Monthly Archives: June 2013

A personal investment contract is one that is entered into by an individual investor with a company for making personal investments. These types of contracts include the details of the parties involved and the terms and conditions agreed between them.

Sample Personal Investment Contract

This agreement of personal investment is entered into between ABC Investment Limited hereafter known as “Financial Company” and Mr. Jacob Anthony hereafter known as investor on the 5th of March 2013 wherein the investor agrees to invest an amount of 15000 pounds into the financial company.

Recitals of the Personal Investment contract :

  • The contract of personal investment between the parties is effective from the 10th of March 2013.
  • The investor is willing to invest an amount of 10000 pounds with the company for an annual interest accruable at the rate of 18% per annum which is payable quarterly by the company directly into the bank account of the investor.
  • The financial company agrees to guarantee the principal amount invested by the company and promises to pay a penalty of 1% per month in case of not refunding the investment to the investor on maturity.
  • The investment made by the investor in the financial company is locked in for a term period of three years after which the investor can withdraw the amount without any penalty. When the investor withdraws the amount invested within a period of three years there is a penalty of 1% applicable on the principal amount calculated on actuarial basis on the time frame remaining.
  • The financial company is required to provide investment certificate to the investor within fifteen days of receipt of the investment amount without fail. In the event of non-compliance with this clause tenders the investor to seek legal remedy as necessary.
  • The civil court of Kent will govern the terms specified in this investment contract and any dispute should be taken to the appropriate court in the state of Kent only.

Signature of the Financial Company representative: ___________

Signature of the Investor: ________________

Date: _______________________

A foreign investment contract is one that is a cross border investment wherein the investor and the asset holding company belong to two different countries. The foreign investment contract helps to protect the interests of both the parties by specifying the terms of the contract in a clear manner well in advance.

Sample Foreign Investment Contracts

The foreign investment contract is entered on 6th of May, 2012  between the two parties namely Gordon Inc and Innosa Associates wherein the first party is the investing company and the second company is the asset company. The various clauses of this contract are detailed in the articles given below :-

Article 1 – the investor company will invest the amount of money in pounds which is the accepted currency in the country of the asset company.

Article 2 – the investor company agrees to make the investment within a period of thirty days from the date of this contract through wire transfer to the bank account of the asset company.

Article 3 – the amount transfer shall not be the upfront investment made by the investor company as there is deduction of currency conversion and fess for allocation of investment made by the investor company.

Article 4 – the asset company agrees to adhere to the clause of non-investment in prohibited trades as specified by the foreign investment treaties between both the countries.

Article 5 – the investor company shall be wholly responsible for seeking approval from the government for making foreign investment and does not hold the asset company responsible in any way for the same.

Article 6 – the asset company shall allocate the stocks to the investor company within the time specified in this contract. The asset company liable to be prosecuted for non-issuance of stock certificate to the investing company within thirty days of receipt of investment amount.

Article 7 – all disputes between the two companies belonging to the different countries shall be resolved in the international civil court only.

Signature of both the parties is provided below:

Signature of the Investor: _______________________

Signature of the Asset Company: __________________

Municipal guaranteed investment contracts are ones that are entered into between an investor and the government. The municipal bonds are investments guaranteed by the government and considered to be safe investments. These municipal guaranteed investments carry a fixed rate of returns on the investment. The contract provides for all the terms of the investment for the contract to be valid and effective.

Sample Municipal-Guaranteed Investment Contracts

This contract of municipal guaranteed investment is guaranteed, authorized and delivered by the government of America which is a legal and valid secured investment in bonds in favor of Mr. George Thomas hereafter known as investor on this 20th day of August 2012. The various terms of the contract are:-

  • The government of America guarantees the payment of the principal amount invested by the investor against any bankruptcy, insolvency, reorganization, moratorium and similar issues affecting the investment.
  • The investment in municipal guaranteed investment shall be for a period of not less than twenty years and thereafter renewable by the investor for another period of ten years.
  • The investment would carry a fixed rate of return at the rate of 7% per annum wherein the interest is payable monthly to the investor through direct bank transfer.
  • The investor is not permitted to withdraw part or whole sum of investment made in the municipal guaranteed investment at any point of time before the expiry of the specified time frame of the investment.
  • The investor is permitted to obtain a loan against the municipal guaranteed investment with a financial company by mortgaging the investment certificate.
  • The investment in the municipal guaranteed investment is not transferable to any person other than the one in whose name it is obtained except in situation of transfer to the nominee in the event of death of the primary investor.
  • The investor is eligible to apply for tax concession for investing in the municipal guaranteed investments and also will be issued tax certificate for the investment and the interest accrued.

Signature of the Investor: _____________

Signature of the Bonds issuing authority: ___________________

The Kentucky Fried Chicken Franchise contract is one that is entered into between the YUM Brands Inc and another company that wishes to open an outlet of Kentucky fried chicken. The contract of franchise provides terms and condition necessary for taking up the franchise of the parent company.

Sample Kentucky Fried Chicken Franchise Contracts

This contract is entered on 8th January, 2013 between YUM Brands Inc known as KFC hereafter and M/s Robert Dinero Restaurants hereafter known as franchisee who enter into this contract for opening KFC outlet at Newark, Nottinghamshire, London.

The recitals of the contract are read as below :-

  • The contract provides license to the franchisee to open an outlet of KFC wherein the special menu items and recipes will be shared with the franchisee.
  • The parent company KFC provides financial assistance to the franchisee for construction of entire outlet which is fit for running the fast food outlet.
  • The KFC provides training and assistance by conducting programs and workshops that are required to be attended by the franchisee employees and kitchen staff mandatorily.
  • The franchisee agrees not to share the recipes or any trade secrets of KFC with any other third party before or after the existence of the franchise with the parent company.
  • The contract of franchise is initially provided for a period of twenty years and renewable on mutually agreed terms thereafter.
  • The franchisee should ensure to run the KFC outlet with hiring full time employees in the outlet who are capable of managing it efficiently.
  • The franchisee agrees to pay a royalty fee of $1, 00,000 for obtaining the license of the franchise along with 5% of the gross revenues generated from the sales at the outlet.
  • The parent company KFC is not responsible for any sales campaigns or improving revenue for the franchisee outlet in any manner.

Signatures of the parties are provided below:

Signature of KFC representative: _______________________

Signature of Franchisee representative: __________________

McDonalds Franchise Contract is one that provides a business opportunity to an individual or an organization who wishes to open a McDonald’s outlet. The franchise contract provides all the terms specified by the parent company that needs to be agreed by the franchisee in order to have validity for the contract. It is on account of the franchise contract that the other company gets the license to sell the products under the name of the parent company.

Sample McDonalds Franchise Contracts

This contract of franchise agreement is signed on 7th May, 2012 between McDonald’s restaurants and Oak Brook Hospitality Company.

Interpretation of contract :-

  • The license issued to the franchise is one that includes the comprehensive restaurant system followed by the parent company along with proprietary food recipes, beverages and inventory methodology.
  • The franchise is provided to the franchise company on the basis of the trust and relationship that both the companies enjoy.
  • The franchise company is required to pay $20,000 as one time franchise fee and a minimum of 3% of the revenue that is generated by the franchise restaurant each month to the parent company.
  • The franchise agrees to abide by the standards and intellectual property rights according to the standards prescribed by the parent company at all times mandatorily.
  • The parent company McDonalds grants unconditional rights to the franchise company to operate the restaurant in the areas as desirable to the franchise company.
  • The franchise has the right to advertise about being a franchise of the parent McDonald’s restaurant by bearing all the necessary costs related to advertising.
  • The franchise does not have the right to sub-license the franchise to any other company without the prior approval of the parent company.
  • The term of franchise is valid for 10 years and can be extended further if both the party agrees to the same.

In agreement to all the above conditions, both the parties provide their signature below:

Signature of the parent company: _______________

Signature of the franchisee company: ____________