Why not use an Online Sample Agreement for your business
An agreement is a kind of promise made by both parties. In India, many agreements are bound orally among the people for different kinds of purposes, which starts from betrothal agreement to business agreements.
But for marriage it is ok to go with an oral agreement, but for Business purposes? Oral agreement always leads to misunderstanding, and furthermore, the Indian courts entertain only written agreements while handling business disputes. That is why the agreement drafted by a business lawyer is important.
Additional information: According to Section 2(e) of the Indian Contract Act 1872, “Every promise and every set of promises, forming the consideration for each other, is an agreement”.
After reading this introduction, you will start searching in the web browsers for sample documents for your reputed businesses, but don’t do it. Just be wary of such kinds of online documents. Now you have a question: why do you not use online sample agreements? This article answers that for you, let’s get started.
WHAT IS A WRITTEN AGREEMENT?
A business Contract can be verbal (agreed by both the parties by word of mouth) or written. Most of the time, in India, business traders use to supply or deliver a product just agreed by word of mouth. When a business deal is about to be finalized, whatever is mutually agreed upon between both the parties, to be written on a piece of paper and signed by both the parties in front of witnesses is called a written business agreement or contract.
The written agreement gives a mutual understanding between the partners or vendors legally. The written agreement includes all the important points such as delivery date, liability and profit of both, advantages, and the promises given by both parties. This written agreement serves as a witness in case of a misunderstanding. Not all written agreements require registration.
WHY HAVE A WRITTEN AGREEMENT?
- Legally valid before the court of law
- Creates clarity in terms that are agreed upon
- Helps to hold long-term relationships with vendors
- Prevents misunderstanding and miscommunication
- Avoids expensive disputes
- Gives you peace in business
WHAT IS AN ONLINE SAMPLE AGREEMENT?
Online sample agreements are own which are available on web browsers and which were uploaded by some third parties. Normally when a business owner or a CEO needs an agreement to sign with a vendor, he instructs his Admin Head or the HR to prepare one.
He immediately starts searching on web browsers, gets a sample format available online, changes the name and details and submits it to his boss. This is what is called online sample agreements.
Why not use online sample agreements for your business
- Who drafted the online sample agreement?
How do you know who drafted the online sample agreement? Many people paint art, especially portraits but not all portraits are considered the Mona Lisa. As such, everyone can scribble the agreement but that is not considered as a legal document. A proper Legal agreement should have been drafted by a legal lawyer who knows the legality and loop holes in it.
- When were the online sample agreements drafted?
An online sample agreement may be drafted a few years before then. How is that format valid now? The government often makes changes in the act and laws which are called amendments. May that online sample agreement becomes outdated so, the court does not accept the agreement. Hence, drafting an agreement with a legal lawyer is best.
- Laws vary from Country to Country:
Countries like the USA, Canada, and Russia use right-hand drive rules but in India, we follow left-hand drive rules. Comparatively, many rules vary from country to country. Now tell me, will you import right-hand drive cars in India? No, right then how do you use a random online sample agreement without knowing where the document was drafted because web browsers display the result from global data. (one country’s laws are not accepted in other countries so don’t copy the online sample agreement)
- What does the online sample agreement contain?
The downloaded online sample agreement may be written in the old language or extinct language for example in old English fader means father but in modern English fader means slider. Like this many words may be similar in an old and new language but the meaning of the word may vary. Hence, people only know the modern version of the language then how do they know what the agreement says?
- Terms and conditions are drafted based on their requirements:
The website development agreement states that the output will be given within 20 days and if you are running a steel factory, download that website development agreement, change the name details and sign the contract without noticing the time-period. After 20 days, if the customer files the case in the court against you with that agreement and asks for compensation.
The court gives the judgment according to the agreement. What do you do? The online sample agreement may contain different conditions so, do not use it for your business purpose at any cost.
- Important portions removed:
All companies keep their important details confidential, so the important portion of the agreement like the purpose, payment, termination, allowance, scope, legitimacy, etc. was edited and posted online. Without knowing about these important portions, if you bound an agreement you may lose some advantages.
If you wish to run your business without legitimate problems and misunderstandings with your clients or vendors you have to bound an agreement, drafted by a legal lawyer. Never copy the online sample agreement. A sample is just a sample, don’t take it seriously.