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Agreement legalities

Others 382 views 1 replies

Faiz Ahmed

Article Trainee

1731 Points Joined June 2010

Can anyone answer this:-

CASE:- Mr. A of Chennai decides to let out his land and building at Lucknow to Mr. P. Mr.P who stays in lucknow agrees to pay Rs5000 p.m. as rent with an advance of 1month. The rent of future 11 months is recieved by A in the form of Post dated cheques.

Q1-- Can Agreement of Rent be drafted from Chennai and signed by respective parties?

Q2--- For how many months , the rental agreement can be drafted?

Q3-- Can it be drafted merely on stamp paper or does it require registration?

Thnx in advance!!!

Replies (1)

Saurjya

CA FINAL STUDENT

70 Points Joined July 2008

Hi,

In my opinion:

1. The agreement can be drafted from Chennai and signed by respective parties.

2. The rental agreement can be made for the period agreed between both the parties. In this case since rent of 1 month is paid in advance and 11 months paid by post dated cheques it is assumed the period agreed is for 12 months. However local tenancy acts should be considered.

3. It is advisable to draft the agreement on a stamp paper of requisite value as per Stamp Act and get the agreement registered.