Hello,
Enter into an agreement thereupon mentioning the liabilities of the parties. Also the same needs to be drafted in a way so that the liabilities of the Directors can be avoided.
Regards
Hiring of services
What precautions to be taken when a Vendée enters into an agreement with a Pvt ltd co in hiring vehicles wherein vehicles are registered in personal names of directors
Asked 5 years ago in Business Law
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7 Answers
Hi, a brief agreement explaining the liabilities that may occur during the course of business has to be made ..Clauses such as liability in terms of accident , theft and negligence
before entering into agreement you should check the agreement through your counsel.
Sor if vehicles registered in personal name.of directors and there is no agreement between company and the directors regarding vehicles it is better to enter in agreement with the directors and raise bill on there name.Otherwise in case of any mishap the company shall deny the liability citing the vehicle is not registered to them so in that case the clause in the agreement can be made.that specifies that vehicles registered to.directors in personal.capacity are given to company for services and in case of any mishap the director and company are liable and the party is free to proceed against both the directors and the company.
1) you must have valid insurance policy for giving car on hire basis
2) agreement should mention rentals to be paid to you
3) there should be clause that if rentals not paid on time intetest at rate of 18 per cent woukd be paid
4) period of agreement should be mentioned
5) it should be mentioned that company would be liable in case car meets with an accident
6) further driver of car should ha e valid driving licence
The agreement needs to be drafted by some advocate containing all the terms and condition so that nothing is left out of the agreement.
Covenants such as termination clause, dispute clause and arbitration clause are to be carefully drafted.
Who is vendee?, if vendee is considered to be a buyer then he has got absolute rights as a owner in the property/vehicle.
Therefore there is no question of entering into any agreement for buying.
In any case until the company owns the vehicle, either absolute or by a registered assignment, the company cannot enter into any such agreement on the property which is not owned by the company.
