While legal advice is of the utmost importance to ensure that any investment contract goes overboard, you still need to know what is being asked of you in order to decide whether such provisions are acceptable or not. Whether you are an investor who wants to invest money in a start-up or an entrepreneur trying to invest financing in your project, it is important that you understand the terms of any investment. It is not necessary that this agreement must be registered, but for the security purpose, you can govern ter.the stamp duty will be minimal, based on the amount mentioned CE Memorandum of Understanding did this ____________day of _____________between ABC with its office at__________________, India, referred to as « ABC » (which is the term « ABC Group, » unless it is repugnant to the context or importance of importance and closes to itself and other current shareholders of __________________Pvt Ltd and their respective heirs, executors, directors and beneficiaries) of a party and Mr. XYZ, who at_____________________ his office. (Hereafter referred to as « XYZ, » the term « XYZ Group » unless they are repugnant to the context or importance of this group and do not include its nominees to the extent covered by this party and their heirs, executors, directors and beneficiaries of the assignment) of the SECOND PART; AND CONSIDERING that the parties intend to record in writing the terms of their agreement 2. In India, digitization is still only a prelude, for which it will be wise for you to execute and record the agreement by manually signing before the registrar. 1. You have to make many legal bases for an investment of Rs.25 Lakhs in a start-up. Under Indian law, a written signature is not necessarily required for a valid contract – contracts are generally valid when legally qualified parties enter into an agreement, whether they accept verbally, electronically or in a physical paper document.
The Information Technology Act, 2000, expressly confirms that contracts cannot be refused because they are concluded electronically. In order to prove a valid contract, parties sometimes have to present evidence in court. Leading solutions for digital transaction management can provide authorized electronic records under Section 65B of the Evidence Act, 1872, to support the existence, authenticity and valid acceptance of a contract. 3. You must enter into a detailed agreement specifying all the necessary clauses, i.e. profit sharing, decision-making power, power to review documents/registrations, no change of management without your written consent, secure restitution, withdrawal procedure of the amount invested, etc. In addition, showing that you have confessions about such things will generate more confidence in you as an investor or start-up businessman during negotiations. 4.
You will be careful to register the above agreement in order to avoid future legal problems in this regard.