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As per section 13 All the partners are entitled for equal share in loss & profit in the absence of Agreement. Since Agreement is there and clauses are reasonable so terms and condition are sufficient. Section 58 tells about the process of the registration of Partnership Firm. The fee for registration under section 58 is INR 500, so only an INR 50 ...
W Network
caHello, I Person 'A’ is planning to do partnership for the period of 5 years with Person B with following terms and conditions, let me know if this is feasible and procedure.
(1) Person ‘A’ will give 5 lakh to Person ‘B’ to invest in XYZ business for the period of 5 years. (2) Person ‘A’ will give fixed profit of INR 15K per month for 1st year. This pay will be increased to INR 17k in 2nd year, INR 19K in 3rd year, INR 21K in 4th year and INR 23K in 5th year. Apart from that, whatever profit made will be taken by Person ‘A’. (3) If Person ‘B’ wanted to break this partnership anytime within 5 years, he has to pay back INR 10L to person ‘A’. (4) If Person ‘A’ wanted to break this partnership anytime within 5 years, he will not get anything back from person ‘B’. (5) After the end of 5 years, Person ‘B’ will give back person ‘A’ INR 4 L (6) After the end of 5 years, revised contract with new terms and conditions will be made based on mutual consent of Person ‘A’ and ‘B’. I will write these terms and conditions on INR 50 stamp paper and will also get it registered. Now my Question is, do these terms and conditions suffice? In case of any disputes- would this registered stamp paper is admissible in court? Kindly suggest?
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W Network
caAs per section 13 All the partners are entitled for equal share in loss & profit in the absence of Agreement. Since Agreement is there and clauses are reasonable so terms and condition are sufficient. Section 58 tells about the process of the registration of Partnership Firm. The fee for registration under section 58 is INR 500, so only an INR 50 Stamp Paper will not be admissible in Court.
'Get a Wazzeer' to have your partnership drafted seamlessly in 7 working days.
over 3 years ago
View answer
Hello, I Person 'A’ is planning to do partnership for the period of 5 years with Person B with following terms and conditions, let me know if this is feasible and procedure.
(1) Person ‘A’ will give 5 lakh to Person ‘B’ to invest in XYZ business for the period of 5 years. (2) Person ‘A’ will give fixed profit of INR 15K per month for 1st year. This pay will be increased to INR 17k in 2nd year, INR 19K in 3rd year, INR 21K in 4th year and INR 23K in 5th year. Apart from that, whatever profit made will be taken by Person ‘A’. (3) If Person ‘B’ wanted to break this partnership anytime within 5 years, he has to pay back INR 10L to person ‘A’. (4) If Person ‘A’ wanted to break this partnership anytime within 5 years, he will not get anything back from person ‘B’. (5) After the end of 5 years, Person ‘B’ will give back person ‘A’ INR 4 L (6) After the end of 5 years, revised contract with new terms and conditions will be made based on mutual consent of Person ‘A’ and ‘B’. I will write these terms and conditions on INR 50 stamp paper and will also get it registered. Now my Question is, do these terms and conditions suffice? In case of any disputes- would this registered stamp paper is admissible in court? Kindly suggest?
-
W Network
caAs per section 13 All the partners are entitled for equal share in loss & profit in the absence of Agreement. Since Agreement is there and clauses are reasonable so terms and condition are sufficient. Section 58 tells about the process of the registration of Partnership Firm. The fee for registration under section 58 is INR 500, so only an INR 50 Stamp Paper will not be admissible in Court.
'Get a Wazzeer' to have your partnership drafted seamlessly in 7 working days.
over 3 years ago
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