Ranjana 21 August 2015

Legal value of an agreement on stamp paper

HI,

One of our customers have defaulted to make their outstanding payments due to financial crisis. Now after mutual discussion, they have agreed to pay 40% of the amount. I want to know, if we take a promise/agreement from them in writing on a stamp paper (Rs. 100 or Rs.500), how much value will that stamp paper agreement will hold in the court of law. In case he defaults again, can we produce this stamp paper agreement in the court to file a case. Also, what are the other means to make this agreement to have legal validity... for eg. getting it registered in the registrar office.

Please help.

Thanks.

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5 Replies

puja saxena (private practice) 21 August 2015

Yes you are right you have to make an agreement for the same so that there should be binding effect of the agreement on both of you for future prospects

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 21 August 2015

Minimum stamp paper value Rs.50/-

Ranjana 21 August 2015

Thank you both for your valuable advices. However, I also want to know if this promise on a stamp paper by the customer will have any legal value, means can we use it to file a case against them, in case they default or should we register this agreement... if yes then how do we register such an agreement.