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Legal Tips on how Parties can invoke Arbitration Clause enshrined in an Agreement: Lawyers Advice

Arbitration in India is supervised by the Arbitration and Conciliation Act, 1996 which says that for implementing arbitration as a dispute resolution device, an agreement in that respect, should be signed between the disputing parties.Laws governing Arbitration Clause/Agreement in India: -Section 7(1) of the Arbitration and Conciliation Act, 1996 (as amended in 2015) explains Arbitration Agreement as: -In the presence of a legal relationship between the parties, a relation which may or may not be a contractual, an agreement is signed between parties deciding arbitration as the mechanism for resolution of disputes, wholly or in part, that may arise or...

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Effects of COVID-19 on Home Buyers and Real Estate Developers: Lawyers Advice

The real estate sector has been coping with a decelerating economy, credit crunch and growing inventories for quite some time, and the COVID-19 pandemic has only made matters worse. The nationwide lockdown, that came as a result, has stopped most activities relating to construction and has seen labourers planning to or having already gone back to their villages. This would obviously lead to a shortage in labour for quite some time and can further delay the recovery progress for such a sector. The reduction in demand in the residential sector has already cut project launches, housing sales and price growth in...

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Mitigating the Effect of COVID-19 on MSMEs and Business Loans: Lawyers Advice

Medium, Small and Micro Enterprises (MSMEs) have contributed immensely to our economy and with investment at low levels, it has been giving the highest employment in the country giving a wide range of services and products.Due to the lockdown, the MSMEs are one of the worst hit because of the sudden pause on all operations, thereby creating a state of alarm. Regulations regarding Secured Lending in India: -Secured lending is regulated in India. A number of institutions are authorized to participate in lending activities. These include: • scheduled and non-scheduled commercial banks; • non-banking finance...

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Legal Steps to Terminate a Franchise Agreement: Lawyers Advice

A franchise business is a quick way to get into the market and beneficial for both the parties in the Franchising agreement i.e. Franchisor and the Franchisee. The franchisee gets instant recognition, resources and established market and on the other hand, the franchisor gets royalties, vast reach and better business prospects by reaching different target countries.However, sometimes the situations are not as it was expected before or there has been some change in the minds of either of the parties in regards to the Franchising pact. Legal Implications of Termination vs. Non Renewal of the Franchise Agreement: In franchising business both...

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Legal Solutions for Franchisor against Under-Billing & Under-Reporting of Sales by a Franchisee: Lawyers Advice

Franchisee under-reporting is when the franchisee does not report the exact income or sales than what he actually earns so that the accountability of lesser money will be less. The Courts have little sympathy for franchisees who fail to report all revenue making the franchisor suffer wrongful loss. Legal Steps to reduce Under-reporting and under-billing by a FranchiseeIt boils down to these critical steps: • Track data regarding third-party delivery: Third party aggregators generate more data for your organization. • Centralized Data within the Point of Sale (POS):.Centralized data storage allows for increased use of...

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Legal Solutions for Franchisor to Recover Unpaid Franchise Royalty fees: Lawyers Advice

Franchise agreements benefit the franchisees by providing with well established recognition of the business. But there is a price to pay quite literally. The initial license fee is paid along with regular royalty fees which can be weekly, monthly quarterly or even yearly that depends upon the mutually decided term. Four legal steps to be taken by the franchisor on default of royalty payment:The following steps should be undertaken to recover unpaid franchising royalty fees in case of default by franchisee: • Negotiation should be the first step to approach the problem of default of royalty payment. The...

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Legal Solutions to Franchisee for facing Lack of Ongoing Support & Quality Management from the Franchisor: Lawyers Advice

In any business a company may have an objective of increasing profit margin by engaging in activity which would reduce the expenditure or increase the revenue. Due to the company’s goal sometimes franchisees suffer a great deal by not getting adequate support from the franchisor’s end. Many franchise agreements are made a certain way which is silent or contains fewer provisions about franchisor’s obligations but many obligations on the franchisees. This makes it tough for the franchisee to prove that there had been lack of support by the franchisor which violates the rights of the franchisee. It becomes difficult for...

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Legal Importance & Sanctity of Executing a Shareholders Agreement (SHA): Lawyers Advice

A Shareholders Agreement is essentially an agreement entered into between the company and shareholders, which enlist the rights and obligations of the shareholders. It is made with the objective of promoting and protecting investment in the company and establishing a fair relationship between the shareholders. It plays a huge role in governing how the Company is to be run. Shareholders Agreement contains certain important things such as- • The structure of the Company • Rights and obligations of the shareholders • Regulation on sharing and transferability of shares •...

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Legal Challenges faced by an IVF Clinic & their Solutions: Lawyers Advice

There has been rapid development in the medical sector, thereby leading to numerous medical inventions such as stem cells, human cloning, Assisted Reproductive Technologies (ART) etc. Infertility refers to the incapability to have a child and there have been numerous advancements in this field in the form of Assisted Reproductive Technology (ART). In Vitro Fertilization (IVF) is an essential part of ART and is essentially used as a treatment for infertility. However, it is still a growing phenomenon and not a lot of people come forth to seek treatment. This is generally a very expensive affair and there tends to...

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Legal Responsibility of Data Protection & Data Privacy of E-Commerce Websites & Portals: Lawyers Advice

There has been an exponential increase in the e- commerce market in India in recent years. Several government initiatives like Skill India, Make in India, Digital India, Innovation India and Start – up India have incentivised the setting up and carrying out of business activities on online platforms. Consequently, the Indian e- commerce sector is growing at an annual rate of 51 per cent which is the highest in the world. The term ‘e-commerce’ has been defined under Section 2(44) of the Central Goods and Service Act, 2017 as “the supply of goods or services or both, including digital products...

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