The Rights Of A Hindu Widow In Husband’s Property
Family Dispute

The Rights Of A Hindu Widow In Husband’s Property

The Position Of Women In Society

The position of women in terms of proprietorship in any system of law is governed by the thought and the belief system of the community. Thus, the ownership status that a woman availed in the Hindu law did not just reflect the index of the Hindu civilization but also the appropriate yardstick of the culture of the Hindu race.

The Hindu Shastras assigned a role, to the widow and even to the women in general, both in her family and society, a state of dependence and submission. "Through independence, the women go to ruin, though born in a noble family.”

Widow’s Right Over Stridhan Before-1956

When a woman became a widow, the woman suffered an absolute and unrestricted right of loss of property, it didn’t matter whether the property had been acquired before or after the death of her husband. Thus, she was pushed to give up the properties without her will. Thus, her near relative could easily inherit her property.

Also read What is Divorce Mediation. 

Changes In The Law Of Stridhan, Post-1956 After The Hindu Succession Act 

As per the new provision, a widow is like a limited heir. Accordingly, she receives the property for her entire life but she is the owner of the property which is inherited as a tenant. However, her alienation right is limited. After her death, the property is not acquired by her heirs rather it passes on to the heirs of the last full owner thereof. Thus, the main feature of a woman's estate is: that the woman is a limited owner. To put it more clearly, she owns this property in the same manner as any other person can own the property subject to the basic limitation:

She cannot easily give up the corpus and; when she dies, it is acquired by the next successor of the last full owner. To cite a practical instance, in the Janki vs. Narayaswami, the Privy Council did observe: Her right is like the right of property, she holds the position of the owner; Her powers in that role are, however, limited. Until she is alive, no one has a vested interest in succession.\

Her disposal power on the property is subject to limits and it is the limit that goes to explain the nature of her estate. The limitations are not put up for the benefit of the reversioners. In case, there are no reversioners, the estate carries on to be a limited estate.

About The Relevant Provisions

The Widow Remarriage Act of 1856:  The various rights and interests which a  widow commands in her dead husband's property will end after her remarriage; and the other successors of her deceased husband, or some other person legible to the property after her death, will thereupon succeed to the same.
 

Hindu Succession Act, 1956: The widows who go on to remarry hold a right on their dead husband's property. The Hindu law felt it was a necessity in a situation where the widow had to sell her deceased husband's ancestral property. Situations arose where she needed money for giving charity or doing rituals in memory of her late husband. The wedding expenses of the daughter also led to a legal necessity.

The Rights Of A Hindu Widow - The Widow Remarriage Act of 1856:

The various rights and interests which any widow had held in the property of her dead husband shall, once she marries, cease, and the next successors of her deceased husband, or some other person entitled to this property after her death, shall thereafter succeed to the same. But, this Act was repealed. As per the Hindu Succession Act, 1956, widows who decide to remarry will have a right on their deceased husband's property.

Can Widow Claim Husband's Ancestral Property After Remarriage?

Further, the Mumbai High Court (HC) ruled that a widow who marries again need not give up her right over the ancestral property of her deceased husband. This got highlighted when a man (who was the brother of the deceased) took recourse to Section 2 of the Widow Remarriage Act 1856 and stated that his sister-in-law should be barred from acquiring her former husband's property as she had remarried. But, the HC decreed that she is still grouped under the Class-I successor of her deceased husband and thus should inherit the property.

The Claim Of The Hindu Widow Over Husband's Property

In a scenario wherein a Hindu widow purchased immovable property in possession as such of the estate of her dead husband out of the income of the estate, such property does not mandatorily become an accretion to the husband's estate. So the widow can dispose of it during her lifetime, and only when she feels during her lifetime a clear intention to consider it as an addition to her husband's ancestral property, or permits it after her death to remain undisposed of, that such property can become part of that estate.

When A Man Dies With More Than One Widow

In case a man dies with more than one widow, the widows have the right to invoke the law for acquiring and partitioning the property. Their right to informally divide the estate amongst themselves has been recognized by the Court.

What Are The Conditions to Expect In A Master Service Agreement?
Agreement & Contract

What Are The Conditions to Expect In A Master Service Agreement?

An MSA or master service agreement is an agreement between two parties wherein they agree and come to terms on the majority of points that will govern their future transactions and mutual actions. An MSA facilitates the two parties to negotiate future transactions and agreements more quickly and effectively.

This happens because the two companies take recourse to the strong foundations of the master agreement while carrying out their future transactions. So, they need not negotiate terms again and again.

The service of a master's is very common in the professional services industry. It makes you work with the service provider, project by project without re-checking the various rules and regulations about how you both should work together.

This way it serves the purpose of the onward momentum of the ongoing relationship, irrespective of the type of the project they are working on and so on.

Thus, MSA is an understanding between us and our clients on what we consider important and how we will carry out a healthy, moral and mutually gainful professional business relationship.

The Kind Of Terms & Conditions In An MSA Agreement

The legal department of every company has a somewhat different idea about what should or should not be contained in an MSA. But in case you’re going to hire a professional services team, there is a strong likelihood of some common ground and some terminology that you’ll need to understand.

Though the titles and ways of formatting are likely to differ from company to company, the MSA your company receives from any professional firm may contain the following sections:

  • There may be one section explaining what the Master Service general terms include or do not include in matters of project-specific agreements such as statements of work
  • Terms of Confidentiality
  • Rights to Intellectual Property
  • When, how, and how much the relationship can be discussed or disclosed
  • The conditions under which the work will be done;
  • How the client will review, reject, or approve deliverables
  • What each party will be responsible for providing or maintaining throughout the term of the services agreement
  • Consequences/implications of either party failing to comply with terms of the agreement
  • Agreement to refrain from soliciting each other’s employees or clients
  • Procedures for resolving legal disputes
  • Indemnification provisions in the event that either organization issued by a third party
  • Warranty or support information for work performed by the firm for the client
  • Insurance and/or security requirements for the service provider (and possibly the client)
  • Expectations about how the money, fees, expenses, and payments will be handled
  • Language relating to the MSA agreement’s term and how either party can terminate a specific statement of work, as well as how either party can terminate the MSA if necessary.

What Are The Expected Conditions In Master Service Agreement:

Let us divide the various sections to know in a better way of what to expect and why they are important:

1. The More General Terms

To begin with, there should be a section that clearly mentions that the Master Services Agreement exists in addition to contracts for specific services.  It should also mention that you are hiring the firm for some time to enhance your performance.  

Every project provided by the service provider to the client, such as training, website development, software implementation, and so on, is shown negotiated in a statement of work (SOW), which is a project-specific addition to the Master Service Agreement.

These spell out the problems to be addressed for every individual project, what all the overall scope include and what it doesn’t, about the team involved, crucial dates &s milestones, the overall price, the billing deadlines, and so on.

2. The Mutual Confidentiality

The MSA should include a section that establishes confidentiality protection. This is important because we’re into the client data and working so closely with their leadership teams on the details of their various aspects like sales, marketing, and the future company growth strategy.

On the other hand, firms will be frequently training, consulting, and doing such things with clients in a manner that requires us to share unusual aspects of how we successfully operate.    

This is so because what the clients can understand from our unique experience is hugely valuable, thus we expect the protection of mutual confidentiality for what we share.

3. About Intellectual Property Rights

There is a section on intellectual property rights. This typically states who holds the rights to various processes and/or deliverables before, during, and after the work is completed.

This addresses who holds the authority over the deliverables/work and how the service provider shifts ownership rights upon acceptance. It also states who is the owner of the processes and/or tools used to create the deliverables. These are commonly known as a firm’s intellectual property (IP).

In one way, we’re like a “knowledge factory,” constantly shifting know-hows and digital assets to the client organisation through a range of collaborative projects.

4. About The Disclosure Of Relationship

If you’re thinking of working with a professional services firm, you may want them to share instances of familiar work which they’ve done for companies with same type of needs or goals like yours.

As an adjusted agreement, you may consider language requiring the service provider to obtain your written approval before some parts of your collaboration come up in public-facing material. Service providers may be willing to accept this compromise.

5. How May The Work Be Performed    

It often happens in MSAs.  A section is included therein which spells out what each party will be responsible for throughout the time period of the relationship to complete the work successfully.  It is important to discuss these obligations beforehand so that everyone knows what they’re agreeing to.

 

 

 

Can A Share Purchase Agreement Be Rescinded?
Agreement & Contract

Can A Share Purchase Agreement Be Rescinded?

The world of business is characterized by the continuous buying and selling of shares. When someone buys a particular number of shares in a business, they ensure that there is no liability attached to their transaction. However, in some cases, liabilities may come up in the form of taxation after the transaction. This could become a significant drawback for the buyer.

The Meaning Of The Share Purchase Agreement

A share purchase agreement is signed between the buyer and seller. It is a legal agreement between the two parties which acts as approval of various sales & terms conditions that are mutually agreed upon by the two parties. As a matter of fact, the Share Purchase Agreement Companies Act of 2013 serves as the evidence for both the parties, the seller and the buyer, that the shares have been sold/bought legally.

Share purchase agreement consists of various terms & conditions that are discussed between the buyer and seller when the deal was finalized. Most of the share purchase agreements have the following data presented:

  • Name of the company
  • Par value of shares
  • Name of purchaser
  • Document or any form of warranties provided by the seller and the purchaser
  • Employee benefits and bonuses
  • Number of shares being sold
  • Details of the transaction
  • Identification agreement for unforeseen costs

Is It Possible To Rescind a Share Purchase Agreement?

Well, a share purchase agreement establishes that the buyer and the seller are conducting this purchase of shares on mutual agreement and consent from both the parties.

Sometimes, it is possible that the seller may not give all the details to the buyer when the purchase is done. In that situation, the buyer stands liable. This won’t be entertained by the law principles. In such a scenario, the buyer can quickly rescind or annul a share purchase agreement.

In order to rescind a share purchase agreement, a person should be induced into a contract due to a wrong interpretation of another party. The buying side can rescind or annul a share purchase agreement or clean damage.

However, it has to be proved that the intention was to deceive.

When the shares are rescinded, they will be reverted to the seller who is obliged to repay the amount for those shares.

 There are some actions which may revoke the right to withdraw.

In case, the party which makes the false statement establishes the contract /behaviour in a way that is not consistent with the intent of the withdrawal (such as wrong misrepresentation)

Or in case the party cannot be restored to its original position. (Suppose: If the company signs a fresh contract or is re-organised)

A delay in withdrawing from the contract after the deception is discovered. This too can obstruct the right to withdraw.

Real-Life Example of Rescinding a Share Purchase Agreement.

In order to understand it better, let’s see a real-life example where the court supported rescinding the share price agreement

It so happened that Elson Precision Holdings Ltd (the buyer) initiated a share purchase agreement with Hampson Industries plc (the seller) wherein it agreed to buy a share of the Seller (the target).

This sale was negotiated by the financial director of the seller and the interim (temporary) managing director of target and, as part of its due process, income and customer predictions were provided to the buyer.

The forecasts consisted of the growth in demand, which came from a major customer of the target who represented between 34% and 40% of the target’s annual turnover.

The process of selling began in the summer of 2009 with the provision of an information memorandum and, during the passage of time, added information (including customer forecasts) were provided to the buyer.

In April 2010, soon after the two parties decided on the final terms for the sale of the target, the primary customer told the CEO of the seller that they are thinking to terminate their supply arrangement with the seller.

This was not told to the people who were negotiating the sale, who continued to provide the buyer with predictions and various other information reflecting an under-the-process relationship with the customer.

An official notice informing the termination of the vendor agreement was given by the seller only on 22 June 2010.

The sale got completed on 23 June after which the negotiating team learned of the customer’s official termination and promptly told the buyer. 

When the share purchase document had been drafted, it did not include any forms of warranties, establishing that the forecast given to the customer was true. The forecast statements and all the other documents were not considered as a breach of warranty.

Also, the agreement consisted of an entire agreement clause based on actions that favour innocent or negligent misrepresentation.

The Judgement Of The Court

This issue was referred to the court and the judge ruled that, while the CEO had not himself given the wrong predictions to the buyer or instructed anyone else to make the buyer carry on. As per the principles of law, the CEO totally knew forecast which was provided to the buyer and also the reality that it was wrong and embedded with untrue information.

Despite that, he kept quiet about the discontinuation even though he knew the buyer would reply to the erroneous forecasts.

 

Master Service Agreement: How Is It Important in IT Outsourcing?
Agreement & Contract

Master Service Agreement: How Is It Important in IT Outsourcing?

Well, Master Service Agreement is very useful. It can also help a lot the companies which are into software development. Well, these companies when they use MSA, can accelerate their work by making easy the general contract rules for ongoing projects. At the same time, they do hold the power to make decisions.  

Say for instance that you’ve come across a good IT outsourcing firm or company. Besides, you own a complicated product that will have to through various phases of development. And your companies are required to work together for a long time. Perhaps, you have worked with this developer on a project which went quite well and you’re quite excited about working with them again.

With the help of MSA, the rules will become easier to understand for both parties and that too well in advance, so there is little confusion if any. It may also cut down the legal costs and the time & money that it takes to write new documentation.

Master Service Agreement: What It Is?

As per the definition, an MSA is a contract between an IT vendor and a customer that lays out the following: project expectations, responsibilities, roles, provided services, terms, and other important agreements.

The Uses Of MSA

MSA is put to use when a company and a software vendor decide to work together on a project for a considerably good period of time.

It also helps in cutting costs and prevents a lot of stress for all who are involved by lessening the need to renegotiate and re-read much of the already decided conditions again.

Writing the MSA in software development requires a lot of time and it involves a lot of work. However, once both sides agree on it, it can be utilized as a model for future projects.

Master Service Agreement - Who Provides It?

MSA is mostly created by an outsourcing company. Thereafter, it is forwarded to the client for review. It’s quite likely for software companies to cover the small points in the arenas of how a project is done.

Additionally, an outsourcing company can create and put up a Master Service Agreement with various important documents as a part of the package.

What Are The Contents of MSA?

A good MSA should include all the important and minute details so that all the business expectations are communicated properly and financial guarantees are provided to both parties.

Here we are showing how it works: It should be simple and easy for project managers to understand so they can manage the project well. Thus, the MSA document is usually split into the certain sections, shown as below:

There are three major ways to get paid when you write software:

Method: Fixed price. This may be the best way to work on projects which have detailed plans that are required to be done by a certain date. In this, usually the payment is made when a project is completed, a task is completed, or a phase is completed. It can also be paid once the product is used

The two things that really do make things happen are: Time and materials are (T&M). Well, the products which are flexible that don’t have a specific use are good for this. In this model, the employer makes the payment for materials and for the number of hours which the Engineers work.

A model for a devoted team. This type of payment is for the people who can effectively manage the core development team. Herein,  customer pays in every month, based on the developer’s hourly work on the project.

MSA also tells about how to take the service, the reasons as to why people don’t like it, and how to change and revise it. Other things that go in this section are: the costs of unplanned expenses, how they can be paid and how to transfer money.

Providers of Service

After the parties’ names, their official contact person information, and their legal (official) addresses, comes the most important part of the document: general conditions, which are very important.

The MSA Document must include the following things in the Provision of Services:

There are four main goals and objectives for all of your projects

  • The client’s expectations
  • Services are provided for each SOW
  • Clauses, fees, and processes that go along with order changes or SOW changes.

Performance Management Should Be Tracked

Every project should have an independent SOW. It should lay out how the two sides will act in operating processes and in which way will the project will be monitored.

In fact, the MSA can tell about the complete structure of software development. Some companies even add a Management Guide attachment that explains about the function of every person in the office.

Term and Clauses for Ending

The Master Service Agreement spells out how long should the developer and client work together. The MSA Document also tells when a contract can be terminated pre-maturedly.

On the other hand, there can be an automatic renewal process if both sides concur on it.

Intellectual Property: Its Rights And Ownership

This tells us about the results of work on projects under individual SOWs that fall under intellectual property. We also come to know who owns the copyrights and various other rights that come along with the project deliverables.

Besides, the paper should also tell us which software, inventions, technology and data were made before or during collaboration belonging to the software company.

Know All About The Service Agreement
Agreement & Contract

Know All About The Service Agreement

About Service Agreement 

A Service Agreement can be described as an agreement (in written form) between a service provider and a customer. Besides, a service contract which is also known as a general service agreement is a legally binding document that protects both the providers and customers.

This type of contract puts up what the provider can do, how long & how much they will be paid. Many of these service contracts also depict the rights and responsibilities of both the parties, for instance, liability and confidentiality rules. Many of them also mention what to do if one party breaks the contract.

Also, read How to Draft a Service Agreement?

Service Agreement – When Is It Needed?

A service agreement is made whenever your company gives to another company, a business to do or a service when your company hires someone. These agreements can be done for either one-time deliverables during a short period or long-term partnerships over a larger period of time.

Before you begin to consult, you should sign a service agreement. If you are writing a mutually beneficial service agreement, you can put up expectations and ensure that both you and the other person are protected under the agreement.

Who Is A Service Provider?

As we know about the service agreement, let us talk about service providers. Whether contractors or freelancers, you can do that too. In fact, you can provide any intangible service, from low-level work to high-level tasks like consulting. Service providers may encompass a wide range of people, but some common ones are:

  • Consultants for branding
  • Caterers
  • Providers of childcare
  • People who walk dogs
  • Those who work on their own as accountants
  • Some people work in the field of graphics
  • Hair Stylists
  • Some people do make-up
  • People who play music and DJs
  • They work in public relations
  • Some people work on the web
  • People who write and people who edit.

What is a Service Agreement?

Irrespective of how unique a service agreement may be, it usually has the same information:

Services: It tells about the general nature of services and often comes together with a schedule that talks about the scope of the work and the deliverables that will be made.

Compensation: This is the complete amount or the amount that the client is ready to pay to the service provider in exchange for the work. It may also hold a schedule.

Terms: It has the beginning and closing dates of the contract, or the time period (the number of days, weeks, or months for which) the contract is in effect, are called terms.

Ownership: This point makes it clear as to who owns any physical or intellectual property that was made during the project, whether the service provider or the client

Relationship: It states that the service provider is not an employee of the client

Liability: It clearly ensures that the client or the service provider is subject to only limited liability for any project parts that go wrong. This may include only Workers’ compensation, general commercial liability, and professional liability.

Insurance: It is a must for a service provider to have property insurance while doing their job. It states how either party can change the scope of work and how they must do so.

The Clause of Confidentiality: This clause can tell us if either party must keep the project confidential. It also tells us whether the service provider can work with one of the client’s competitors

The Clause of Non-Solicitation: This tells us if the service provider can or cannot get in touch with the client’s customers or peers. In this, it is clearly demarcated if the provider can outsource the project

Termination: This tells us how many days’ notice each party must give before ending the agreement.

You may like to read How to Write a Master Service Agreement?

How Can We Make a Contract for Services?

In order to make a service agreement, these seven things are to be done:

1. The Service Provider and Customer Ought To Be Named

As per this point, you should write down the legal names and mailing addresses of all the involved people

2. A Lot of Things Are To Be Do on the List

The main contract should make it clear what the services are. If it is a schedule that comes with a text, you will need to write down the scope of the work and any deliverables.

3. People should be aware of their pay

Also, along with the amount of money that you owe, you should also add payment dates or frequency dates.

4. Clarify About Who Owns The Thing

In case the service includes physical goods or may be intellectual property (IP), it should be clearly stated as to who owns them, the service provider, or the customer.

5. Keep in Mind, Whether Confidentiality or Competition

In case, the client doesn’t want that the service provider should talk about the project or work with various competitors, you should ensure that the provider knows the rules and must follow them.

6.  The Deal Should Be Executed

When both the parties agree to the terms and sign the contract, the agreement must be legally binding.

How Can We Create A Service Agreement? =

It is always better if you make an attorney write the contract, irrespective of whether you need to change a few things in the standard service agreement meaning or you want to make it a unique contract. Its always better to hire a lawyer to assist you with your legal problems because you can get many important things.

In case you need to add extra clauses to your contract, you need not use a contract template with standard language. A lawyer can assist you to change any part of your contract while ensuring that it protects your rights and binds both parties legally.

You may also read Service Agreement Vs Contract - How They Compare & Differ?
 

How to Draft a Service Agreement?
Agreement & Contract

How to Draft a Service Agreement?

Oral understanding cuts both ways. It can be risky, but it can also be beneficial sometimes. However, while meeting various service providers, your client may get muddled up with the scope of work you’ve stated.                 

You may miss out on including significant information, for instance, when extra charges apply. These mistakes and lack of understanding can cause disputes and also lawsuits if they aren’t properly written down. Thus, it is important to have service agreements.

The Need For A Service Agreement

When you buy things like a car, computer, etc., you usually get it straight away. It’s not like you have ordered something and you have to wait for it to arrive. You know precisely what you should expect and what you’re getting.

However, that may not be the case when you are buying a service. You can’t do there, what you do at a machine. There are various instances of long-term services for which the people pay, and they often pay the fee, or at least a part of it, long before they see what their money buys.

To cite an example, a developer can make customized software for a company. It may go through a lot many steps before delivering any work. Herein you will need to figure out what the company wants, design the software, install it, and test it and various other aspects.

A written service agreement will ensure that everyone is on the same page while the work is done. It also ensures that both people get their decided fees within the decided time frame.

Agreements are not there for each and every service. For instance, if you take your car to an oil change shop, you and the owner may agree on the price, what will be done, and when. But if the work is to be done over a long period of time, both parties need to write standards, goals, and prices to protect them. A large number of businesses and professionals are using service agreements.

How to Write a Service Agreement?

The following steps will explain how to write a service agreement:

‘Customer Agreement,’  ‘Client Agreement,’  ‘service agreement,’ or some other title that best fits your situation should be the title of the agreement

The name of your company should also be there in the title. For instance,  ‘Listing Agreement,’ is a contract that real estate brokers make when they agree to help people search for homes for sale

Suppose you hire an accountant, they may something called a ‘Tax Preparation Agreement,’ and so on

A service agreement can have various parts that can be standard. In fact, you can make what’s called a ‘Template’ which will include most of the things you’ll need most of the time

You may need to change your template in order to suit the specific arrangements you need to make with a single customer. Mostly, you can fill in the blanks in your template decision even before starting over with each new client.

What does a Service Agreement Include? 

Certain businesses may need extra sections. However, in general, a service agreement should include the following sections and topics:

Description of the People who have Agreed to the Deal

The people who are involved, their names and addresses should be at the top of your agreement

There will be some more information about one or both of the parties. Whether it is a business, an LLC, a corporation.

Those who are working as the general contractor nay say, “This is a contract between Somesh Jain’s Beautiful Homes, which is a limited liability company and is based at 100 Main Street, and Vinita Jain, an individual who lives at 100 Pine Street.”

A Clear Description of What Will be Done

Just remember that you can’t change your fee if you end up doing more work.

For example, a caterer should know for how long they should be at the event, there would be how many servers, how many people are to be fed, and other details of the food.  

You should list everything that has to be used in the agreement. And state clearly, how much time it will take to complete the agreement. In this way, the caterer can cover the agreement’s cost. (for instance: if only organic food is to be served, the product may cost more than conventional produce, and clearly stating the food as organic will enable the caterer to take its added expense into account).

There Should Be A List Of Fees and Payment Schedules

Make it clear whether the charges are hourly or weekly or flat-rate per project. You may also make it clear whether the price includes things like travel costs for a consultant who will have to go to different places at work.

The Contract Should Have a Due Date and Expiry Terms

There should be a date when both parties have agreed to the terms of a contract. Very frequently, the effective date is on which the one both parties sign the contract.  

Besides, you should include a work schedule. At the bare minimum, work done on a project should contain start and finish dates. As a project moves through different stages or steps, you can list other due dates as well.

For an instance, in an IT maintenance contract, ongoing services usually last for a year or six months. When that period ends, there are options to renew the contract.

There Should Be A Place Where People Can Sign

Service agreements should always & always be signed and dated by both or all the parties so that no one can say later that they didn’t sign. Besides, it’s a good idea to have the signatures notarized, as well.