An Agreement is a promise or set of promises i.e. the consideration for each other is an agreement. Broadly speaking these are for:
- Sale/Purchase of goods and services
- Contractual execution of work
- Investments; Shareholders’ Agreement, Partnership, Joint Venture, Business buy-out, etc.
- Business; distributorship, agency, outsourcing, supply, franchise etc.
- Any other matter
Only a legally binding agreement is a contract. The Contract Act, 1872 deals with the legal requirements of a valid contract, which is applicable upon all types of agreements. However, every agreement also contains provisions of the relevant laws considering the nature of the transaction.
A well-drafted Agreement works not only as deterrence for a party to comply with his contractual obligations, but also helps in obtaining the desired reliefs from the court of law, in case of a dispute.
We assist our clients by drafting or reviewing various agreements to check that it:
- Is legally valid.
- Covers the intentions as well as operational and commercial considerations of a contract.
- Contains clauses for Taxes, i.e. Income Tax and if applicable Provincial Sales Tax on Services as the price, fee, rates etc. are agreed between the parties and these are generally mentioned in the agreements.
- Covers provisions of the relevant laws.
We also help our client in properly understanding the agreements, by highlighting their obligations, financial exposures, etc. of the client as well provide appropriate advices in relation to an agreement.