RAMANATHAN (Company Secretary) 14 July 2010
Dear All,
I have noticed in many Service Agreements , which mentions that the Agreement is on a "principal to principal" basis.
Does "principal to principal" mean that the Service Provider would work on an independent basis, and that there shall not be an employer-employee relationship, principal andagent relationship.
Can anyone throw some lights as to what is the meaning of "principal to principal basis".
Thanks & regards,
Ramanathan
Adv. G. A. Gagdani (ADVOCATE AND LEGAL CONSULTANT) 14 July 2010
in the financial field, principal to principal means that the persons ultimately obligated by contractual
commitments are the signatories to the contract, whether or not they directly negotiated the drafting of terms.
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