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  

View all 16 comments Below 16 comments
Why not approach a CA or a legal practitioner expertised in such matters to serve your interests better? more  
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  
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  
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  
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  
Post a Comment

Related Posts

    • Motor Insurance Renewal w/o my knowledge by new owner under my name

      I sold my car in Jan 2017 to a dealership in Noida Sector-8 for an exchange value when buying a new vehicle. After 2.9 years of this transaction, I received a motor insurance certificate at my addr...

      By Akhil P Walia
    • Consumer protection

      Rs. 875/- paid to for Airtel postpaid bill on 08th sept.2019 has not been credited by Biller resulting in default requiring another payment if Rs.875/- ?? Amazon need to compensate ...

      By Surrender Singal
    • Advocate help required in NCDRC against builder jaypee.

      Advocate required for fighting case in NCDRC against jaypee builder on behalf of association for a very clear case of deficiency in service and extortion in the name of maintenance charges. We have...

      By Pravesh Saini
    • Re registration of 15+ years old vehicles

      What is the legal position on re registration of more than 15 years old vehicles. Is it compulsory to re register the vehicle after 15 years in case there is no plan to use it? If the veh...

      By Mustafa P V
    • Legal Advice on Property BuyBack Agreement & Mou

      Hi, Would anyone here will be able to help with the draft or guidance on property buyback agreement & mou offered by a real estate developer to an investor. Thanks

      By Anonymous Circle member
    • Advice needed

      There is one apartment having 5 flat owners . Out of 5 , three flat owners have occupied their flats . Recently , One flat owner on first floor might have given his flat on Rent to three boys as th...

      By Mahen Patle
    • Section IIC in supreme court of India

      Respected members, i have made a complaint to Supreme Court of India and this complaint is forwarded to section IIC. Can anybody explain the meaning of forward complaint to section IIC. W...

      By Iqbal Singh
    • How can I get judgement date from CDRF Shalimar Bagh.

      Plzz suggest me that what is to be done to get judgement from CDRF, Shalimar Bagh, Delhi as after submitting written arguments in January 2017, I am getting only date and dates for oral arguments....

    • Delhi school admission for 11th grade for a student passed 10th in open schooling

      Dear friends, Wanted to check whether a person who passed 10th grade through open schooling system can take the regular schooling admission for 11th in delhi government school. 2. If a person...

      By Anuradha Bhatta

      What precautions are advised for me at the time of selling my old vehicle?. It appears that name change with RTO takes a longer time and in the meanwhile should there be a misuse of the vehicle. Wh...

Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)