Step 4 B:- Drafting of Agreement

Sometimes it is advisable to get a written agreement for our future reference, It may be an MOU or any other informal agreement. It can help to avoid many unwanted misunderstanding in future

What is the difference between Agreement and Contract?

Agreement:- As the name suggests when two or more people agree on some point it becomes agreement. When these agreement become legally enforceable on registration it becomes Contract.

Why should get agreement if it is not legally enforceable?

Although Agreements are not legally enforceable it provides a great level of clarity and dependency as compared to oral agreements. An agreement when getting drafted put the oral words in writing and hence clear many practical issues which may arise in case of oral agreements. Further it forms a base to take it further to register as a contract

In what a situation where drafting an Agreement is advisable?

Short term Joint venture
MOU for Sale of property or sale of any asset
Agreement in principle
Mutual acceptance of initial terms of any contract
Initial negotiation terms
Paying advance for any services

Who should get agreement drafted?

Buyer and seller of property or any other assets
Service Provider & Receiver