Section 11: Contractual & Legal Readiness “Contracts & Legal Confidence Check of a Farm Manager”

11.1 Ability to Draft Comprehensive MoUs with Clauses; When you sign agreements, are they detailed roadmaps or just 2-page formalities? 👉 Example 1: House rental—do you write “rent ₹10k” only, or full terms (deposit, repairs, lock-in, notice)?

👉 Example 2: Farm MoU—do you include clauses for responsibilities, profit share, timelines, and exit?

11.2 Margin Money Deposits; Do you ask for investor margin money upfront, and how is it secured? 👉 Example 1: Buying a car on loan—buyer pays down payment first.

👉 Example 2: Contract farming—investor deposits margin to confirm seriousness.

11.3 Matching Investments; If manager and investor are both contributing, how is “skin in the game” balanced? 👉 Example 1: Joint business—one brings land, other brings money. 👉 Example 2: Partnership—both contribute proportionately.

11.4 Premature Withdrawal (by Company or Investor); If either side wants to walk away early, what’s the rulebook? 👉 Example 1: FD—break before maturity, penalty applies. 👉 Example 2: Job contract—notice period and exit terms defined.

11.5 Residual/Salvage Value Distribution after Contract Expiry; After contract ends (say 7 years), what happens to remaining assets—polyhouse frames, irrigation kits, plantations? 👉 Example 1: Leasing a car—after 5 years, either return, buy, or scrap value deducted. 👉 Example 2: Farm polyhouse—steel frames, drip lines still have value.