Promoters Contract for the Purchase of an Industrial Plot for setting up Industrial Unit of the Proposed Company
PROMOTERS' CONTRACT FOR THE PURCHASE OF AN INDUSTRIAL PLOT FOR SETTING UP AN INDUSTRIAL UNIT OF THE PROPOSED COMPANY ABC LTD.
THIS AGREEMENT is made on ______ day of ____________ between Mr. A, son of Mr. ____________, resident of ____________; Mr. B, son of Mr. ____________, resident of ____________; and Mr. C, son of Mr. ____________, resident of ____________ (hereinafter referred to as "promoters") of the one part, which expression shall, unless repugnant to the context, include their heirs, legal representatives and assigns; AND Mr. "V", son of Mr. ____________, resident of ____________ (hereinafter referred to as "Vendor") of the other part, which expression shall, unless repugnant to the context, include his heirs, legal representatives and assigns.
WHEREAS the promoters have been engaged for quite some time in the past in promoting and forming a company to be known as ABC Ltd., which name has been made available to the promoters by the Registrar of Companies, ____________, consequent upon which they have filed with the Registrar the memorandum of association and articles of association for registration of the company;
AND WHEREAS the memorandum and articles of association of the proposed ABC Ltd. empower the company and its directors to enter into agreements on its incorporation on the lines of the agreement entered into by the promoters for the purchase of land, plant, machinery, equipment and for hiring the services of persons required for and in connection with the formation and incorporation of the company;
AND WHEREAS the Vendor is the absolute owner of an industrial plot of land measuring ____________ and situated at ____________, and is desirous of selling the same;
AND WHEREAS the promoters are desirous to buy the said plot of land for the proposed company ABC Ltd. to set up an industrial unit on its incorporation.
NOW IT IS AGREED AND DECLARED BY AND BETWEEN THE PARTIES AS FOLLOWS:
1. That the said Vendor shall sell and the promoters shall purchase the industrial Plot No. ____________ situated in the ____________ Industrial Area, ____________, bounded on the North by ____________, on the South by ____________, on the East by ____________, and on the West by ____________, in consideration of the payment, by the promoters on the date of this agreement, of the sum of Rs. ____________, and the balance of Rs. ____________ on the date of the appearance of the Vendor and the promoters before the Sub-Registrar, ____________, at the time of registration of the deed of sale pursuant to this agreement.
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About this template
What is this template?
This document is a two-part pre-incorporation contract consisting of an initial purchase agreement by promoters and a subsequent adoption agreement for the company. It includes specific provisions for price adjustments based on boundary errors and a formal schedule of land for description.
When should you use it?
Use this template when individuals are securing an industrial plot before their company is legally formed, and follow it with the provided adoption agreement once the certificate of incorporation is received. Use a standard Sale Deed instead if the company is already registered at the time of the initial land purchase.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Purchase Consideration | Specifies the initial deposit amount and the balance payable upon registration of the deed before the Sub-Registrar. |
| 2 | Title Verification | Obliges the Vendor to satisfy the promoters or ABC Ltd. regarding land title within one month of execution. |
| 3 | Expenses of Sale | Requires both parties to share sale expenses equally and mandates the purchaser provide stamp duty funds 14 days before completion. |
| 4 | Delivery of Possession | Mandates the Vendor deliver actual physical possession of the plot to the promoters or the company upon final payment. |
| 5 | Error or Misdescription | Permits price adjustments for area discrepancies and prohibits contract avoidance based on misdescriptions of boundaries. |
Who it's for
- promoters acquiring land for a public limited company that has not yet completed registration with the Registrar of Companies
- a vendor selling industrial land to individuals acting on behalf of a proposed corporate entity
- directors of a newly incorporated company adopting a pre-incorporation land purchase contract
How long it runs and how it's signed
Law it's drafted under
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