A rental contract is a legal document which is entered between two parties where one of them takes an asset of another party on rent for a fixed period of time and for a fixed amount of money. These types of contracts can be made for renting various assets like, house, office, car, hardware, equipment and others. The parties in these types of contracts include the owner of the asset who is known as the Landlord [in case of property renting]/ Owner and the person who takes these assets on rent who is known as the Tenant. In case of any dispute between the parties, these contracts act as legal evidence. Various factors which need to be considered while drafting a rental contract are as follows:
Points to be considered while preparing a rental contract:
- The rental contract should cover list of all the services, appliances, equipment and facilities provided by the owner to the tenant.
- The date for paying each month’s rent and other specifications, like percentage that should be paid by tenant in case of repair, and any wear and tear in the rented facility should also be mentioned in the contract.
- Duration of notice period that should be served before unscheduled termination of contract should be mentioned.
- The contract should mention the complete details including the name, contact details and address of the owner as well as the tenant.
- The rights and responsibilities of both the parties of the rental contract is an essential requirement. Henceforth the compliance to the rental contract would be guided under the written clauses in the rental contract agreement.
- The terms on which the contract can be terminated should also be mentioned.
- If any special care or requirement is needed by either of the parties, their details should be provided in the contract.
A purchase contract is a legal document which is signed between two parties when one of them known as Purchaser purchases some asset from another party known as the Seller. The purchase contract can be made for various different types of assets like property, equipments, hardware or others. These types of contracts helps to know the details of the parties and various terms and conditions agreed between them. If the amount of purchase is paid in instalment then the details of the same should also mentioned in the contract. While drafting a purchase contract, following factors should be considered
Points to be considered while preparing a purchase contract:
- The complete details of the property or any other asset which is being purchased should be mentioned in the contract.
- The property or product should be categorised into specific details so that in case of discrepancy, the purchase contract can provide the exact information on the type of property or product taken for purchase.
- The full name, details and address of the parties involved should be mentioned in the contract.
- The amount and terms of purchase should also be made part of the purchase contract. This is because the party selling the property can make alterations in the original amount or agreed terms.
- If there are any witnesses in the event of negotiating and signing the purchase contract then their details should also be a part of the agreement.
- If there are any special words used, then their definition should be clearly and precisely defined so that there is no space left for misusing the usage of the terms specified in the purchase contract.
- The effective date of possession and if payment is made in parts, then its detailing of the same should be a part of the purchase contract.
A partnership contract is a legal document which is entered between two or more than two individuals or organisation when they wish to enter into a partnership agreement. These types of contracts can be drafted for various different types of partnerships and depending on this the terms and conditions are also framed. A partnership contract helps various parties to put down various terms and conditions of working so that there is dispute later on. In case of any dispute among the partners, these contracts act as written evidence.
Points to be considered while preparing a partnership contract:
- The name of the business organisation, and the working office details should be included in the partnership contract.
- While entering in a partnership contract, the duration for which contract is signed and the termination clause should be included.
- One of the mandatory points is that capital used for establishing the business should be mentioned in the contract. Also specify the contributor of the capital along with the amount contributed.
- This contract should also include the ratio of division of profits and losses between the partners. The salary and withdrawal specifications should stand out clearly in the contract.
- The division of duties of both the partners should be included within the contract and the legal actions which can be taken, in case one is found not to be performing his or her share of duties.
- One of the important segments of such contracts is that, which issues can lead to the dissolving of partnership and then how would the capital and infrastructure be divided between the partners.
- The effective date from which the partnership contract would come into force is also to be mentioned which would be considered as the date of initiation of new business activities. Finally in the end, the signatures of both the parties should be included.
A management contract is a legal document which binds together two business firms as parties where one party outsources its managerial functions of a single or multiple departments to the other party. This contract is signed between two parties for a specific time period and then it can be renewed with the consent of both the parties. This kind of contract highlights the terms and conditions of the contract like, the time duration of the contract, the services expected from the other party, and its managerial role. Following are some points which should be considered while signing such documents:
Points to be kept in mind while preparing a management contract:
- The contract should clearly specify the contract duration and the termination clauses.
- One of the mandatory requirements is the date and place of the agreement of the management contract, along with the representatives of both the parties.
- The management contract should mention that any of the parties are free to terminate the contract in case of breach or treachery.
- The management contract should also include the legal actions that can be taken by the contractor company, in case of any delays or blockage of payments due.
- The methodologies which the contractor company will follow should be approved by the customer organisation and Contractor Company should be held responsible for any loss or damage during its managerial activities.
- The rights and responsibilities of both the parties of the management contract is an essential requirement. Henceforth the compliance to the management contract would be guided under the written clauses in the management contract agreement.
- One of the important segments of the management contracts is the specification of the fields in which the management contract should be applicable and field in which applying the management contract can be termed as violation the contract.
A maintenance contract is a formal contract between two parties where one party hires the other party as contractor to provide a periodic maintenance service to buildings, equipment or any other asset. This contract is a simple agreement which binds together both the parties entering into a maintenance agreement with clauses pertaining to the maintenance like which would be the key areas that will be covered in the maintenance and to what level the services will be provided. Following points should be considered while designing a maintenance contract:
Points to be kept in mind while preparing a maintenance contract:
- To enter in the maintenance contract, the schedule for periodic visits for the preventive maintenance should be fixed and specifications for emergency maintenance calls should also be finalised.
- The property or product to be maintained should be categorised into specific details so that in case of discrepancy, the maintenance contract can provide the exact information on the type of property or product taken for maintenance and level to which preventive & repair services will be provided.
- The contractor involved in the contract with his/her names, addresses, and contact numbers should be mentioned in the maintenance contract.
- The terms of ending the maintenance agreement should also be made part of the maintenance contract.
- The lucid purpose of repair calls that services should be given in order to correct the malfunction of the equipment or property should be mentioned with clear specifications.
- If there are any witnesses in the event of negotiating and signing the maintenance contract then their details should also be a part of the agreement.
- All the equipment and accessories which come under the scope of this maintenance contract should be listed in the contract, along with warranty if offered, on the repaired equipment.
- All the repairing facility like space, power source should be provided by customer other than the repairing tools.