Standard investment contract is a contract between two parties pertaining to the rights and responsibilities of the parties with respect to investment. This consists of money, in which one party must pay to the other and they should provide each other required goods and services.
Sample Standard Investment Contract
Contract no: – STI-45/20
This Investment Contract is made between ABN Corporation (“Company”) and Wills Corporation on 1st June 2010.
- Wills Corporation wishes to invest 5 million dollars in the company, in exchange of some debentures of the Company and purchase of shares of the company.
- Both the party agree under certain terms and conditions:-
At the time of closing, the Company will borrow and Wills Corporation will invest an aggregate sum of 5 million dollars.
Repayment of debentures:-
From the closing date the Company will repay debentures quarterly
Interest on debentures:-
The Company is liable to pay interest on debentures on actual day elapsed from 360 days.
- The payment of principal amount and interest amount or any other amount should not take place after 12:00 noon (Washington D.C. time).
- A copy of certificates of debentures shall be presented to Wills Corporation.
Termination of contract:-
In case of any unforeseen circumstances, if the contract needs to be terminated then either of the parties shall inform the other party at least 6 months prior.
A grace period to make the necessary payment of 1 year should be given to the Company.
Hereafter, agreeing to all the terms and conditions the above said contract is said to come in existence.
Signature of Company
Signature of Wills Corporation