Need help/Suggestion
I am buying a running restaurant from individual. Paying him a heavy refundable deposit and also a small amount every month as royalty for the business. Shop owner is different with whom I will do leave and licence agreement. I need help to know what type of agreement I need to do with business seller so that I can get the refundable deposit from him at later stage without any difficulties more
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Why not approach a CA or a legal practitioner expertised in such matters to serve your interests better? more
Oct 10
Uday GB has suggested a right measure to secure refundable security amount. In case there is a default by the current restaurant owner possession is not going to help as the place is owned by a third party. As far as leave and licence agreement is concerned, you shall have to abide by the conditions of the leave and licence agreement untill and unless you and the property owner agree to get into a fresh leave and licence agreement. more
Oct 06
Go for Bank Gurantee &/Or Escro Account wherein you can withdraw after termination of Agreement. Third Party Gurantee is other option, you can opt for. more
Oct 06
Dear Anilji, shop owner has a leave and license with current restaurant owner which has a lock in of next 18 months. Where the rent cannot be increased and no h parties have to abide. Pls guide more
Oct 06
You should sign a tripartite agreement (You, the person running the restaurant and the owner of the place). This seems like a tricky position you are putting yourself into. If you are signing different agreements with the Shop owner and the person running the business, what is the relation left between the shop owner and the person selling the business. Either one of them can cancel the agreement (as per the terms and condition of the contract) and then you will be left high and dry without either the business or the place to run the restaurant from. What sort of the security you are getting from the person renting his business to you? He can coolly collect the hefty deposit from you and further monthly emoluments you are paying (till the time you are able to pay) and then refuse to return the deposit or make excuses. What are you going to do? What if the shop owner terminates the contract and the other person does not refund the deposit? If you are paying hefty deposit it is better to buy out the business completely or make him a partner in the business. Or just sign an agreement with the shop owner and start a new business (restaurant) altogether. more
Oct 05
