Term Sheets: Definition, What's Included, Examples, and Key Terms

Definition

Employment Contracts in India

Employment contracts are vital documents that define the terms & conditions & several other details of employment that an employer & employee should adhere to for as long as they work together.

What is a Consultancy Agreement?

A Consultancy Agreement is a contract under which the terms of service between a Consultant (the person or entity providing the service) and the Client (the person or entity receiving the service) are defined. This Agreement can be used when an individual or a business entity avails of the services of the Consultant or independent contractor. This Agreement can be either used by a Client planning to get Consultancy Services from a Consultant or a Consultant willing to provide the Service to a Client.

This Consultancy Agreement can be used in different scenarios including the following:

• Management Consultants
• Strategy Consultant
• Financial Advisory Consultant
• Human Resource Consultant
• IT Consultant
•  

Is it mandatory to have a Consultancy Agreement?

No, it is not mandatory. However, a properly drafted Consultancy Agreement is essential to avoid any disputes or settling the disputes between the Consultant and the Client.

 

What must a Consultancy Agreement contain?

The Consultancy Agreement must include the following clauses:

• Parties Involved: The details of both the Consultant and Client including office address if any, will be included under this Agreement.
• Scope of Work: SoW defines the Services for which the parties have entered into this Agreement.
• Payment Terms: Under the Payment Clause, it is specified how the consulting fee will be calculated (hourly, daily, monthly, etc.), the method and the period of payment.
• Deliverables: Specific outputs or results the consultant is expected to deliver.
• Duration: starting date and end date of consultancy services.
• Termination: conditions under which the Consultancy Agreement can be terminated.

Introduction

Have you ever received a formal-looking document that says “Legal Notice” at the top? If so, you’re not alone. Legal notices are a common way for individuals or organizations to assert their legal rights and demand specific actions from the recipient. In this blog post, we’ll dive into the world of legal notices, exploring what is legal notice, why to send legal notice, and the common situations where you might encounter them.

 

What is a Legal Notice?

So, what is legal notice? A legal notice is a formal, written communication that informs the recipient of a legal matter or issue. It is typically sent by an individual, company, or legal representative to another party, outlining specific claims, demands, or intentions. Legal notices are often the first step in resolving disputes or enforcing legal rights before escalating matters to a court of law.

Purpose of Legal Notice

The primary purpose of a legal notice is to formally assert one’s legal rights and put the recipient on notice about a particular issue. 

By sending a legal notice, the sender aims to:

• Inform the recipient of a legal claim or grievance
• Demand specific actions or remedies to resolve the issue
• Provide an opportunity for the recipient to respond or comply
• Establish a record of the communication for future legal proceedings

Legal notices serve as a way to initiate a dialogue between parties and potentially resolve disputes without the need for costly and time-consuming litigation.

Common Situations Where Legal Notices are Used

Legal notices are used in a wide range of situations, including but not limited to:

1. Breach of Contract: When one party fails to fulfill their obligations under a contract, the other party may send a legal notice demanding compliance or compensation.
2. Recovery of Money: Creditors may send legal notices to debtors, demanding payment of outstanding debts and outlining the consequences of non-payment.
3. Intellectual Property Infringement: Copyright, trademark, or patent holders may send legal notices to alleged infringers, demanding that they cease the infringing activity.
4. Landlord-Tenant Disputes: Landlords may send legal notices to tenants for various reasons, such as non-payment of rent, property damage, or lease violations.
5. Defamation: Individuals or organizations may send legal notices to those who have made false or damaging statements about them, demanding a retraction or apology.
6. Employment Disputes: Employers or employees may send legal notices regarding issues such as wrongful termination, discrimination, or harassment.
7. Consumer Complaints: Consumers may send legal notices to businesses for issues such as defective products, false advertising, or poor service.

In each of these situations, a legal notice serves as a formal record of the issue and a demand for action, paving the way for potential legal recourse if the matter remains unresolved.

Types of Legal Notices

Legal notices come in various forms, each serving a specific purpose depending on the nature of the legal issue at hand. Some of the most common types of legal notices include:



                                                               

1. Cease and Desist Legal Notice: This type of notice is sent when the recipient is engaging in an activity that the sender believes is illegal, harmful, or infringing on their rights. The notice demands that the recipient stop the specified activity immediately or face legal consequences.
2. Demand Legal Notice: A demand notice is sent to request that the recipient take a specific action, such as paying a debt, returning property, or fulfilling a contractual obligation. The notice typically outlines the consequences of failing to comply with the demand.
3. Legal Notice for Eviction of Tenant: Landlords send eviction notices to tenants when they want to terminate the tenancy agreement. The notice informs the tenant that they must vacate the property within a specified time frame or face legal action. Read more about legal notice for tenant eviction on our blog.
4. Copyright Infringement Legal Notice: Copyright holders send this type of legal notice to individuals or organizations that are using their copyrighted material without permission. The notice demands that the recipient stop using the material and may seek compensation for any damages caused by the infringement.
5. Legal Notice for Defamation: When an individual or organization believes that someone has made false or damaging statements about them, they may send a defamation notice. The notice demands that the recipient retract the statements, issue an apology, or face legal action for defamation. To understand more on this topic, read more on legal notice for defamation.
6. Legal Notice for Breach of Contract: This notice is sent when one party to a contract believes that the other party has failed to fulfill their obligations under the agreement. The notice outlines the specific breaches and demands that the recipient remedy the situation or face legal consequences. Read our blog for further readings on legal notice for breach of contract.
7. Legal Notice for Wrongful Termination: Employees who believe they have been wrongfully terminated from their job may send a notice to their former employer, alleging that the termination was unlawful and seeking compensation or reinstatement.
8. Legal Notice for Harassment: Victims of harassment may send a legal notice to their harasser, demanding that the behavior stop and outlining the legal consequences of continued harassment.
9. Legal Notice for Trespass: Property owners may send a trespass notice to individuals who have entered their property without permission, warning them that further trespassing will result in legal action.
10. Legal Notice for Product Liability in Consumer Matters: Consumers who have been injured by a defective product may send a legal notice to manufacturer or seller, seeking compensation for their damages and demanding that the product be recalled or corrected.

These are just a few examples of the many types of legal notices that exist. The specific type of notice used will depend on the nature of the legal issue and the desired outcome. Regardless of the type, all legal notices serve the common purpose of asserting legal rights and demanding action from the recipient.

Is it Mandatory to Reply to a Legal Notice?

When you receive a legal notice, it’s natural to feel stressed and unsure about what to do next. One common question that arises is whether you are legally obligated to respond to the notice. The answer, in most cases, is no. However, there are some important considerations to keep in mind when deciding whether to reply.

No Legal Obligation to Reply in Most Cases

In most situations, there is no legal requirement to respond to a legal notice. The notice serves as a formal communication of a legal issue, but it does not typically carry the same weight as a court order or summons. This means that you cannot be held in contempt of court or face legal penalties solely for failing to reply to a legal notice.

Risks of Ignoring a Legal Notice

While you may not be legally obligated to respond, ignoring a legal notice can come with certain risks:

1. Escalation to Legal Proceedings: If you don’t respond to the notice, the sender may choose to escalate the matter by filing a lawsuit or taking other legal action against you. This can lead to a more time-consuming and costly legal process.
2. Presumption of Acceptance: In some cases, failing to respond to a legal notice may be interpreted as an acceptance of the claims or demands made in the notice. This can weaken your position if the matter does proceed to court.
3. Lost Opportunity to Resolve Dispute: By ignoring a legal notice, you may miss out on an opportunity to resolve the issue through negotiation or settlement. Early communication can often lead to a quicker and more cost-effective resolution.

Benefits of Replying to a Legal Notice

While you may not be required to respond, there are several benefits to replying to a legal notice:

1. Opportunity to Present Your Side: Responding to a legal notice allows you to present your perspective on the situation and potentially clear up any misunderstandings or inaccuracies in the notice.
2. Possibility of Negotiation and Settlement: By engaging in communication with the sender, you may be able to negotiate a mutually agreeable resolution to the issue without the need for legal action.
3. Avoiding Costly Litigation: Responding to a legal notice and working towards a resolution can help you avoid the expense and stress of a lengthy court battle.

Ultimately, the decision to reply to a legal notice depends on the specific circumstances of your case. If you are unsure about how to proceed, it’s always a good idea to consult with a legal professional who can advise you on the best course of action.

How to Respond to a Legal Notice

If you’ve decided to respond to a legal notice, it’s essential to approach the process carefully and strategically. Here are the key steps to follow when crafting your response:

1. Acknowledge Receipt: Begin by acknowledging that you have received the legal notice. This can be done through a simple written statement, such as “I am in receipt of your legal notice dated [date].”
2. Analyze the Claims and Demands: Carefully read through the legal notice and make sure you understand the specific claims being made and the demands being sought. If anything is unclear, consider seeking clarification from the sender or a legal professional.
3. Gather Relevant Evidence and Documents: Collect any evidence or documents that are relevant to the claims made in the notice. This may include contracts, emails, receipts, or other records that support your position or refute the claims against you.
4. Consult with a Lawyer: The legal notice may involve complex legal issues or significant potential consequences. Hence, it is highly recommended to consult with a lawyer. An experienced attorney can help you understand your rights, evaluate the strength of your case, and develop an appropriate response strategy.
5. Draft a Clear and Concise Reply to Legal Notice: When drafting your response through a lawyer, aim for clarity and conciseness. Address each of the claims made in the notice and provide your perspective on the situation. Use factual statements and avoid emotional language or personal attacks.
6. Propose a Resolution or Settlement if Applicable: If you believe there is an opportunity to resolve the issue without further legal action, consider proposing a resolution or settlement in your response. This could involve offering to take specific actions, make payments, or engage in mediation or arbitration.
7. Send the Response within the Stipulated Time: Most legal notices will specify a deadline for your response. Make sure to send your reply within this timeframe to avoid any negative consequences. If you need more time to respond, you may be able to request an extension from the sender.

Remember, the goal of your response is to protect your legal rights and interests while working towards a resolution of the issue at hand. By following these steps and seeking legal guidance when needed, you can craft an effective response to a legal notice.

Concluding Remarks

In this comprehensive guide, we’ve explored the world of legal notices, covering their definition, types, and the importance of responding to them appropriately. By understanding the key points discussed, you’ll be better equipped to navigate legal matters and protect your rights and interests.

To recap, a legal notice is a formal communication that informs the recipient of a legal issue or demand. While there is generally no legal obligation to reply, ignoring a notice can carry risks such as escalation to legal proceedings, presumption of acceptance, and lost opportunities for resolution.

It’s crucial to take legal notices seriously and respond in a timely and strategic manner. This may involve acknowledging receipt, analyzing the claims, gathering evidence, consulting with a lawyer, and drafting a clear and concise response. In some cases, proposing a resolution or settlement can help avoid costly litigation.

However, the best approach is to be proactive and take measures to avoid legal disputes altogether. This includes complying with laws and regulations, honoring contractual obligations, respecting intellectual property rights, being cautious in communications, addressing disputes promptly, and maintaining proper documentation.

Remember, navigating legal matters can be complex, and the consequences of missteps can be significant. If you find yourself in a legal situation that you’re unsure how to handle, don’t hesitate to seek professional legal advice. An experienced attorney can provide valuable guidance, protect your rights, and help you achieve the best possible outcome.

 

Frequently Asked Questions

Can a Legal Notice be Sent by Courier?

Yes, legal notices can be sent by courier or any other reliable means of delivery that provides proof of receipt. While there is no specific requirement for the method of delivery, it is generally recommended to use a service that can provide a tracking number and confirmation of delivery. This helps establish a record that the notice was successfully received by the intended recipient.

How to Send a Legal Notice to Someone?

Firstly, it is important to engage a lawyer or advocate to draft a strong legal notice for you. After that, there are a few common methods for sending a legal notice to someone:

1. Registered Mail or Certified Mail: This is often the preferred method as it provides proof of delivery and a record of when the notice was received.
2. Personal Delivery: You can have the legal notice hand-delivered to the recipient by a process server or courier service.
3. Email: In some cases, legal notices can be sent via email, but it’s important to ensure that the recipient has agreed to receive legal communications electronically.

Regardless of the method you choose, be sure to keep a record of the delivery details, such as the tracking number or the name of the person who accepted the notice.

Can a Legal Notice be Defamatory?

Yes, it is possible for a legal notice to contain defamatory statements, which could potentially lead to legal action for defamation. When drafting a legal notice, it’s important to stick to factual statements and avoid making false or unsubstantiated claims that could damage someone’s reputation.

If you receive a legal notice that you believe contains defamatory statements, you should consult with a lawyer to understand your rights and options for responding or taking legal action.

Can I Send a Legal Notice Without a Lawyer?

While it is generally possible to send a legal notice without the assistance of a lawyer, it is often advisable to seek legal counsel, especially in complex or high-stakes situations. A lawyer can help ensure that your legal notice is properly drafted, includes all necessary elements, and complies with relevant laws and regulations.

However, if you choose to send a legal notice without a lawyer, it’s important to research the specific requirements and guidelines for your jurisdiction and the type of legal issue involved. You should also be prepared to follow proper procedures and potentially represent yourself in any subsequent legal proceedings that may arise.

Ultimately, the decision to involve a lawyer will depend on the complexity of your case, the potential consequences, and your level of comfort navigating legal matters on your own.

What laws govern legal notice in India?

In India, legal notices are governed by the Code of Civil Procedure, 1908 (CPC) and various other statutes, depending on the specific type of dispute. They are commonly used in civil cases, such as property disputes, breach of contract, and matrimonial issues, among others. While legal notices may not always be mandatory, they are often necessary to establish that the aggrieved party made a genuine attempt to resolve the matter before approaching the court.

What is the validity of legal notice?

The validity of a legal notice can vary depending on the specific legal provisions governing the dispute. Generally, the recipient has a specified time frame, usually 15 or 30 days, to respond to the notice. If no response is received within that time frame or the matter remains unresolved, the sender can proceed with initiating legal action.

What is the cost of sending a legal notice?

The cost of sending a legal notice in India can vary depending on factors such as the advocate’s fees, the complexity of the case, and the location of the parties involved. On average, the cost of sending a legal notice ranges between INR 3000 to INR 15,000, including the advocate’s fees and postage charges.

 

ABOUT SALE  DEED

A sale deed is an essential document through which the ownership of a property is transferred from one person to another. A sale deed of property is necessary for purchasing and registering a property. The property is registered based on the details mentioned in the sale deed. 

The buyer of a property mentioned in the sale deed property will become the new legal owner of the property after its registration. The article provides the sale deed meaning, format sale deed, contents of the sale deed, the agreement to sale deed and the execution of the sale deed.

A will or testament is a legal document by which a person, the testator, expresses their wishes as to how their property is to be distributed at death, and names one or more persons, the executor, to manage the estate until its final distribution. For the devolution of property not disposed of by will.

DEFINITION
As per Section 2(h) of Indian Succession Act, 1925 provides that Will means the legal declaration of the intention of a person with respect to his property, which he desires to take effect after his death Will has been defined in Corpus Juris Secundum as A ‘Will’ is the legal declaration of a man’s intention, which he wills to be performed after his death, or an instrument by which a person makes a disposition of his property to take effect after his death.

Why you should make a will?
Four reasons why you need a will:

A will makes it much easier for your family or friends to sort everything out when you die – without a will the process can be more time consuming and stressful. If you don’t write a will, everything you own will be shared out in a standard way defined by the law – which isn’t always the way you might want. A will can help reduce the amount of Inheritance Tax that might be payable on the value of the property and money you leave behind. Writing a will is especially important if you have children or other family, who depend on you financially, or if you want to leave something to people outside your immediate family.

 

Partnership deed is a partnership agreement between the partners of the firm which outlines the terms and conditions of the partnership between the partners. The purpose of a partnership deed is to provide clear understanding of the roles of each partner, which ensures smooth running of the operations of the firm.

The Partnership comes into the limelight when:

• There is an outcome of agreement among the partners.
• The agreement can be either in written or oral form.
• The Partnership Act does not demand that the agreement has to be in writing. Wherever it is in the form of writing, the document, which comprises terms of the agreement is called ‘Partnership Deed.’
• It usually comprises the attributes about all the characteristics influencing the association between the partners counting the aim of trade, the contribution of capital by each partner, the ratio in which the gains and losses will be divided by the partners and privilege and entitlement of partners to interest on loan, interest on capital, etc

Employment contracts are important documents for employees to have a better understanding of their role and responsibilities and the company’s expectations. A written draft of such a contract is vital to specify the employee’s responsibilities and the employer’s liabilities. Considering that the specific details of different contracts may vary for different companies, you need to thoroughly go through an employment contract before signing it.

This draft will help understand the key features of an employment contract, which will help you learn the exact expectations of your employer before you sign up for a role at their organization.

Importance of Employment Contracts

 

The main purpose of employment contracts is to provide job security to the employee while providing a safety net to the employer too, in case of low productivity issues. It clearly spells out the rights of each party involved and protects various assets of the company that the employee is granted access to while working for a company. This article will dive into the various aspects associated with employment contracts and give you a comprehensive idea of the same to ensure you know what to look for before signing your next employment contract.

Conclusion

An employment contract is the legal binding that both the employer and employee must adhere to. Failing to do so may result in the defaulter having to face consequences and penalties, depending on the severity of the violation. It is imperative for employers to define all their expectations clearly in the contract of employment, while employees must follow the terms and conditions of employment once they have negotiated and signed the contract.

We can assist you with concerns related to employment contracts in India. You can get in touch with us by submitting a query.

Who can enter into a Consultancy Agreement?

Any individual above the age of 18 years or entity registered in India can enter into a Consultancy Agreement.

 

What can be the duration of a Consultancy Agreement?

The duration of the Consultancy Agreement varies based on the nature of the project. It can be for a duration of a few months or a few years. It can also be for an indefinite period unless terminated by either party in accordance with the Consultancy Agreement.

 

What has to be done once the Consultancy Agreement is ready?

Once prepared the Consultancy Agreement should be printed on non-judicial stamp paper or e-stamp paper, and signed by both the consultant and the client. The value of the stamp paper would depend on the state in which it is executed. Each state in India has provisions in respect of the amount of stamp duty payable on such agreements. Information regarding the stamp duty payable can be found on the State government websites.

Once all parties have signed, both the consultant and the client should keep a signed copy of the Consultancy Agreement. To do this, two different copies can be signed, or if only one copy is signed, it can be photocopied and then distributed between the parties.

 

Which documents should be attached to a Consultancy Agreement?

To have an additional protection, the following documents can be attached along with the Consultancy Agreement:

Non-Disclosure Agreement: If the parties want to fix more complete provisions concerning the confidentiality obligation (for instance: what should and should not be considered confidential information, for how long should they be kept confidential, etc.), they can sign a separate Non-Disclosure Agreement.
Non-Compete Agreement: if the parties want to have a detailed agreement to restrict the consultant from competing with the Client for a particular period in a specific region.

 

Can a Consultancy Agreement be terminated?

Yes, a Consultancy Agreement can be terminated. The Consultancy Agreement is mainly terminated on the following grounds:

• Mutual agreement between both parties
• A material breach of contract by one party such as non-payment, or compromise of key confidential information to third parties.
• Completion of the project or reaching a pre-defined milestone in the Consultancy Agreement.
• Unforeseen circumstances where the project cannot be continued (force majeure event).

 

Which laws are applicable to Consultancy Agreements?

Consultancy Agreements are regulated and enforceable under the Indian Contract Act, 1872.

 

Key ingredients of a Will are as follows:

Testator Details – Name, age, address details of the person making the Will

Legal declaration – A Will is a declaration. A Will is by which a living person (called testator) declares his desires or intentions. A Will is never an agreement or contract or settlement. It is for this reason that the beneficiaries of a Will should not be parties to the Will. The declaration must be legal. A declaration that is illegal either by way of the ultimate objective or in some other way will not be considered as a Will. Intention of testator – A Will is a declaration of intention of the person making the Will. By definition, intention relates to the future and is different from statement of narration of facts as at present. A Will that only narrates the present state of affairs and does not carry a clear exposition of the intention of the testator is not a Will. Similarly, if a Will made by a wife stating what her deceased husband always desired before death is not a Will; since it carries intentions of the testator’s deceased husband and not of the testator.

Intention of testator – A Will is a declaration of intention of the person making the Will. By definition, intention relates to the future and is different from statement of narration of facts as at present. A Will that only narrates the present state of affairs and does not carry a clear exposition of the intention of the testator is not a Will. Similarly, if a Will made by a wife stating what her deceased husband always desired before death is not a Will; since it carries intentions of the testator’s deceased husband and not of the testator.

With respect to his / her property – A Will can only be made with respect to the property that the testator owns or has rights over. The simple rule is that one can only give what one

Frequently Asked Questions on Partnership Deed