Tripartite agreement

balwinder (Querist) 01 August 2013 This query is : Resolved
sir i have a built up commercial property which i intend to lease out to a salon company on lease.however company wants me to sign a tripartite agreement between lessor i.e me, lessee i.e the company and the nominee i.e the franchisee.as per them company and the nominee are lessees collectively.as per the agreement nominee will pay the rent and the nominee if changed then the new nominee will pay the rent.however they mention that ultimate responsibility to pay the the rent shall be of the company only.please advise legally whether tripartite agreements safeguard the interest of the lessor in case of dispute between the company and its nominee ie the franchisee.and if it is not advisable to lease out property on tripartite agreement then why. regards balwinder singh

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Guest (Expert) 01 August 2013
Don't get entangled in the triangular net. When you are letting out on lease the property to the company, you should have the concern only with the company, involvement of any third person is not called for.

Better search for another hirer than to get the matter complicated without any reason to call for troubles for you in future, if the company is not willing to enter in to lease directly with you.

balwinder (Querist) 01 August 2013
please elaborate the legal hassles i can face in such an agreement.my only submission is that as the lessor company is a company of repute then why will it create an unsound legal agreement involving the company as wll as the nominee

Guest (Expert) 01 August 2013
Charity service is limited to providing clues and hints on the matter as a solution to the problem, not elaboration by wasting our valuable time and also to ignore the requests of other needy querists. You may better discuss the pros & cons in detail up to your satisfaction by hiring service of some local lawyer.

You are free to ignore the advice, if you are so confident about the so called reputed company. Better try to earn a personal experience by entering in to a tripartite agreement by induction of an unrelated party.

A simple question arises, when the company hires your property for its own business, why there is a need to include a third party?

Best of luck!

ajay sethi (Expert) 01 August 2013
enter into lease with company only . it should be company responsibility to pay lease rentals . yu are not concerned with the franchisee . better consult a local lawyer .

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