration exceeding 12 months. However, lease deed below a year is not required to be registered. Registration, however, is advisable in both cases as a registered deed has a higher evidentiary value in the courts of law.
Q.2 Can restraints be placed on the use of the property by the tenant?
Section 108(o) of the Transfer of Property Act 1882 provides that the lessee may use the leased property as a man of ordinary prudence would use them if they were his own; but the lessee must not use, or permit another to use, the property for any other purpose other than for which it was leased. The Lessee cannot use the leased property in violation of the lease deed or any activity that may cause destruction to the property.
Q.3 Can the property be transferred by the Lessor if it is leased?
Under section 109 of the Transfer of Property Act 1882, the Lessor can transfer the leased property to another person (the “transferee”), who shall then be subject to the rights and liabilities as of the Lessor, post the transfer. However, such transfer of leased property can be limited as per the terms of the lease deed executed between the Lessor and Lessee.
Q.4 Does leasing the property to the Tenant/ Lessee allow them to further lease the property?
Under section 108(j) of Transfer of Property Act 1882, the lessee may sub-lease, mortgage or assign his interest in the leased property, however, the lessee by not, by reason of such transfer, cease to be the subject to any of the liabilities attaching to the lease. This right of the lessee is subject to the terms of the lease deed, which may place restraints on the lessee.
Q.5 Can the Lessor access the property during the tenure of the lease?
Under section 108(m) of the Transfer of Property Act 1882, the Lessor may enter and access the property and inspect the condition of the property at reasonable times.
Q.6 I am renting an apartment to a family member, should I enter into a lease deed?
While there is no law that mandates the requirement of entering into a lease deed when renting an apartment to a family member, it is advisable that a deed is executed to protect the interests of the parties.
An eviction notice is a notice issued by the Lessor to the lessee, or vice versa, communicating his decision to terminate the lease agreement entered between them. This notice can be issued prior to the expiry of the lease or on its expiry. It is issued for the protection of the interests of Lessor and the lessee.
An eviction notice is a mandate of law in India for both residential and commercial property. Section 106(1) of the Transfer of Property Act, 1882 dictates a mandatory notice period for the termination of lease agreement, so as to provide the lessee with adequate time to vacate the property or raise objections against such eviction, if any.
Frequently Asked Questions
1. What if the notice period is not mentioned in the agreement?
Section 106(1) of the Transfer of Property Act 1882 provides that in the absence of a notice period in the lease agreement or a similar agreement, a notice period of 15 (fifteen) days is mandatory. Where a commercial property is being used for manufacturing or agricultural activities, the notice period shall be 6 (six) months.
2. Will a notice be required if there is no written rent/lease agreement?
In the absence of a written agreement, it is mandatory under section 106(1) of the Transfer of Property Act, 1882 to provide a 6 (six) months’ notice where an immoveable property is involved in manufacturing or agricultural activity and a 15 (fifteen) day notice where the property is leased for any other purpose.
3. What is the effect of non-issuance of eviction notice?
An eviction notice is a prerequisite under the applicable laws for eviction of a lessee. Any suit filed for repossession of property in the absence of such notice maybe liable for dismissal if an eviction suit is filed prior to expiry of the lease agreement.
4. Who should send the eviction notice?
An eviction notice should be sent in the name of the property owner. Where there are co-owners, any one may unilaterally opt to send the notice. In case of a Hindu Undivided Family (HUF), an eviction notice can be sent in the name of the Karta.
5. Would an oral eviction notice suffice?
While an oral notice is sufficient, it is advisable to send a written notice through a licensed advocate, as it would otherwise be very difficult to prove the presence and establish the contents of such oral notice, in case a litigation issue arises and would unnecessarily prolong the process.
6. Can the Lessor collect rent for the duration of the notice period?
The Lessor is permitted under law to collect the rent during the notice period and may continue to collect it after the termination of the lease agreement if the lessee has not vacated the premises.
The Persons holding shares in a company are called Shareholders of that company. A shareholder’s agreement is an agreement initiated between the members or the shareholders of the entity, and it has the power to monitor and regulate the relationship between these members or shareholders, the management prevalent in the company, ownership of the shares. It even safeguards the shareholders from any injustice or deception.
A shareholder’s agreement is also known as a stockholders’ agreement, and it is more or less an agreement between the shareholders of an organization. A stockholder’s agreement even describes how an organization needs to be operated along with outlining the rights and legal obligations of the equity holders.
FAQs
1. When are shareholder agreements entered into?
Shareholder’s agreements are commonly entered into in the following situations:
1. Existing shareholders wish to come to a common understanding towards the running of the company.
2. A new shareholder wishes to protect his interests in the company.
3. A few of the existing shareholders are selling their shares and the remaining shareholders wish to protect their interests in the company.
2. How does a Shareholders Agreement work ?
Shareholder’s agreements are governed by state laws, but federal laws- specifically regulations by the Securities and Exchange Commission (SEC). SEC is involved because shares are securities, especially shares available to the public. Shareholder’s agreements are legally binding contracts.
3. Is execution of a shareholder’s agreement sufficient to make it enforceable against the company?
A shareholder agreement by itself might be enforceable against the other shareholders on execution, however it might not be fully enforceable against a company, especially where the stipulations of the agreement are not in accordance to the charter documents of a company.
The courts in India have held that for the shareholder's agreement to be enforceable against a company the agreement needs to be ratified by the general body of the company and the charter documents of the company are to be amended incorporating the stipulations under an agreement. Therefore, the execution of a shareholder agreement by the company cannot be enforced against a company unless its charter documents contain the rights and obligations granted under the agreement.
4. Can shareholding agreements override express provisions of the Companies Act 2013?
Section 6 of the Companies Act 2013, states that the Act shall override the charter documents of a company, or any agreement executed by it, or any resolution passed by the company in general meeting or by Board of Directors, whether the same be registered, executed, or passed, as the case may be.
5. What is right of first refusal in share sale? How is it different from the right of the first offer?
A right of first refusal in share is when a person has the right but not the obligation to purchase the shares being sold by another shareholder at the same (or better but not worse) terms and conditions as maybe offered by a third party, in the event the right holder is unable to purchase the shares at the same terms and conditions, the other shareholder may sell the shares to the third party.
However, in a right of first offer, the right holder has the right but not the obligation to make the first offer to the shareholder intending to sell his shares and can only sell his shares to a third party only if the third party is able to provide a better deal.
6. What is tag-along and drag-along rights? How are they different?
While tag-along rights and drag-along rights might sound somewhat similar but they are opposite to each other. Under a tagalong right, the right holders have the right but not an obligation to sell their shares (usually in proportion to their shareholding) in case any of the other shareholders wish to sell their shares to a third party.
In contrast under the drag-along concept of rights, the right holders (usually a group of shareholders forming a majority) may force the other shareholders (minority shareholders) to sell their shares to a third party. Usually enforced where a majority of the investors feel that it would be better to sell the company to another company or to an industrial group. Usually, these rights are one of the last resorts enforced by the investor where he wishes to exit the company.
7. What are pre-emptive rights?
Pre-emptive rights give a shareholder the opportunity to buy additional shares in any future issues of a company’s common stock before the shares are made available to the general public. While these rights are already present under section 62(1) of the Companies Act 2013 for equity shareholders, investors wishing to subscribe to convertible preference shares or other convertible securities should ensure such rights are present under the shareholder's agreement.
8. Are shareholding agreements binding against shareholders not a party to the agreement?
Shareholding agreements may not be in totally binding on shareholders not a party to the agreement. Where the rights under the agreement are incorporated in the charter documents of the company the agreement might be binding on non-party shareholders, however where the stipulations are not incorporated in the charter documents of a company or are personal in nature, they cannot be enforced against non-party of the agreement pursuant to the doctrine of privity of contract.
9. Can shareholders appoint directors to the board of a company pursuant to a shareholder’s agreement?
A shareholder may appoint a director to the board of the company pursuant to section 161(3) which states that the Board of a company may appoint any person as a director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement.
10. Is there a minimum shareholding requirement to enter into a shareholding agreement?
There is no provision under the Companies Act 2013, for a minimum shareholding for a person to enter into an agreement with the company. However, it is advisable that an investor should take up at least 10% of the shareholding of the company so as to be able to file suits for oppression or mismanagement of the company under the Companies Act 2013.
A relieving letter is issued by an employer notifying them of receipt and acceptance of the employee’s letter of resignation. Such termination is pursuant to the procedure established under the employment contract. A relieving letter may also be issued to an employee where the employee has been employed under the fixed-term employment agreement.
FAQs
1. What is meant by relieving letter?
Relieving letter is the formal way of informing the employee that his/her resignation has been accepted and he is relieved from his responsibilities and duties he/she was bound with subject to the contract of employment signed by him/her.
2. Who writes relieving letter?
Relieving letters are often requested by the new employer to ensure that the employee completed his/her notice period and left the previous employer after completing all necessary formalities.
A dismissal letter is usually issued by an employer informing the employee of the decision of the employer to terminate the employee employer relationship pursuant to a repeated act of the employee in breach or contravention to the employment terms and company’s policies. Such letters are usually in the form of a notice informing the employee the time period by which his employment shall be terminated, and his full and final settlement shall take place
FAQs
1. What is a dismissal letter?
A termination letter is a formal notice letting an employee know they are being dismissed from their current job. This letter details the reasons for the involuntary turnover, lists the next steps for the employee to take and explains any benefits or compensation they will receive
2. What is the difference between dismissal and termination?
Termination gives the parties the right to determine the contract at any time by giving the prescribed period of notice. Dismissal, on the other hand, is a disciplinary measure that carries no benefits.
3. What is the correct dismissal process?
A privacy policy is a document contained on a website that explains how a website or organization will collect, store, protect, and utilize personal information provided by its users. It governs the collection of data (especially sensitive data like biometrics or financial information) from the user and the use of such data by the service provider (website, application, portal, platform etc.) or its transfer to any third party, with the aim to protect misuse of any information by the service provider/intermediary or any third party who has access to such information.
Under the Information Technology Act, 2000 read with rule 3 of the Information Technology (Intermediaries Guidelines) Rules, 2011, and rule 4 of the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011, any person who on behalf of another person receives, stores or transmits any electronic information or data or provides any service including telecom service, internet service, web-hosting service, search engines, online payment sites, online-auction sites, online-market places (collectively intermediaries) is required to have a privacy policy.
FAQs
1. Are privacy policies binding?
A privacy policy is a statutory requirement under the Information Technology Act, 2000 for every website and has a binding effect on the user. Further, Rule 5 of the Information Technology (Intermediaries Guidelines) Rules, 2011 authorizes the website to terminate the Users access in case of non-compliance with the User Agreement and Privacy Policy.
2. Can a service provider transfer data collected to another person?
Yes, a service provider may transfer the data to another person. However, the service provider should ensure that the transferee provides the same level of data protection that is provided by the service provider. Further, the transfer may be allowed only if it is necessary for the performance of the lawful contract between the service provider and the provider of information (user) or where the user has consented to data transfer.
3. Can a user withdraw the consent given to collect information or data provided?
Under rule 5(7) of the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011, a user may withdraw the consent given to a service provider to collect information. However, on withdrawal of consent to collect information, the service provider may not be able to provide goods or services for which the information was collected.
4. Does a privacy policy prevent a service provider from disclosing services to government authority?
A privacy policy only protects against disclosure of information to unauthorized third parties, however, rule 6 provides that the service provider may disclose the information to fulfil its legal obligations or by any order under the law for the time being in force.
5. What's the difference between a privacy notice and a privacy statement?
Privacy Notice is a statement made to a data subject that describes how the organization collects, uses, retains and discloses personal information. A privacy notice is sometimes referred to as a privacy statement, a fair processing statement or sometimes a privacy policy.
An increment and appraisal letter are issued by the employer to its employee informing the employee of the employer’s decision to elevate the employee to a higher position or any increase paid to the emoluments of the employee in lieu of performance. Such letter is usually issued pursuant to an appraisal of the employee done by the employer and informs the employee of the outcome of the appraisal. It may also lay down the amendments and changes, if any, in the terms and conditions of the employment.
FAQs
1. What is an increment letter?
Increment Letter is a document which states the salary increment given by the employer to the employee. An increment letter is usually given after the Performance appraisal cycle is completed, or when employee performance is good, or as per the organisation policy. Increment letter is also known as Appraisal Letter.
2. What does increment in salary mean?
Salary increment is measured as a percentage of an employee's overall base pay. It is usually a percentage of the employee's annual salary. Increments are used by employers to increase or decrease base salary, as well as to grant incentives.
A contract for sale or an agreement to sell is a contract wherein the owner of a property agrees to sell the property to the buyer on a future date at a predetermined price and upon fulfillment of certain conditions. A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties; it does not of itself create any interest in or charge on such immovable property. For e.g. a contract for sale is commonly used by builders to sell apartments or buildings before constructing it, under the promise to sell the property once it is constructed in accordance with the agreed specifications.
1. What is the difference between a contract for sale and a sale deed?
Basis | Contract of Sale | Sale Deed |
Creation of interest or charge | Does not create any interest in the property being transferred | Creates interest in the property |
Time of transfer of ownership | Take place at a future date | Takes place at the execution itself |
Possession | Possession may or may not be handed over at its execution | Possession is required to be handed over at execution |
Conditionality | Such a contract is based upon the fulfilment of conditions precedent or the occurrence of an event | Such an agreement involves the absolute transfer of title. |
2. Is every joint owner of the property required to execute the contract for the sale of an individual share in the property?
Where a property is owned by 2 or more people however holding different interests or shares in the single property, either one of them may pursuant to section 44 of the Transfer of Property Act 1882 sell their share in the property to another person.
3. Does a contract of sale require registration?
Under section 17(1)(b) every document which creates, whether in present or in future, any right, title or interest, is required to be registered under the Registration Act 1908. Hence a contract for sale does not create any right or interest in the property, it is not required to be registered, however, every sale deed needs to be mandatorily registered.
4. Why would one execute a contract for sale instead of a sale deed?
Although a contract for sale does not grant any interest in the property, however, it provides security against any undue transfer of property or non-fulfillment of an obligation. Section 53A of the Transfer of Property Act 1882, states that by the execution of the agreement to sell, the seller is barred from transferring the property to another person where a buyer has fulfilled (even if in part) his obligations for the transfer of the property.
A share purchase agreement is a legal document that defines the terms and conditions under which the shares of the company are transferred or purchased. It is entered into by a buyer of shares and a holder of shares who determines the terms and conditions at which the shares shall be purchased. Often these agreements are to protect the interest of the parties. What one needs to understand is that it’s not the shares which are being sold but rather a part of the company. It distinguishes between a sale of all shares of a company and a partial sale and hence it becomes important in this agreement that the contains enough protection against false representations and solicit warranties as to the key aspects of the company.
FAQs
1. Are all rights held by a shareholder vested in the purchaser on transfer of the shares?
While all rights are granted by the companies act 2013 transfer upon the sale of shares, however if the rights are granted pursuant to an agreement entered into between the company and the seller, the rights may not transfer as they might be personal in nature.
2. What all should be considered before entering into a share purchase agreement?
The following should be considered while purchasing shares:
a) Number of shares already issued by the company
b) Price of the shares
c) The representations and warranties being made by the seller
d) Indemnification provided on breach of contract
e) Restrictions on the seller to engage in business
3. Are there any restrictions on the pricing of the shares being sold?
Yes, restrictions on prices might be placed on the shares being sold depending on whether parties are persons resident outside India or if the shares are listed or not.
4. Can a subsidiary company purchase shares of its holding company?
Section 19 of the Companies Act 2013 specifically prohibits a subsidiary to purchase or hold shares of the company.
5. What is the use of Share Purchase Agreement?
The share purchase agreement is used when an organization or an individual is purchasing or selling the shares in the company with another person or organization.
A warning letter is issued to an employee by the employer informing the employee to refrain from any act of misconduct or omission to perform his duties. The warning letter is sent to the employee on his act or omission which results in willful misconduct in contravention of terms of employment agreement or company’s policies.
These letters may also instruct the employee to perform certain actions to mitigate the effects of his misconduct or even levy a penalty on the employee if provided the contract of employment or any company policy applicable to the employee. Usually warning letters follow the principle of comply or explain, where the employee is to either provide reasonable explanation for his conduct or comply with the instructions of the warning letter.
FAQs
1. What is a Warning Letter to employee?
An Employee Warning Letter is a form that an employer gives to an employee to inform them of a breach of company protocol. It serves to let the employee know of their infraction and what the consequences of their action will be.
2. What happens after Warning Letter?
The Warning Letter requests corrections and a written response within a specific period after receipt of the letter—usually fifteen working days.
3. How many warning letters are given?
Usually one verbal and two written warning letters are given before the dismissal. However, in cases of severe or gross misconduct, dismissal can be done prior warning.
Human resources are one of the most invaluable assets of any business, keeping this in mind businesses while recruiting their employees assess their prospective employees with the utmost diligence possible. However at times the time provided to assess the employee in the form of probation is inadequate and hence requires an extension. To give this effect the company issues letter of extended probation to its employees informing the employees of their intention to extend the probation period.
1. How long can you extend someone's probation?
Between one and six months is typical for an extension, but make sure you comply with any probationary period HR policy you have and/or any provisions in your employee's contract about extending a probation period.
2. How do you extend someone's probation?
Use a probation period extension letter to tell an employee how long. The length is often one month, but you can extend month-by-month if you think the employee still needs more time.
A letter of intent is an instrument by which one person, or an entity expresses its intention to enter into a contract with another person or entity for any contemplated transaction. It is not an offer or a promise to carry out the contemplated transaction nor does it form a legally binding contract. It is an instrument laying out the basic elements of the terms and conditions that will be applicable to a contemplated transactions, if carried out. It is generally used in a commercial transactions to initiate negotiations between the interested parties.
A letter of intent can be used for different types of transactions and named differently for the purpose of convenience. The employer's issue letter of intent to hire to the prospective employees, most government companies enter into a memorandum of understanding with the parties they intend to transact with, and even private equity investors issue letters of interest termed as Term Sheets to layout the basic terms to be incorporated in final transaction documents. Such letters, memorandums, term sheets, etc. do not express the certainty of the transaction but inform the interested party of all obligations, terms, and conditions to which may be applicable to the other party in the event the transaction is carried out
1. What is a letter of intent to hire?
A letter of intent to hire a contractor is an informal way of forming an agreement between the contractor and the hiring company. Companies might use a letter of intent instead of an offer letter because they haven't worked out all the details of the job or they can't legally make an offer yet.
2. Is a letter of intent to hire binding on the employer?
A letter of intention has been held not to be binding on the parties according to various judgments of courts of law.
However, where the letters of intent incorporate the following the parties may be bound by it;
Hence, depending on the facts and circumstances of the case and language used thereto, a letter of intent may bind the parties. It is therefore advisable to seek legal advice
3. When is a letter of intent to hire is issued?
A letter of intent to hire is issued when to a prospective employee expressing the interest to hire them specifying the terms of employment during the probation. Only on the acceptance of such terms by the candidate, the employer offers employment.
OFFICE SHARING AGREEMENT
An office-sharing agreement is a legally binding contract in the nature of an understanding between several business organizations who operate within a single premise but occupy different areas within it. These organizations may be lessees of a common Lessor or a lessee and a sub-lessee. The office-sharing agreement demarcates the scope of the use of the premises, the common utilities, and the collective and several responsibilities of the parties towards the premises.
FAQs
1. Is office sharing considered sub-leasing?
An office-sharing agreement is a mutual understanding between the parties as to share the facilities and equipment on the property and does not vest any interests in the property on the parties. It rather creates additional obligations on the parties with respect to their use of the property.
2. What are the advantages of an office sharing agreement?
An office-sharing agreement provides the following advantage:
3. What is an office agreement?
An office lease agreement is a legal document between a landlord and tenant that will be occupying space for non-retail use. The space is generally suited for occupations such as accountants, attorneys, real estate agents, or other related fields where clients are welcome for professional consultation.
An employment agreement lays down the terms of engagement of the employee, including without limitation, job description, reporting relations, the salary, and other obligations the employee may have to the employer and vice versa.
A fixed-term employment agreement is an agreement entered by employers with employees for a fixed period of time that may be subject to renewal. Through a fixed-term employment agreement, the employee receives an incentive to perform better for the renewal of the agreement and at the same time provides the security of being a salaried employee.
FAQs
1. What’s the difference between a fixed-term employment agreement and a work-for-hire agreement
A fixed-term employment agreement establishes an employee-employer relationship between the parties, whereas in a work-for-hire agreement an independent contractor relationship is established between the parties.
2. Is there any legal limit on the number of times a fixed-term employment agreement may be renewed?
There is no specific law dealing with the renewal of a fixed-term employment agreement, usually, the terms of the renewal are negotiated by the parties.
3. Are there any legislations in India governing employment agreements?
In India there is no specific legislation governing employment agreements, however employment agreements are subject to the Indian Contract Act of 1872. Further, if the employee satisfies the definition of the workman (depends on salary and nature of work), the employment agreement may be subject to labor legislation.
4. Can an employee be prevented from working with or engaging in a competing business post-termination?
An employee may be prevented from working with or engaging in a competing business only for the term of his employment, this period may include the remainder of the employment term where the employment is prematurely terminated by the employee. No employee may be prevented from engaging or working even if it is with a competing business post the termination of the employment agreement as, under section 27 of the Indian contract act 1872, no person may enter into a contract in restraint of trade.
5. Is the employment agreement still valid if the employee has lied about his academic qualification or expertise or made false claims?
Under sections 17 and section 18 of the Indian contract act 1872, any contract entered into by parties where one party has committed fraud or misrepresented material facts, the other party may at its option render the agreement void, similarly and employment agreement may be voided by the employer.
6. Can an employer force an employee to perform his obligation towards his work under an employment agreement?
Under section 14 of the Specific Relief Act of 1963, a contract, the performance of which involves the performance of a continuous duty which the court cannot supervise cannot be enforced, hence an employee may not be forced to perform his obligations under an employment agreement, however, the employer may file a suit for recovery of any money paid for the same.
An employment agreement lays down the terms of engagement of the employee. An employment agreement sets out the expectation of the employer from the employee, the scope of the job to be done by the employee, his reporting relations, the salary and other obligations the employee may have to the employer and vice versa
A permanent employment agreement as the name suggests is an agreement where a person is employed for unfixed term, which can be terminated only in accordance to the procedure established under the agreement.
FAQs
1. Are there any legislations in India governing employment agreements?
In India there are no specific legislations governing employment agreements, however employment agreements are subject to the Indian Contract Act of 1872. Further, if the employee satisfies the definition of workman (depends on salary and nature of work), the employment agreement may be subject to labour legislations.
2. Can an employee be prevented from working with or engaging in a competing business post termination?
An employee may be prevented from working with or engage in a competing business only for the term of his employment, this period may include the remainder of the employment term where the employment is prematurely terminated by the employee. No employee may be prevented from engaging or working even if it is with a competing business post the termination of the employment agreement as under section 27 of the Indian contract act 1872, no person may enter into a contract in restraint of trade.
3. Can an employment agreement still be valid and enforceable if the employee has lied about his academic qualification or expertise or made false claims?
Under sections 17 and section 18 of the Indian contract act 1872, any contract entered into by parties where one party has committed fraud or misrepresented material facts, the other party may at its option render the agreement void, similarly and employment agreement may be voided by the employer.
4. Can an employer force an employee to perform his obligation towards his work under an employment agreement?
Under section 14 of the Specific Relief Act of 1963, a contract, the performance of which involves the performance of a continuous duty which the court cannot supervise cannot be enforced, hence an employee may not be forced to perform his obligations under an employment agreement however, the employer may file a suit for recovery of any money paid for the same.
At times businesses may require people with a specialized skill set on a project-to-project basis but not as a salaried employee owing to the seasonality of the work. Hence such persons may be engaged by another as an independent contractor through a work for hire agreement.
Under a work for hire agreement the person performing the work is not a salaried employee but a contractor and hence has the independence to choose to do the work according to his or her methods if the work is completed in conformity to the specifications provided by the person hiring him.
Usually work for hire agreements are entered into for the development of intellectual property such as designing of a website or designing of a trademark etc. The agreement ensures that any information shared between the parties remains confidential and sets out the ownership status of the work performed produced.
FAQs
1. What’s the difference between a fixed term employment agreement and a work for hire agreement?
Fixed term employment agreement establishes an employee-employer relationship between the parties, whereas in a work for hire agreement an independent contractor relationship is established between the parties.
2. What is the difference between a work for hire agreement and a consultancy agreement?
Under a consultancy agreement, the person hired as a consultant only provides the relevant information and assists in the completion of the work. Whereas under a work for hire agreement the person hired performs the task at hand.
3.Are there any legislations in India governing work for hire agreements?
Generally, a work for hire agreement is governed by the Indian Contract Act of 1872, however under certain circumstances should the work-for-hire be covered under the meaning the contract labour as under the Contract Labour (Abolition and Regulation) Act1 970, the person hiring may have to fulfill the obligations of the principal employer under the same.
4. What all should a work for hire agreement incorporate?
A work for hire agreement should incorporate the following:
A person may require consultancy services for gaining assistance on subjects where it lacks expertise, therefore they hire consultants to gain knowledge and assistance on the same.
A consultancy agreement stipulates the scope of work along with the rights and obligations of the parties for the execution of the same. A consultancy agreement is entered into on a principal-to-principal basis, i.e. neither Party shall be entitled to act on each other’s behalf or bound by the acts of the other party.
FAQs
1. What is the importance of a consultancy agreement?
A consultancy agreement is executed between the parties to define the terms of service, rights and obligation of the Consultant during the term of this Agreement and post-termination. Further, this Agreement is executed to ensure that any information shared between the parties remains confidential and the intellectual property is protected.
2. What all should a consultancy agreement incorporate?
A consultancy agreement should incorporate the following:
A license as per the Indian Easement Act 1882, is the right granted to a person to do an activity on the property of another person, which in the absence of a grant of such right would be illegal.
A leave and license agreement is a legally binding agreement which allows the licensee to use the property of the licensor for conducting certain activities, however, it does not create any interest in the property being licensed. This Agreement is more like granting permission for carrying out certain activities on the property.
The popularity of leave and license agreement has increased as opposed to a lease agreement in the light of control of rights favouring the licensor.
FAQs
1. What is the difference between a lease deed and leave and license agreement?
Basis | Lease Deed | Leave and License Agreement |
Creation of interest in the property | Creates interest in the property | Does not create an interest in the property |
Transferability | Can be transferred or assigned to another person unless specifically prohibited | Cannot be transferred to another person. |
Revocation | Cannot be revoked unless in accordance with section 111 of the Transfer of Property Act. | Can be revoked at any time by the licensor at his will |
Regulated under the state rent control Act | Is always regulated by the State rent control Act and hence falls under rent control | may or may not be regulated by the rent control act depending on the state. |
Subrogation of rights | Allows the lessee to sublease the property | No sublicensing is allowed under such an agreement. |
2. What all should be included in a leave and license agreement?
A leave and license agreement should contain the following:
3. Should leave and license agreement be registered?
Leave and License Agreement is necessary to be registered under section 55(1) of Maharashtra Rent Control Act 1999. Section 55(2) places this responsibility clearly on the landlord.
A copyright is a right granted to the author(s) or creator(s) of artistic work(s) or a work having a unique level of creativity to exercise ownership right over such works. A copyright under the Copyright Act, 1957 means the exclusive right to do or authorize the doing of certain actions in respect of a work or any substantial part. Further a license is a permission granted to the holder of the license to use the property so licensed in accordance with conditions attached to the license.
A copyright license agreement is basically a license granted by the holder of copyright to a person to use work) to a limited extent or within a set scope.
FAQs
1. What is the importance of a copyright license agreement?
Section 30 of the Copyright Act 1957 states that the owner of a copyright in any work, either existing or future, may grant any interest in the copyrighted work only by granting a license in writing. These licenses usually take the form of a copyright license agreement, which ensures the protection of the copyright from infringement by unwarranted use and dictates the scope within which the copyrighted property may be used.
2. What should a copyright license agreement contain?
A copyright license agreement should contain, inter alia, the following terms:
3. What if the copyright license agreement does not mention the term or jurisdiction for which the license is valid?
Under Section 19(5) of the Copyright Act 1957, where the license does not mention the term for which the license is granted it shall be deemed to be granted for a period of 5 years and where the jurisdiction is not mentioned, the right under the license will be deemed to be granted for the whole of India.
4. What is the consequence of using a copyright property without a copyright license agreement?
Use of copyright property without entering into a copyright license agreement might be construed as an infringement of the copyright. Under section 63 of the Copyright Act 1957, a person infringing the copyright granted to the creator, shall be liable to be punished with imprisonment for a term which shall not be less than six months, but which may extend to three years and with fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees.
Trademarks as per the Trademark Act of 1999 are specific symbols, signs, colors, marks, etc., capable of being represented graphically and which distinguish the goods or services of one person from those of others. In a highly competitive demand-driven market, it is quite important that a business person is able to distinguish his or her products and services from the other similar products and services, that’s why businesses develop their trademark. One most common example of a type trademark is a brand name, which becomes synonymous to the product they deal in or the sector in which it works like Microsoft or Android is synonymous to operating systems or Uber to mobile taxis.
Trademarks are essentially legal rights granted to a certain person, trademark is actually a creative concept lacking a singular tangible form, hence they cannot really be sold but the underlying rights can be assigned to a person, such assignment can take for whole or limited rights in relation to the trademark, the instrument used for such assignment is referred to a trademark assignment agreement.
FAQs
1. Are trademark assignment agreements necessary to effectuate an assignment?
Under the Trademarks Act 1999, section 2(1)(b) an assignment is an assignment in writing by an act of the parties. Therefore, to effectuate an assignment, it is necessary it is done so in writing thereby making a trademark assignment a necessity under the Trade Marks Act.
2. Can unregistered trademarks be assigned under a trademark assignment agreement?
Under section 39 of the Trademarks Act, a person holding rights in an unregistered trademark may assign, with or without the goodwill of the business concerned.
3. Can registered users under the Trade Marks Act 1999 assign trademarks?
Section 54 of the Trade Marks Act states that a person, being a registered user of a trademark may not assign or transfer any rights in the trademark by virtue of being a registered user.
4. What should one pay attention to in a trademark assignment agreement?
A copyright license agreement should contain the following terms:
A Non-Disclosure Agreement (NDA), also known as Confidentiality Agreement, is entered between 2 or more parties to preserve and protect the confidential information (such as cost and pricing, projected capital investments, inventory, marketing strategies, customer lists, trade secrets, amongst others) received in the course of transaction, from further disclosure.
What are the different types of the Non-Disclosure Agreements?
There are several types of Non-Disclosure Agreement which one must be aware of before getting one drafted. Those are:
Unilateral Non-Disclosure Agreement:
In a Unilateral Non-Disclosure Agreement, the two parties involved – the owner of the knowledge and the party who agrees to not disclose the confidential information. This type of agreement is usually seen in a professional set-up between the employer and its employees. The employer can make their employees to sign a Non-Disclosure Agreement to safeguard their confidential information related to business.
Bilateral Non-Disclosure Agreement:
In a Bilateral Non-Disclosure Agreement, both the parties will share some confidential information which the either party is obligated to not disclose. An example of this type of Non-Disclosure Agreement is the one signed in a Venture Capital Agreement. In such agreements, information of both parties is meant to stay confidential.
Multi-Lateral Non-Disclosure Agreement:
Under a Multilateral Non-Disclosure Agreement, there are multiple parties involved in the agreement that shares the confidential information with the other parties. In such type of agreement all the parties are obligated not to disclose any confidential information shared.
When do you need to sign a Non-Disclosure Agreement?
There are more than just a handful of situations where you or your business may need a Non-Disclosure Agreement. Some of these include:
When you are sharing any information of your business pertaining to the technology, licensing, or sale of the product.
When your employees are given access to confidential information about your business or product.
When you are giving an offer to someone who can be a potential investor for your business.
When you are going to receive any service from a vendor or a business who will access confidential information of your business
When you have to share sensitive information about your business with a potential buyer
Key elements of a Non-Disclosure Agreement
In addition to the involved parties, there are certain essential elements of a Non-Disclosure Agreement that constitutes an essential part of the agreement. These include the following:
A description containing details of the confidential information.
The purpose and requirement of the parties
The obligations of the parties involved.
What all is excluded from the Non-Disclosure Agreement
The term and duration of the agreement.
The consequences in case of a breach of the agreement?
FREQUENTLY ASKED QUESTIONS
1. Are NDAs binding and enforceable?
An NDA is a valid agreement under the Indian Contract Act 1872. There have been various cases where both the Supreme Court as well High Courts have issued injunctions against former business associates to prevent disclosure of information covered under the agreement.
2. What kind of information can be protected under an NDA?
While there is no certain law which states what information is considered confidential, the following have been held to be confidential information as per the Indian courts
2.1 Trade Secrets
2.2 Client lists
2.3 Industrial drawings
2.4 Intellectual Property
2.5 Prototype products
2.6 Proprietary documents
2.7 Manufacturing processes
3. Can an employee be bound by an NDA post-termination of employment?
Yes, an employee can be bound by NDA post his termination. The same has been upheld by the Delhi as well by the Bombay High court.
4. Are there any exceptions to the disclosure of confidential information?
While there are no express exceptions towards the disclosure of confidential information protected through NDAs, however, a person may disclose confidential information under the following circumstances
4.1 Where the disclosure is required under law or by a statutory authority;
4.2 Where the information has been disseminated into the public domain; or
4.3 Such disclosure is permitted by the owner of the confidential information
5.What is the purpose of a Non-Disclosure Agreement?
There are various purposes of a Non-Disclosure Agreement. These include:
To make a new business deal
To start a new project
To pitch potential investors
To merge and acquire new businesses
6. What should a Non- Disclosure Agreement include?
The common elements of a Non-Disclosure Agreement are:
The parties that are signing the agreement
Description of the information that is considered as confidential
Clarity on the reason why the information is being disclosed
An explanation on how the confidential information should and shouldn’t be used
The duration of the agreement
7. How long does the Non- Disclosure Agreement last?
The duration for which the Non- Disclosure Agreement will last shall be determined by the party that owns the information. They must protect their confidential information for as long as they consider it to be reasonably appropriate.
8. Can I terminate a Non- Disclosure Agreement?
If any of the parties bound by the agreement wishes to terminate it, there should be a clause in the agreement for that. The clause must mention that either of the parties can terminate the agreement after providing notice to the other party involved.
An appointment letter intimates the prospective employee of the basic terms and conditions of his employment, including his designation, date of joining, annual CTC (cost to company), reporting manager, etc.
Appointment Letter often acts as a cover letter to the employment contract and gives the prospective employee a broad overview of the designation and benefits being offered to him.
Frequently Asked Questions
1. Is appointment letter binding on the employer? / Can a prospective employee sue a person on the basis of the appointment letter alone?
Appointment letter alone is usually not binding on the employer or prospective employee as it does not constitute a valid contract between the parties and is used to express the intention of the employer to enter into a separate employment agreement.
2. Is there any restriction on companies to issue an appointment letter?
There are no specific restrictions placed on the issuance of appointment letters by a company. However, while appointing a director or a key managerial personnel, the company should ensure that the provisions of the Companies Act 2013 are duly complied with.
An increment and appraisal letter are issued by the employer to its employee informing the employee of the employer’s decision to elevate the employee to a higher position or any increase paid to the emoluments of the employee in lieu of performance. Such a letter is usually issued pursuant to an appraisal of the employee done by the employer and informs the employee of the outcome of the appraisal. It may also lay down the amendments and changes, if any, in the terms and conditions of the employment.
FAQs
1. What is an increment letter?
Increment Letter is a document which states the salary increment given by the employer to the employee. An increment letter is usually given after the Performance appraisal cycle is completed, or when employee performance is good, or as per the organization policy. An increment letter is also known as Appraisal Letter.
2. What does an increment in salary mean?
Salary increment is measured as a percentage of an employee's overall base pay. It is usually a percentage of the employee's annual salary. Increments are used by employers to increase or decrease base salary, as well as to grant incentives.
A share purchase agreement is a legal document that defines the terms and conditions under which the shares of the company are transferred or purchased. It is entered into by a buyer of shares and a holder of shares who determines the terms and conditions at which the shares shall be purchased. Often these agreements are to protect the interest of the parties. What one needs to understand is that it’s not the shares which are being sold but rather a part of the company. It distinguishes between a sale of all shares of a company and a partial sale and hence it becomes important in this agreement that the contains enough protection against false representations and solicit warranties as to the key aspects of the company.
FAQs
1. Are all rights held by a shareholder vested in the purchaser on transfer of the shares?
While all rights are granted by the companies act 2013 transfer upon the sale of shares, however if the rights are granted pursuant to an agreement entered into between the company and the seller, the rights may not transfer as they might be personal in nature.
2. What all should be considered before entering into a share purchase agreement?
The following should be considered while purchasing shares:
a) Number of shares already issued by the company
b) Price of the shares
c) The representations and warranties being made by the seller
d) Indemnification provided on breach of contract
e) Restrictions on the seller to engage in business
3. Are there any restrictions on the pricing of the shares being sold?
Yes, restrictions on prices might be placed on the shares being sold depending on whether parties are persons resident outside India or if the shares are listed or not.
4. Can a subsidiary company purchase shares of its holding company?
Section 19 of the Companies Act 2013 specifically prohibits a subsidiary to purchase or hold shares of the company.
5. What is the use of Share Purchase Agreement?
The share purchase agreement is used when an organization or an individual is purchasing or selling the shares in the company with another person or organization.
Under the Information and Technology, Act 2000 (IT Act) read with the Information Technology (Intermediaries Guidelines) Rules, 2011, any person who on behalf of another person receives, stores or transmits any electronic information or data or provides any service including telecom service, internet service, web-hosting service, search engines, online payment sites, online-auction sites, online-market places (collectively intermediaries) is required to publish rules and regulations, privacy policy and user agreement on the Platform to inform the User the terms regarding the usage of the Platform.
The Terms of use are required on every website or application to govern their use and prevent any unauthorized use. The terms of use are in a way are an electronic contract between the website /application owner and their users for access and usage between the service provider and the user and is hence covered under the IT Act and is enforceable against both the user and the service provider.
FAQs
1. What should be covered under the terms of use?
While what should be covered under the terms of use depends mainly on the services being offered by the websites. However, in addition to those, rule 3(2) of the Information Technology (Intermediaries Guidelines) Rules, 2011 states that the terms of use must necessarily ensure that the service provider informs the user not to host, display, upload, modify, publish, transmit, update or share any information, related to the following:
2. Can a service provider terminate the access granted to a user on the basis of violation of the terms of use?
The terms of use are considered as a user agreement under the IT Act that allows the service provider to terminate the access or usage granted to the user. Further, rule 3(5) of the Information Technology (Intermediaries Guidelines) Rules, 2011 states that in case of non-compliance with rules and regulations, user agreement, or privacy policy for access or usage of intermediary computer resource, the service provider shall have the right to immediately terminate the access or usage rights of the users.
3. How are Terms of Use different from Terms of Service?
A Terms of Use agreement is the same as a Terms and Conditions or a Terms of Service agreement. These agreements have similar clauses, depending on the website, business model, industry, etc., but the name of the agreement can be named either a “Terms of Use” or a “Terms and Conditions.”
4. What should be included in the Terms of use agreement?
Terms of Use agreements include a clause to inform users that the company is not responsible for things such as
A Non-Disclosure Agreement (“NDA”), also known as “Confidentiality Agreement”, is a legal document signed between the parties, that specifically outlines the confidential information they intend to share with each other, but wish to restrict its dissemination to third parties. Non Disclosure Agreement is one of the most popular documents that the parties execute before initiating any business/contractual relationship to protect their sensitive information from disclosure to the general public or competitors, as such disclosure could severally impact the business of the disclosing party.
NDAs can be categorized as:
Keeping in mind the sensitivity of the information, businesses may require that such information is not misused by the Recipient during their association with the competitor; hence to prevent the Recipient from misusing the information for the benefit of competing for business, one may enter into a Non-Disclosure cum Non-Compete Agreement to restrict the engagement of the Recipient with such competitor.
FAQs
1. Are NDAs binding and enforceable? Does entering into a Non-disclosure cum non-compete agreement affect the enforceability?
NDA is a valid agreement under the Indian Contract Act 1872. There have been various cases where both the Supreme Court as well High Courts have issued injunctions to prevent disclosure of information covered under the agreement. However, the validity of the non-compete clause is determined after considering the circumstances. The courts are inclined to hold such agreements binding for their duration however, post-termination enforceability would depend on a case to cases basis.
2. What kind of information can be protected under an NDA?
While there is no certain law which states what information is considered confidential, the following have been held to be confidential information as per Indian courts:
3. When to sign a non-Disclosure Agreement?
There are various events or circumstances under which an NDA shall be entered into and signed. It is done to keep the information secured as per the terms of the Non-disclosure agreement which are inserted to protect the proprietary information from being misused.
4. What is the difference between a Non-disclosure Agreement and a Non-disclosure cum non-compete agreement?
Under a Non-Disclosure Agreement, the Parties are bound not to disclose the information covered by the agreement, however, the information doesn’t need to be prohibited from being used by the recipient in competing for business. Whereas in a Non-disclosure cum non-compete agreement the recipient apart from making an unauthorized disclosure of the confidential information, is prohibited from engaging himself with any entity/individual in competition with the business/activity of the disclose, thus making it a better choice.
5. Are there any exceptions where the information covered by an NDA can be disclosed?
6. When do you need a Non-Compete Agreement?
The Non-compete Agreements have the clause that specifies the period or market during which and where the employee cannot work with a rival brand or company after his employment ends. Sometimes an organization signs non-compete agreements also with the consultants and contractors besides the employees to safeguard their interests.
7. How long does the Non-disclosure Agreement last?
There is no such specific time limit given on the duration of the Non-Disclosure Agreement. Generally, the Non-Disclosure Agreement is seen to extend over a period of 2 to 5 years. The corporates may also enter into a Non-Terminating Non Disclosure Agreement to protect the trade secrets permanently.
But, as soon as the ‘confidential information’ covered under the NDA becomes public, the Non-Disclosure Agreement has no effect and it comes to an end.
A Non-Disclosure Agreement (“NDA”), also known as Confidentiality Agreement, is a legal document signed between the parties, that specifically outlines the confidential information they intend to share with each other but wish to restrict its dissemination to third parties. A Non-Disclosure Agreement is one of the most popular documents that the parties execute before initiating any business/contractual relationship to protect their sensitive information from disclosure to the public or competitors, as such disclosure could severally impact the business of the disclosing party.
NDAs can be categorized as:
Unilateral NDAs: Where only one of the parties discloses the confidential information to the other.
Bilateral NDAs: Where both the parties disclose certain confidential information to each other, and such information is prohibited from any further disclosure.
Multilateral NDAs: Where all the parties to the agreement disclose certain confidential information to each other and restrict any further disclosure.
At times the information disclosed may include the name of the employees, a list of clients and potential customers of the business, vendors, suppliers, and information other stakeholders of the business. While an NDA might prevent the recipient from disclosing such information to a third party, it would not prevent the recipient himself from using such information to sever the clients, employees, vendors, and other stakeholders of the Discloser. To prevent such scenarios, one may enter into a non-disclosure cum non-solicitation agreement.
FAQs
1. What is the purpose of a Non-disclosure and Non – solicitation agreement?
A non-solicitation agreement is a contract that restricts an individual (typically a former employee) from soliciting employees or customers after the employee’s departure from a business. A non-solicitation agreement can be in the form of an entire document or a clause in an employment contract.
2. What kind of information can be protected under an NDA?
While there is no certain law which states what information is considered confidential, the following have been held to be confidential information as per Indian courts:
3. When to sign a non-Disclosure Agreement?
There are various events or circumstances under which an NDA shall be entered into and signed. It is done to keep the information secured as per the terms of the non-disclosure agreement which are inserted to protect the proprietary information from being misused.
4. Are there any exceptions where the information covered by an NDA can be disclosed?
While there are no express exceptions to NDAs in law, in the following situations a person may disclose confidential information:
Where required by law or by a statutory authority.
Where the information has been disseminated into the public domain
5. How long does the Non-disclosure Agreement last?
There is no such specific time limit given on the duration of the Non-Disclosure Agreement. Generally, the Non-Disclosure Agreement is seen to extend over a period of 2 to 5 years. The corporates may also enter into a Non-Terminating Non-Disclosure Agreement to protect the trade secrets permanently. But, as soon as the ‘confidential information’ covered under the NDA becomes public, the Non-Disclosure Agreement has no effect, and it comes to an end.
6. How is a Non-Competition Agreement different from Non-Solicitation?
A non-competition agreement and a non-solicitation agreement are often regarded as the same thing. Non-solicitation clauses in employment contracts are also sometimes referred to as a “non-compete clause.” However, there are distinct differences between a non-compete agreement and a non-solicitation agreement. A non-competition agreement is used to prevent a former employee from working for another company in the same industry, one that would be a competitor of the employee’s previous employer, while a non-solicitation agreement is used to prevent the former employee from soliciting a former employer’s clients or staff.
Under the Information and Technology, Act 2000 (IT Act) read with the Information Technology (Intermediaries Guidelines) Rules, 2011, any person who on behalf of another person receives, stores or transmits any electronic information or data or provides any service including telecom service, internet service, web-hosting service, search engines, online payment sites, online-auction sites, online-market places (collectively intermediaries) is required to publish rules and regulations, privacy policy and user agreement on the Platform to inform the User the terms regarding the usage of the Platform.
The Terms of use are required on every website or application to govern their use and prevent any unauthorized use. The terms of use are in a way are an electronic contract between the website /application owner and their users for access and usage between the service provider and the user and is hence covered under the IT Act and is enforceable against both the user and the service provider.
FAQs
1. What should be covered under the terms of use?
While what should be covered under the terms of use depends mainly on the services being offered by the websites. However, in addition to those, rule 3(2) of the Information Technology (Intermediaries Guidelines) Rules, 2011 states that the terms of use must necessarily ensure that the service provider informs the user not to host, display, upload, modify, publish, transmit, update or share any information, related to the following:
2. Can a service provider terminate the access granted to a user on the basis of violation of the terms of use?
The terms of use are considered as a user agreement under the IT Act that allows the service provider to terminate the access or usage granted to the user. Further, rule 3(5) of the Information Technology (Intermediaries Guidelines) Rules, 2011 states that in case of non-compliance with rules and regulations, user agreement, or privacy policy for access or usage of intermediary computer resource, the service provider shall have the right to immediately terminate the access or usage rights of the users.
3. How are Terms of Use different from Terms of Service?
A Terms of Use agreement is the same as a Terms and Conditions or a Terms of Service agreement. These agreements have similar clauses, depending on the website, business model, industry, etc., but the name of the agreement can be named either a “Terms of Use” or a “Terms and Conditions.”
4. What should be included in the Terms of use agreement?
Terms of Use agreements include a clause to inform users that the company is not responsible for things such as
A privacy policy is a document contained on a website that explains how a website or organization will collect, store, protect, and utilize personal information provided by its users. It governs the collection of data (especially sensitive data like biometrics or financial information) from the user and the use of such data by the service provider (website, application, portal, platform, etc.) or its transfer to any third party, with the aim to protect the misuse of any information by the service provider/intermediary or any third party who has access to such information.
Under the Information Technology Act, 2000 read with rule 3 of the Information Technology (Intermediaries Guidelines) Rules, 2011, and rule 4 of the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011, any person who on behalf of another person receives, stores or transmits any electronic information or data or provides any service including telecom service, internet service, web-hosting service, search engines, online payment sites, online-auction sites, online-market places (collectively intermediaries) is required to have a privacy policy.
FAQs
1. Are privacy policies binding?
A privacy policy is a statutory requirement under the Information Technology Act, 2000 for every website and has a binding effect on the user. Further, Rule 5 of the Information Technology (Intermediaries Guidelines) Rules, 2011 authorizes the website to terminate the User's access in case of non-compliance with the User Agreement and Privacy Policy.
2. Can a service provider transfer data collected to another person?
Yes, a service provider may transfer the data to another person. However, the service provider should ensure that the transferee provides the same level of data protection that is provided by the service provider. Further, the transfer may be allowed only if it is necessary for the performance of the lawful contract between the service provider and the provider of information (user) or where the user has consented to data transfer.
3. Can a user withdraw the consent given to collect information or data provided?
Under rule 5(7) of the Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011, a user may withdraw the consent given to a service provider to collect information. However, on withdrawal of consent to collect information, the service provider may not be able to provide goods or services for which the information was collected.
4. Does a privacy policy prevent a service provider from disclosing services to government authorities?
A privacy policy only protects against disclosure of information to unauthorized third parties, however, rule 6 provides that the service provider may disclose the information to fulfill its legal obligations or by any order under the law for the time being in force.
5. What's the difference between a privacy notice and a privacy statement?
Privacy Notice is a statement made to a data subject that describes how the organization collects, uses, retains, and discloses personal information. A privacy notice is sometimes referred to as a privacy statement, a fair processing statement, or sometimes a privacy policy.
An influencer is any person who influences or affects the purchaser’s decision of purchasing a product/service. An influencer agreement is a type of agreement that is in between two parties i.e., the advertiser and the influencer. An advertiser is any person, marketer, company, campaign, or brand owner which takes the help of an influencer to promote its sale of products/ services. It is an agreement that outlines the details of your partnership with an influencer. In simple terms, an influencer agreement is a legal document that stipulates all modalities and terms of cooperation between a marketer and a content creator.
FAQs
1. How many types of influencer agreements are there?
This influencer agreement can be of two types-
In short term influencer agreement, the parties agree to the clauses of the contract for a specified product/service and for a specific time duration while in long term or an ongoing agreement the parties remain under the contract for a longer duration or may be permanently in some cases. This kind of agreement is more often used by big brand name owners and so their influencer remains the same for a long period.
2. Where can the influencer agreement be used?
This document can be used for a one-time campaign, where the advertiser hires the influencer to help with one specific campaign for a specific period, or for an ongoing relationship, where the influencer will promote the advertiser’s products or services over time.
3. What are the important terms to be included in an influencer agreement?
An influencer agreement must include all the terms and conditions required by each party during their professional relationship tenure. The influencer must promote the services and in return, an advertiser is bound for reasonable payment for the work of an influencer. So, an influencer agreement must include all the terms and conditions on which both parties have agreed upon.
A social media agreement is a legally binding agreement between a social media professional and their client. It describes exactly what social media services will be provided and protects the rights and interests of both parties. Many social media marketers and managers will work as independent contractors or freelancers for a business. This means that your contract will have to go into detail about the nature of your employment and all the requirements and responsibilities that come with it.
FAQs
1. Why do you need an agreement for social media management or marketing?
The digital world is constantly growing, and social media has distinguished itself as an important job in the field of marketing. And every important job needs a contract. Managing social media platforms, running campaigns, and establishing an online presence are just some of the challenging works you’ll do as a social media manager or marketer. Because of this, a contract is an assurance towards two main things:
2. What should be included in a social media management contract?
The digital world is constantly growing, and social media has distinguished itself as an important job in the field of marketing. And every important job needs a contract. Managing social media platforms, running campaigns, and establishing an online presence are just some of the challenging works you’ll do as a social media manager or marketer. Because of this, a contract is an assurance towards two main things:
Following are the things included in the social media management contract: -
Actors may star in a commercial, or as a supporting cast in a television serial, in a short film, or a YouTube or Netflix series. In all these formats, the role of the actor remains fairly consistent – to turn up to the set at the agreed time, and to act out the role presented to them. This is not very different from the regular office goer's mandate. But the contractual terms that an actor is subject to is not the same as that of any other employee.
FAQs
1. What is an actor's contract?
A standard actor contract is a written agreement of employment between an actor and the client or employer or producer.
2. What is a movie contract?
Film Contract means contracts with suppliers that convey the right to broadcast specified films, videotape motion pictures, syndicated television programs or sports or other programming.
A services agreement is a written contract between a service provider and a client. Also known as a service contract or a general services agreement, this document is legally binding and provides some level of protection for both the provider and the client.
This type of contract lists the services that the provider will perform and details the time frame and compensation for the project. Most service contracts also list the rights and requirements of both parties, including liabilities and confidentiality guidelines. Many also discuss dispute resolution in case either party breaches the contract.
FAQs
1. What is the purpose of a service agreement?
Service agreements are contracts between a customer or client and the person or business providing the service. It defines the relationship, the responsibilities of each party, the compensation or payment and the services that will be provided, among other things.
2. Is a service agreement binding?
A services agreement is a written contract between a service provider and a client. Also known as a service contract or a general services agreement, this document is legally binding and provides some level of protection for both the provider and the client.
3. Can you cancel a service agreement?
A service agreement can be canceled at anytime. The party who cancels the agreement will be liable for all costs associated with the cancellation. The cancellation must be executed in accordance with the terms of the contract or it can be considered a broken contract or breach of contract.
A vendor contract (otherwise known as a vendor agreement) is a business contract between two parties covering the exchange of goods or services in return for compensation. Vendor contracts establish the business relationship conditions and include details on each party's obligations under the contract.
The purpose of a vendor contract is to allow all parties involved to understand what is expected in terms of deliverables, payment, etc. during an exchange of goods or services and the consequences if those expectations are not met. Companies are also better able to mitigate their risks by negotiating vendor contracts at the start of any business/vendor partnership.
1. What Is a Vendor?
A vendor is a party in the supply chain that makes goods and services available to companies or consumers. The term "vendor" is typically used to describe the entity that is paid for goods that are provided, rather than the manufacturer of the goods itself. However, it is possible for a vendor to operate as both a supplier (or seller) of goods and a manufacturer.
2. Why are vendor agreements important?
The primary importance of vendor contracts is that they define what each party owes the other. Vendor contracts contain the details of a project, including what must be accomplished, when it must be completed, and how much it's going to cost.
3. What are vendor disputes?
Most vendor disputes are ruled by a specific contract or supply agreement. These contracts generally provide for the terms and conditions of the relationship between the buyer and supplier.
A refund policy is a document that outlines the rules for getting refunds for purchased goods and services. A refund policy often details the eligibility requirements for refunds, types of refunds given, the refund timeframe, and the return process. It is a policy that dictates the terms of any refunds or returns which may be offered by the website or eCommerce store. The term Cancellation Clause refers to the terms mentioned in the contract, in which it is stated that under which terms a cancellation can occur. It is not a negotiated contract - in other words, there are not two sides to this document.
FAQs
1. What is the need of a Refund Policy?
While the privacy policy agreement is the only one that is required to be put on display by the law, the terms and conditions agreement and return and cancellation policies are optional. If clear return policy for an item is visible to people, it will be easier for them to make an informed buying decision. It’s easier to convince someone to make a purchase when they have all their questions answered, including those regarding refunds. A refund policy can also protect your interests by helping you to play it safe on the legal side.
2. What to include in a Refund policy?
A refund policy should be broken down into smaller sections, this increases the readability of the document, it makes easier for customers to find what they need.
A refund/return policy should usually contain these three sections:
3. Who should have a refund policy?
Every retailer should provide a Refund Policy. This includes companies selling:
Basically, if someone pays for anything, they have a right to know what happens if they're unhappy with what they get.
4. Are Refund Policies legally binding?
Yes, they are legally binding. Refund Policies are, essentially, legally enforceable contractual terms between you and the customer. These terms are only enforceable if they are clearly set out, agreed to by the customer, fair and reasonable and lawful i.e., a contract is not entered for any illegal activity.
A loan agreement is a legal contract between a borrower and a lender regulating the mutual promises made by each party. It is a formal document that evidences a loan. An agreement is a legal document and a written promise to repay the money that is described by the Agreement between the lender and the borrower. This document is used to record the terms between the parties including the method and amount of repayment of the loan and also the penalty in case of default of such payment.
FAQs
1. Why is a Loan Agreement required?
A loan agreement is required in order to determine the terms and conditions between the lender and borrower. The agreement is binding on both parties. It is an important step as all the rights and liabilities of the parties are stated clearly and thus avoid future legal trouble and confusion. Its main purpose is to serve as written evidence of the amount of a debt, the terms under which the loan money shall be repaid - including the rate of interest if involved. It is a legal document and is enforceable in the Court of law.
2. What are the documents required for the Loan Agreement?
There are no specific documents required for the drafting and execution of a loan agreement. However, if there is security involved - papers evidencing the same would be required. Other than this, ID proofs of the parties in order to confirm the names and permanent addresses of the lender and borrower shall be scrutinized.
3. What are the legal considerations for a Loan Agreement?
A loan agreement is a legal document that includes clauses stating the terms and conditions between the parties. It needs to be printed on a judicial / e-stamp paper of the correct value and signed by both parties. It can be modified or amended as per the terms of the agreement.
Website disclaimers is legal notice covering some of the key legal issues that arise out of the operation of a website. It also include statements made by the owners of the website informing them about the risks associated with the use of the website and for limiting their liability. The disclaimer incorporates a license setting out the basis upon which a website may be used and a set of limitations of liability. It also helps website operators to comply with information disclosure laws. The disclaimer is a shorter version of our website terms and conditions template.
FAQs
1. Are websites necessarily required to have a website disclaimer?
The website disclaimers are not necessarily required under law, however, it is important to provide the disclaimer where there are chances that the website may be used in a manner it is not intended to be used.
2. Are website disclaimers binding on a user of the website?
Under section 10A of the Information Technology Act, 2000 wherein a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form such contract shall be enforceable provided it meets the requirements of a contract under the Contract Act, 1872. Therefore, it stands to reason that disclaimers may validly bind the users of a website.
3. Are privacy policy and website disclaimer the same?
A disclaimer is a statement made on the website for limiting the liability arising from its use, however, Privacy Policy is a statutory requirement under the Information Technology Act, 2000 which deals with the regulation, collection, and safeguarding of personal information collected by a website.
4. Why do you need a Disclaimer?
A disclaimer protects the rights over an intellectual property against infringement by other people. Assuming that the work is literary or artistic in nature, a disclaimer can contain a claim of ownership over the copyright of your content.
Since it serves as both a warning and a way to mitigate risks, a disclaimer protects from liability. Anyone who reads the disclaimer should understand the risks involved in using your website or acting upon the information in it.
Website disclaimers is legal notice covering some of the key legal issues that arise out of the operation of a website. It also includes statements made by the owners of the website informing them about the risks associated with the use of the website and for limiting their liability. The disclaimer incorporates a license setting out the basis upon which a website may be used and a set of limitations of liability. It also helps website operators to comply with information disclosure laws. The disclaimer is a shorter version of our website terms and conditions template.
FAQs
1. Are websites necessarily required to have a website disclaimer?
The website disclaimers are not necessarily required under law, however, it is important to provide the disclaimer where there are chances that the website may be used in a manner it is not intended to be used.
2. Are website disclaimers binding on a user of the website?
Under section 10A of the Information Technology Act, 2000 wherein a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form such contract shall be enforceable provided it meets the requirements of a contract under the Contract Act, 1872. Therefore, it stands to reason that disclaimers may validly bind the users of a website.
3. Are privacy policy and website disclaimer the same?
A disclaimer is a statement made on the website for limiting the liability arising from its use, however, Privacy Policy is a statutory requirement under the Information Technology Act, 2000 which deals with the regulation, collection, and safeguarding of personal information collected by a website.
4. Why do you need a Disclaimer?
A disclaimer protects the rights over an intellectual property against infringement by other people. Assuming that the work is literary or artistic in nature, a disclaimer can contain a claim of ownership over the copyright of your content.
Since it serves as both a warning and a way to mitigate risks, a disclaimer protects from liability. Anyone who reads the disclaimer should understand the risks involved in using your website or acting upon the information in it.
A shipping policy is a concise document or webpage that outlines important information around shipping when an order is placed online. It often includes details on shipping costs and methods, delivery times, and more.
Some shipping policies are more detailed than others, but overall it should be clear, accurate, and easy to understand. Many times, additional information like a returns and exchange policy is also included, creating a comprehensive resource for customers before they purchase.
FAQs
1. What should be included in a shipping policy?
A shipping policy is a document that outlines important shipping information such as costs, methods, delivery times, and return policies. This document should be easily accessible to your customers, so it's best to dedicate a page on your website to it, and ensure that it's prominently visible.
2. Why is shipping policy important?
A well-thought-out shipping policy not only helps you proactively set the right expectations around shipping times and costs, but it also becomes an asset whenever customers come with questions about their orders.
3. Is a shipping policy required?
A Shipping Policy is not legally required, but having one comes with a number of benefits for both you and your customers. Some benefits are that people will be more likely to shop with you if you have a clear Shipping Policy in place since there won't be any questions about your shipping timeframes or processes.
Trademarks as per the Trademark Act of 1999 are specific symbols, signs, colors, marks etc, which are capable of being represented graphically and which are capable of distinguishing the goods or services of one person from those of others. In a highly competitive demand driven market, it is quiet important that a business person is able to distinguish his or her products and services from the other similar products and services, that’s where business develop their trademark. One most common example of a type trademark is a brand name, which becomes synonymous to the product they deal in or the sector in which it works, like Microsoft or Android is synonymous to operating systems or Uber to mobile taxis.
One way to regulate the use and allow authorization of use of trade mark is through a trademark license agreement. A trademark license agreement is an instrument granting limited rights to the licensee in relation to the use of the trademark. Trademark license agreements become important where businesses allow a person to represent them or sell their products, as the trademark is required to aid in the business but at the same time the scope of use by the licensee is to be limited to work in the best interests of the business.
FAQs
1. How many types of users of trademark are recognized under the Trade Marks Act of 1999?
Under the Trade Marks Act the users of the trademark are required to fall within the following category:
2. What are the implications of getting a trademark license agreement registered with the registrar of trademarks?
The following implications arise on registration of a trademark license agreement:
3. What is the importance of a trademark license agreement?
Under the Trade Marks Act section 49 mandates that at the time of registration as a registered user, the proprietor of the trademark and the registered user are required to provide an agreement (often a trademark license agreement) in writing to the registrar of trademarks, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the trade mark.
Further for a person who does not wish to be a registered user, shall, to fall within the category of a permitted user under section 2(1)(r)(ii) use the trademark with consent of such registered proprietor in a written agreement (often a trademark license agreement).
4. What is the penalty of using a trademark without a trademark license agreement?
A person who uses a registered trademark without entering into a trademark license agreement may be liable for falsely using a trademark and maybe punished under section 103 of the Trade Marks Act, with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees.
A software development agreement is an instrument by which business and the software developer come to common understanding as to the specifications and functionality of the software, further it sets out the ownership of the software clearly thereby protecting the business from use of their business model. Therefore, it is very important for business to protect their business models and trade secrets, which might be incorporated in a software program, through a software development agreement.
FAQs
1. What all should be incorporated in a software development agreement?
A few clauses that require special attention in a software development agreement are:
2. Which laws regulate software development agreements?
Website development agreements are governed by
3. Does entering into a software development agreement automatically transfer ownership of the software program?
Entering into software development agreement doesn’t automatically grant ownership over the software program. It is however in the best interests of the client that the contract stipulates for the transfer of ownership to the client. However, the software developer may exercise lien over the software till the payment of the consideration.
4. How long do warranties last in software development agreements?
Warranties of software performance are typical in many contracts, in wihch the developer promises that the software will work the way the developer said it would and will fix it free of charge if it doesn't. Such warranties typically last from 90 days to one year after the software is delivered.
A training Contract is an agreement between a trainer and a client regarding fitness and exercise services the former will provide. It records the training sessions policy, their schedule and cost, fitness goals, and other information that defines a trainer-client relationship.
If you've started a fitness business you're going to need personal trainer forms. The essential documents required to both run a profitable business and manage your clients effectively.
FAQs
1. What should be included in a training contract?
A simple contract for trainers and clients. Sections outlining training schedule, sessions included general terms and more. Created (and approved) by legal experts.
2. What information does a personal trainer need?
In general, there are six key personal trainer questions to ask new clients before you think about scheduling them for their first workout session.
Work from home policy ensures that working from home is beneficial to the employee and the company. This policy allows employees to maintain a healthy work-life balance and improve employee productivity.
The work from home policy applies to all our employees who prefer working from home in times of need. However, an employee’s working from home request will be considered on a case by case basis. Approval of work from home request is based on job duties, prior performance, and productivity.
1. What should be included in a work from home policy?
2. What is the purpose of work from home policy?
It allows your employees to take care of themselves and still get the work done. In simple terms, working from home gives them the flexibility to set their own routine. It enables them to take care of their sick kids or run errands without taking a full day leave from office.
A membership agreement is a contract between your business and users or customers to outline the expectations for both parties. The specifics of the agreement depend on the type of business or service you offer and how you expect users to interact. The membership agreement should cover all the specifics for items such as restrictions, fees, obligations, privacy, and liability claim exemptions to protect you as the business owner.
A Membership Agreement is a pretty common document by which one party, the member, becomes a regular patron of the other party, the group, or the organization. For anyone that's ever joined a gym, it's likely a Membership Agreement has been at the heart of the parties' relationship.
1. What is the membership policy?
Membership Policy means a life insurance policy for an amount, the monthly premium of which is equivalent to two, five, or six per centum of an employee's monthly salary or compensation.
This employment agreement is between a Company and an employee that will deliver the Company’s products directly to the consumers. This agreement contains terms specific to a delivery job, such as the employee’s delivery duties, the employee’s driver’s license state, the maximum permitted points on the employee’s driving record, and more. This agreement is ideal for individuals or small businesses that want to hire an employee to deliver products directly to consumers.
1. What are the duties and responsibilities of the delivery boy?
2. What are the delivery boy qualification and skills
3. How the expenses are borne in delivery Jobs?
Expenses are to be borne by Company but if the expenses are borne by the Delivery person in that case the expenses are reimbursed by the Company.
An annual maintenance agreement is an agreement with a service provider for the repair and maintenance of property used by your company. The service can be of any property owned by your company from the large manufacturing machines creating your products down to the computers and printers used in your offices. It can also include service to the building, the land, parking lots, etc. A company that cares about improving day-to-day operations should have an annual maintenance agreement in order to ensure the quality of products and processes.
FAQs
1. What all should be incorporated in an annual maintenance agreement?
A few clauses that are required to be mentioned in an annual maintenance agreement are:
2. What is the purpose of a maintenance agreement?
Maintenance agreements provide routine maintenance, access to emergency repairs, and constant upgrades to the software and your system's hardware. More importantly, the agreement makes you a priority and allows you to build a relationship with your maintenance provider
3. Why is an annual maintenance contract important?
A maintenance contract ensures that, no matter what the time or what the situation; you will have an expert available to resolve the problem. This provides a safeguard that in-house staff may not be able to offer, since it is often not cost-effective to maintain round-the-clock expertise for every issue that arises.
“Outsourcing agreement is an agreement between a business and a service provider in which the service provider promises to provide necessary services. Such services include data processing and information management, using its own staff and equipment, and usually at its own facilities.
A good outsourcing agreement is one that provides a comprehensive road map of the duties and obligations of both the parties – outsourcer and service provider. It thus minimizes complications in case a dispute arises. But the irony is many times people neglect to pay attention while drafting an outsourcing agreement.
1. What are the three types of outsourcing contracts?
The three primary types of relationship-based software outsourcing: Staff augmentation outsourcing, managed team outsourcing, and project-based outsourcing.
2. What are the advantages of outsourcing your work?
The advantages of outsourcing the work are:-
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