Settlement of Family Business | Deed | Legal Draft

Settlement of Family Business

This Deed of Family Arrangement is executed on this .......... in the year 2013 between :

A B S/o MN aged .......... years, occupation .......... R/o .................... (hereinafter called as the first party) and CD S/o XM aged .................... years, occupation and R/o .................... (hereinafter called as the second party)

WHEREAS

(1) The first party has started and carried out the business and undertaking described in Schedule ‘C’ by his own initiative and efforts with his own capital and funds.

(2) The second party, who is son of the pre-deceased son of the first party and residing with him under the care and parentage of the first party and assisting him in conduct of the aforesaid business for which he was being paid share in profit. The second party thus having contributed his labour and skill for the development of the business rendered valuable services for the same and rendered himself entitled for an equal share in the said business. It has been settled and decided to distribute the business amongst the parties so also the properties. The first party shall hold the share in business and properties described in Schedule ‘D’ and the second party shall hold the share in business and properties described in Schedule ‘E’.

(3) The movable and immovable properties, which is also described in Schedule ‘C’ have been acquired by the first party out of the funds of the said business in his name and for his use and benefits.

NOW THIS DEED WITNESSETH AS FOLLOWS :

1. The second party shall hold, own and possess as full and absolute owner of the business and properties described in Schedule ‘E’ without any demand or claim by the first party any account whatsoever for which, he has expressly granted, conveyed, transferred and assigned by the first party.

2. The business and properties have been distributed amongst the parties to this deed. It is hereby decided and declared that the first party hereinafter shall hold, own and possess as full and absolute owner of the business and properties described in Schedule ‘D’ and the second party shall not interfere in the same and he has relinquished his rights in the said part of business and properties described in Schedule ‘D’.

IN WITNESS WHEREOF the parties to this DEED have put and subscribed their respective hands in presence of witnesses on this .......... day of .......... in the year .......... at ..........

Witnesses

1.

2.

                                            Signatures

                                            First Party

                                                                                                                                                                      Second Party

Schedule ‘C’

Schedule ‘D’

Schedule ‘E’