Legal Awareness Workshop

Ashish Kumar

Content
Understanding Expectations

Basics of Contracts
Lease Contracts / Agreements Dos & Donts of Contracts Q&A

Understanding Expectations
What are general queries / clarifications

which you would like to seek ?

Examples of Contract
Some examples of general contracts for hotel

industry
Laundry contract Cable operator contract Car hiring contract Stationery contract Pest control contract Spa & Saloon operating agreement

Lease

contracts

& many more.

Basics of Contracts

We enter into contracts so many times in a day that Contract has become an indispensable part of our life. As per Indian contract act,1872: An agreement

enforceable by law is a contract

Steps involved a contract :

Offer by one party to another Acceptance by other party and its communication of acceptance Free consent of parties Parties must be competent to contract Contract should be for a lawful consideration & for a lawful object

Basics of Contracts contd..

Contract should be in writing e.g. contract for sale of immovable property must be in writing, stamped and registered.
A contract can be enforced or compensation/damages for breach of contract can be obtained through Courts

Lease Contracts

Collect copy of property title papers i.e. Sale Deed, Allotment Letter / Possession Letter, Power of attorney for signing person (in case lessor is not signing himself/herself) Clearly specify in contract about responsibility for following charges Property tax/Municipal taxes - it should be paid by lessor Maintenance charges - electricity and water expenses Avoid / minimize duration of any Lock-in-period clause Keep maximum one month notice period for early exit / termination Thoroughly check premises (maintenance issues, fitting/fixtures) before taking possession Try to maintain status quo till final handover to avoid any dispute Clearly inform lessor about TDS deduction as per income tax laws. Execute Lease on requisite stamp paper.

Dos & Donts of Contracts

Dos

Enter proper name of the company e.g. Krizm Hotels Pvt. Ltd. /Spank Hotels Pvt. Ltd. / Canary Hotels Pvt. Ltd. Always mention registered offices address of the company i.e. B6/17, Safdarjung Enclave, New Delhi-110029 Provide maximum clarity on contract scope Define delivery & commercial terms clearly Changes should be supported by supplementary agreements Clearly define contract termination conditions & procedures Retain proper records In case of any dispute, first try to solve it amicably

Donts Dont enter contract with Lemon Tree Hotel Company or Red Fox Hotel Company, because these are just brand names and dont have any legal identity in terms of company name