Legal Advice

How to check authenticity of company

Question: I will have to sign an agreement with an entity (company/firm etc. ). The entity is. Not finalized yet and situated on the other state where it is not possible for me to visit. They will obviously say that that are company or firm etc. Then how to be confirmed if they are what they say and are not a fraud. How to know if an agreement is valid or not? Is it necessary for all parties to have their signatures in original papers? What is the legal way to get back the paid money from any fraud company?

Advise

You should know about the general terms of agreement adopted by the company or registered firm. They prefer to make an agreement with the standard form of contract. This standard form contains all the terms and conditions of the agreement and bears a clear identity of the company or firm.

When you sign an insurance deed you would have noticed that all the terms of insurance and identity of Insurer Company are given in the form, this form is called the standard form of contract. When all the terms are printed in the form then you have no choice to alter or amend it in your favour. You have only one chance i.e. to make a contract or not.

You should contact the company or firm and ask for a standard form of contract deed. On receiving such deed you should enquire about him and proceed cautiously. If you found any doubt then send him a letter for verification instead of oral conversation.

All the agreements are valid under the Indian Contract Act, which was made between parties; it does not require that one party should be registered. According to section some sections of the Indian Contract Act, some agreements are invalid e.g. agreement with minor, consent taken by fraud, misrepresentation, undue influence agreement for illegal activities etc.

A written agreement is void in devoid of signature of both parties to the agreement. Because without signature it can’t be proved that both parties have given consent towards the agreement. Signature is an essential part of a valid written contract.

You can civil or criminal or both proceedings simultaneously. File civil suit for recovery of money under CPC or file suit for the performance of the contract under the Specific Relief Act. You may file a criminal case for cheating.

Shivendra Pratap Singh

Advocate

High Court Lucknow