Legal Terms & Definitions

• Parties of the Sale Deed

  Sales Deed must state name, age, and address of both Buyer and Seller. Both parties must sign and execute the deed with bona fide intention.

• Sales Consideration & Mode of Payment

  The payment consideration paid by the Buyer to the Seller. The mode of payment must be mentioned along with the Seller's consent to accept it in that form.

• Description of the Property

  It should describe the total plot area, identification number, construction details, exact location, and surroundings. A property schedule defines the accurate location.

• Passing of the Title

  States when the property title passes to the Buyer. A time limit for title transfer must be specified; all related rights pass to the Buyer upon transfer.

• Possession Delivery

  Confirms possession transfers to the Buyer after registration is complete. The actual date of delivery must be stated.

• Indemnity Provision

  The Seller must clear all statutory charges — electricity, property tax, water, maintenance, and society charges — before executing the transaction.

• Default Clause

  If either party defaults, they must pay a penalty to the non-offending party to ensure the deed's execution is not affected.

• Earnest Money Deposit

  The deposit paid by the Buyer to demonstrate purchase intent, held in escrow until closing, must be mentioned in the Sale Deed.

• Names of the Parties

  Full names of the lessor and lessee must be clearly stated.

• Rent Amount & Mode of Payment

  The consideration paid by the lessee to the lessor, typically on a monthly basis.

• Repairs and Maintenance

  Specifies which party — lessor or lessee — is responsible for property repairs and upkeep.

• Utilities

  Defines which utilities are included in the rent and which the tenant is independently responsible for.

• Terms of Use

  The permitted purpose of the property and associated conditions for its use.

• Deposits

  The deposit amount required, its purpose, and conditions for return or adjustment at the end of the lease term.

• Insurance

  Whether the lessee must insure the property — most commonly required in commercial rental agreements.

• Duration

  Lease validity period and provisions for renewal, including terms and conditions for renewal.

• Termination

  The circumstances under which either party may end their legal relationship and discontinue fulfilling obligations.

• Description of the Property

  Property details including area, location, address, structure, and furniture or furnishings if provided.

A Private Limited Company restricts the right to transfer its shares. It can have a maximum of 200 shareholders and cannot invite the public to subscribe to its shares or debentures. The liability of each shareholder is limited to the unpaid amount of the shares' face value. The minimum number of shareholders is 2. This route is generally adopted by small business concerns.

A Public Limited Company has no restrictions on the maximum number of shareholders, transfer of shares, or acceptance of public deposits. The liability of each shareholder is limited to the unpaid amount of the shares' face value. The minimum number of shareholders is 7.

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.
LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name. Further, in LLP, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are protected from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP, as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.

A subsidiary is an entity controlled by a separate (parent) entity. Control is typically achieved through the parent company's ownership of shares in the subsidiary. Subsidiaries are separate legal entities for taxation and regulation purposes, maintaining independent compliance obligations.

Joint Ventures are most preferred arrangements between two or more business entities to achieve a specific objective. They are advantageous as a risk-reducing mechanism in new-market penetration and for pooling resources on large projects. In India, there are no separate laws specifically governing joint ventures.

• A person with assets who wants to designate heirs
• Must be at least 18 years old
• Must be of sound mind
• Must not be legally barred from making a Will by any competent authority

• Testator must be at least 18 years old and of sound mind
• Document must clearly state it is the testator's Will
• Must be typed or computer-printed (except for handwritten Wills)
• Must include property disposition or guardian appointment for minors
• Appointment of an executor to carry out the Will's instructions
• Signed by the testator and witnessed by at least 2 people

A Will can be revoked by the Testator at any time during their lifetime. A registered Will can also be revoked by approaching the designated Sub-Registrar's office and filing an application with the relevant supporting documents.

A Will can be altered by the Testator at any time during their lifetime. A registered Will can also be altered by approaching the designated Sub-Registrar's office and filing an application with the relevant supporting documents.