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Professionally drafted agreements for every need — business, property, family, and personal. Legally sound, enforceable, and tailored to your requirements.

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What is an Agreement?

An agreement is a mutual understanding between two or more parties regarding their respective rights and obligations. When an agreement is made enforceable by law, it becomes a contract. Under Section 2(e) of the Indian Contract Act, 1872, "every promise and every set of promises, forming the consideration for each other, is an agreement." Agreements form the backbone of all commercial and personal transactions — from renting a house and buying property to entering business partnerships and licensing intellectual property.

A well-drafted agreement anticipates potential issues, clearly defines each party's obligations, allocates risks fairly, and provides mechanisms for resolving disputes. Whether the agreement is a simple rent contract or a complex shareholders agreement, professional legal drafting ensures it is comprehensive, unambiguous, compliant with applicable laws, and enforceable in court. At Legitax, we draft all types of agreements tailored to your specific requirements, ensuring your interests are fully protected.

Types of Agreements We Draft

1. Rent / Lease Agreement: A legally binding agreement between a landlord and tenant defining the terms of renting a residential or commercial property — rent amount, security deposit, tenure, maintenance responsibilities, lock-in period, notice period, and termination conditions. Registration is mandatory for leases exceeding 11 months.
2. Leave and License Agreement: A permission-based agreement where the licensor grants the licensee the right to use a property for a specified period without transferring any interest in the property. Commonly used for residential and commercial rentals in Maharashtra and other states. Governed by the Indian Easements Act, 1882.
3. Sale Agreement / Agreement to Sale: A preliminary agreement between the buyer and seller of an immovable property that sets out the terms and conditions of the sale — price, payment schedule, possession date, title warranties, and conditions precedent. It precedes the execution of the final Sale Deed.
4. Partnership Agreement / Partnership Deed: A document that establishes the terms of a business partnership — capital contributions, profit/loss sharing ratio, duties of each partner, decision-making process, admission and retirement of partners, dissolution procedure, and dispute resolution. Governed by the Indian Partnership Act, 1932.
5. Shareholders Agreement: An agreement between the shareholders of a company governing their relationship, rights, and obligations — voting rights, board composition, dividend policy, transfer restrictions (right of first refusal, tag-along, drag-along), anti-dilution provisions, exit mechanisms, and deadlock resolution.
6. Joint Development Agreement (JDA): An agreement between a landowner and a developer for the joint development of a property. Defines the sharing ratio of constructed area or revenue, construction specifications, timelines, approvals responsibility, cost allocation, and default remedies. Stamp duty and registration are mandatory.
7. Memorandum of Understanding (MoU): A preliminary agreement that outlines the broad terms and intentions of the parties before a formal contract is executed. While not always legally binding, an MoU demonstrates the parties' commitment and serves as a framework for negotiating the definitive agreement.
8. Non-Compete Agreement: An agreement restricting one party from engaging in a competing business, soliciting employees or clients, or using proprietary information for a specified period and within a defined geography after the end of the business relationship. Must be reasonable in scope and duration to be enforceable in India.
9. Indemnity Agreement: A contract where one party agrees to compensate the other for specified losses, damages, or liabilities arising from certain events or actions. Governed by Sections 124-147 of the Indian Contract Act, 1872. Common in business acquisitions, service contracts, and insurance.
10. Settlement Agreement: A legally binding agreement to resolve an existing dispute or legal proceeding without going to trial. Records the terms of settlement — payment, actions to be taken, release of claims, confidentiality, and non-disparagement. Can be filed with the court for enforcement.
11. Prenuptial / Postnuptial Agreement: An agreement between spouses or prospective spouses regarding the division of assets, liabilities, maintenance, and other financial matters in the event of separation or divorce. While not specifically governed by Indian family law statutes, courts may consider them as evidence of the parties' intentions.
12. Gift Deed: A legal document that transfers ownership of movable or immovable property from the donor to the donee without any consideration (payment). Must be executed on proper stamp paper and registered with the Sub-Registrar for immovable property. Governed by the Transfer of Property Act, 1882.
13. Will / Testamentary Document: A legal declaration of a person's wishes regarding the distribution of their assets after death. Can be registered or unregistered. Must be signed by the testator in the presence of at least two witnesses. Governed by the Indian Succession Act, 1925 (for Hindus, the Hindu Succession Act, 1956 also applies).
14. Power of Attorney (POA): A legal instrument authorizing one person (the agent) to act on behalf of another (the principal) in legal, financial, or property matters. Can be General (broad authority) or Special (limited to specific acts). Registration is mandatory for POAs involving immovable property transactions.
15. Guarantee Agreement: A contract where a third party (guarantor) agrees to fulfill the obligations of the borrower (principal debtor) if the borrower defaults. Commonly used in loan transactions and business contracts. Governed by Sections 126-147 of the Indian Contract Act, 1872.
16. Arbitration Agreement: An agreement between parties to resolve their disputes through arbitration instead of litigation. Can be a standalone agreement or a clause within a larger contract. Governed by the Arbitration and Conciliation Act, 1996. Must specify the seat of arbitration, rules, number of arbitrators, and governing law.
17. Escrow Agreement: A three-party agreement where an escrow agent holds funds, documents, or assets on behalf of two transacting parties and releases them upon fulfillment of specified conditions. Common in M&A transactions, real estate deals, and online marketplaces.
18. Assignment Agreement: A contract that transfers rights, obligations, or interests from one party (assignor) to another (assignee). Used for assigning contracts, intellectual property, receivables, leases, or insurance policies. The consent of the other original party may be required depending on the nature of the assignment.
19. Term Sheet / Letter of Intent (LOI): A preliminary document outlining the key terms of a proposed transaction — valuation, investment amount, governance rights, conditions precedent, exclusivity, and confidentiality. Usually non-binding (except for exclusivity and confidentiality clauses) and serves as the basis for negotiating the definitive agreements.
20. Share Purchase Agreement (SPA): A definitive agreement for the sale and purchase of shares in a company. Covers the price, representations and warranties, conditions precedent, indemnities, non-compete obligations, and closing mechanics. Used in M&A transactions, private equity investments, and founder exits.

Benefits of Professionally Drafted Agreements

  • Legally enforceable documentation of the parties' rights, obligations, and remedies under the Indian Contract Act, 1872
  • Prevention of disputes by clearly defining terms, timelines, deliverables, and consequences of breach
  • Protection of confidential information, trade secrets, and intellectual property through appropriate clauses
  • Proper allocation of risks, liabilities, and responsibilities between the parties
  • Compliance with applicable laws — stamp duty, registration requirements, and regulatory provisions
  • Evidence in court — a properly drafted and executed agreement serves as primary evidence of the transaction
  • Clear exit mechanisms — termination rights, notice periods, and consequences of termination are defined upfront
  • Dispute resolution framework — arbitration, mediation, or jurisdiction clauses provide a clear path for resolving disagreements

Essential Elements of an Agreement

Parties and Recitals: Full legal names, addresses, and descriptions of all parties. The recitals (whereas clauses) set out the background and purpose of the agreement.
Definitions: Key terms used throughout the agreement are defined to avoid ambiguity. Includes defined terms like "Confidential Information", "Intellectual Property", "Territory", "Services", etc.
Scope and Obligations: Detailed description of what each party is required to do or deliver. The core of the agreement — covers services, products, deliverables, timelines, and performance standards.
Consideration / Commercial Terms: The price, payment schedule, invoicing terms, taxes (GST), late payment interest, and any variable or performance-based compensation.
Representations and Warranties: Statements of fact by each party regarding their authority, legal standing, ownership of assets, and absence of disputes. Breach of a representation can give rise to indemnification claims.
Term and Renewal: Duration of the agreement, commencement date, renewal terms (automatic or manual), and any lock-in period.
Termination: Conditions for termination — for cause (breach, insolvency) and without cause (convenience). Notice period, cure period, and consequences of termination including survival clauses.
Confidentiality and Non-Disclosure: Obligations to protect confidential information during and after the agreement. Defines what is confidential, permitted disclosures, and duration of obligations.
Intellectual Property: Ownership of pre-existing IP, assignment or license of newly created IP, restrictions on use, and IP indemnification.
Indemnity and Limitation of Liability: Indemnification obligations for breach, negligence, or third-party claims. Caps on total liability, exclusion of indirect/consequential damages, and carve-outs for willful misconduct.
Governing Law and Dispute Resolution: The law governing the agreement (typically Indian law), jurisdiction of courts, and alternative dispute resolution mechanism — arbitration or mediation.
Miscellaneous / Boilerplate: Standard clauses covering amendments, waiver, severability, entire agreement, notices, assignment, force majeure, and counterparts.

Our Agreement Drafting Process

  1. Initial consultation — understanding the nature of the transaction, parties involved, and key terms agreed upon
  2. Due diligence — review of existing documents, legal standing of parties, and applicable legal requirements
  3. First draft preparation — drafting the agreement with all necessary clauses, schedules, and annexures
  4. Legal review — internal review for enforceability, compliance, and completeness by our senior legal team
  5. Client review and feedback — sharing the draft for your comments, suggestions, and negotiation inputs
  6. Negotiation support — assisting in negotiations with the other party and incorporating agreed changes
  7. Finalization — preparing the final version on appropriate stamp paper with all schedules and annexures
  8. Execution and attestation — signing by all parties in the presence of witnesses where required
  9. Registration (where mandatory) — filing the agreement with the Sub-Registrar of Assurances along with the prescribed registration fee
  10. Post-execution support — providing certified copies and guidance on compliance obligations arising from the agreement

Documents Required

  • Identity proof of all parties — Aadhaar Card, PAN Card, Passport
  • Address proof — utility bills, Aadhaar, registered office address
  • Company/firm documents — Certificate of Incorporation, MOA/AOA, Partnership Deed, LLP Agreement
  • Board Resolution or Partner Resolution authorizing the signatory
  • Details of the transaction — commercial terms, timelines, and special conditions agreed between parties
  • Property documents (for property-related agreements) — title deed, encumbrance certificate, approved plan
  • Existing agreements, MoUs, or correspondence between the parties
  • KYC documents of authorized signatories
  • GST Registration Certificate (if applicable)
  • Stamp paper of appropriate value as per the applicable State Stamp Act

How it works?

01

Share your requirements

Tell us the type of agreement needed and share the terms you want to include.

02

Expert agreement drafting

Our legal expert drafts the agreement with all necessary clauses and legal protections.

03

Review & iterations

Review the draft, discuss changes with our lawyer, and finalize all terms and conditions.

04

Final agreement delivery

Receive the final signed-ready agreement on stamp paper or as an e-document.

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Frequently asked questions

We draft all types of civil and commercial agreements including rent/lease agreements, sale agreements, partnership deeds, shareholders agreements, joint development agreements, MoUs, service agreements, employment agreements, NDAs, franchise agreements, licensing agreements, loan agreements, settlement agreements, gift deeds, wills, power of attorney, share purchase agreements, term sheets, escrow agreements, and any other customized agreement required for your specific transaction or business need.

A registered agreement is one that has been filed and recorded with the Sub-Registrar of Assurances under the Indian Registration Act, 1908. Registration is compulsory for certain agreements — sale deeds, gift deeds of immovable property, lease agreements exceeding 11 months, and partnership deeds (optional but recommended). A registered agreement serves as conclusive evidence of the transaction and is admissible in court without further proof. An unregistered agreement that was required to be registered cannot be used as evidence in court for the transaction it pertains to, except as secondary evidence of a collateral transaction.

Stamp duty varies by the nature of the agreement and the state in which it is executed. Each state has its own Stamp Act or follows the Indian Stamp Act, 1899 with state-specific amendments. For example, a rent agreement in Delhi attracts stamp duty of 2% of the average annual rent, while a sale agreement may attract ad valorem stamp duty based on the property value. Certain agreements like NDAs and service agreements attract a nominal fixed stamp duty. We advise on the exact stamp duty applicable to your agreement based on the state and transaction value.

Yes, under the Information Technology Act, 2000, electronic signatures (including Aadhaar-based e-sign and Digital Signature Certificates) are legally valid and enforceable for most agreements. However, certain documents are specifically excluded from electronic execution — negotiable instruments, powers of attorney, trust deeds, wills, and sale deeds of immovable property. For agreements that can be executed electronically, e-signature platforms like Aadhaar e-sign, DigiLocker, and licensed e-signature providers can be used. The electronic record has the same legal effect as a physical document.

If a party breaches an agreement, the non-breaching party has several remedies: (1) Damages — claim monetary compensation for losses suffered due to the breach (Section 73-75 of the Indian Contract Act), (2) Specific Performance — seek a court order compelling the breaching party to fulfill their obligations (under the Specific Relief Act, 1963, available when monetary damages are inadequate), (3) Injunction — obtain a court order restraining the breaching party from continuing the breach, (4) Termination — terminate the agreement and claim damages for the breach, (5) Invoke the dispute resolution mechanism specified in the agreement (arbitration or mediation). The available remedy depends on the nature of the breach and the clauses in the agreement.

The timeline depends on the complexity of the agreement and the responsiveness of the parties involved. A standard agreement (rent agreement, NDA, service agreement) can be drafted within 2-3 working days. Complex agreements (shareholders agreement, joint development agreement, share purchase agreement) may take 5-10 working days for the first draft. The overall timeline including client review, negotiation, and finalization depends on the number of revision rounds and the speed of the negotiation process between the parties. We prioritize urgent requests and can expedite drafting when needed.