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You can ensure guarantee of the advance payment and quality of various spare parts and necessary specification of the machine by signing the Sale and Purchase Agreement (SPA) for this you can hire a lawyer who will help you in drafting the agreement and get it stamped appropriately as per the Indian Stamp Act, 1899. To keep yourself in the safer side ...
Wazzeer Professional Network
ProfessionalI am going start a manufacturing business. The plant and machinery for the enterprise need to be bought from Gujarat. The cost of the plant is around 20 lacs. The primary condition of the maker is that the 50% of the total cost need to be paid in advance by Bank Draft and delivery period is 2 months. I am in doubt on two points 1. If the quality of the plant is compromised on like various spare parts and necessary specification of the machine, 2. How do I ensure guarantee of my advance payment not being cheated with. Please advise.
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Wazzeer Professional Network
ProfessionalYou can ensure guarantee of the advance payment and quality of various spare parts and necessary specification of the machine by signing the Sale and Purchase Agreement (SPA) for this you can hire a lawyer who will help you in drafting the agreement and get it stamped appropriately as per the Indian Stamp Act, 1899. To keep yourself in the safer side you can incorporate the following clauses in the SPA.
- Key Transaction
- Conditions Precedent
- Representation and Warranties
- Indemnity
- Mode of Payment
- Obligation of the Parties
- Breach of Agreement
- Quality Standard
- Warranty
- Governing laws and Jurisdiction
The SPA will be signed by both the parties and you can safeguard yourself from all the future losses, if occurred. Check the appropriate rate of depreciation on the plant for correct accounting compliance. In the clause “Mode of Payment” write the Bank Draft number so that in the agreement there will be proof that you have made payment through Bank draft for this specific transaction which (i.e. purchase of machinery)
In the clause “Quality Standard” state the quality which have been promised by the seller. Also, state “if in case the seller unable to fulfill the promised standard then in that case he will replace that part of the machinery without any extra charges”. Further, under the clause “Warranty” the seller will ensure that the machine will manufacture certain amount of product in a year and there will be no technical issue in the machinery for certain period, in case of non-performance or under performance then the seller has right to get the machine replaced.
'Get a Wazzeer' to have a sector expert deliver the right support for your venture seamlessly.
over 4 years ago
View answer
I am going start a manufacturing business. The plant and machinery for the enterprise need to be bought from Gujarat. The cost of the plant is around 20 lacs. The primary condition of the maker is that the 50% of the total cost need to be paid in advance by Bank Draft and delivery period is 2 months. I am in doubt on two points 1. If the quality of the plant is compromised on like various spare parts and necessary specification of the machine, 2. How do I ensure guarantee of my advance payment not being cheated with. Please advise.
-
Wazzeer Professional Network
ProfessionalYou can ensure guarantee of the advance payment and quality of various spare parts and necessary specification of the machine by signing the Sale and Purchase Agreement (SPA) for this you can hire a lawyer who will help you in drafting the agreement and get it stamped appropriately as per the Indian Stamp Act, 1899. To keep yourself in the safer side you can incorporate the following clauses in the SPA.
- Key Transaction
- Conditions Precedent
- Representation and Warranties
- Indemnity
- Mode of Payment
- Obligation of the Parties
- Breach of Agreement
- Quality Standard
- Warranty
- Governing laws and Jurisdiction
The SPA will be signed by both the parties and you can safeguard yourself from all the future losses, if occurred. Check the appropriate rate of depreciation on the plant for correct accounting compliance. In the clause “Mode of Payment” write the Bank Draft number so that in the agreement there will be proof that you have made payment through Bank draft for this specific transaction which (i.e. purchase of machinery)
In the clause “Quality Standard” state the quality which have been promised by the seller. Also, state “if in case the seller unable to fulfill the promised standard then in that case he will replace that part of the machinery without any extra charges”. Further, under the clause “Warranty” the seller will ensure that the machine will manufacture certain amount of product in a year and there will be no technical issue in the machinery for certain period, in case of non-performance or under performance then the seller has right to get the machine replaced.
'Get a Wazzeer' to have a sector expert deliver the right support for your venture seamlessly.
over 4 years ago
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