You can use it to execute a new agreement or some other purpose for what you bought. If the agreement requires a stamp paper of a higher value, this stamp paper can also be used by adding another (new) stamp paper for the rest of the amount. But if you accidentally use a stamp of a lesser value, you will also be required to deposit the amount of the difference only, and if you deposit that amount within the prescribed time frame, such a stamp cannot be cancelled. During the conclusion of contract negotiations, the implementation of the agreement comes into play through electronic signature, as inserted in the Information Act (Amendment) Act, 2008. According to the Business Standard newspaper, India`s finance ministry plans to amend a centuries-old Indian stamp law, in which stamp papers will only be valid for one year. The objective of such a change is to put an end to the misuse of stamp paper by preventing people from purchasing backdated papers in order to place their rights on the property in the future, even though no agreement was reached at that time. In addition, electronic stamp duty payment is proposed under the new law to verify the same issue. After the precedent and the requirement of stamp to make a contract legally applicable, it is equally important to understand the pillars of the contract through the provisions of Sections 4 and 7 of the Indian Contract Act,1872 (Law). In addition, agreements are the heart and soul of a company, they must be enforceable documents. The applicability of these documents is subject to the satisfaction of the provisions of the Indian Stamp Act,1899, read by the Registration Act, 1908. As a result, they should be duly stamped because they are, in the eyes of the law, a valid document.
Token Advance – When the house is closed for rent, the tenant sometimes pays the landlord a small advance of chips. The goal is to prevent the landlord from maintaining other potential tenants. The advance of the token blocks the property until one of the equal parts surrenders. Once the symbolic advance has been made, both parties will be ready to conclude the agreement. But if one party goes a sequel, then that party must benefit from the loss to the other party. As far as the duty of the state is concerned, it generally varies from state to state. Nevertheless, there is a general pattern that is followed. Let`s take a look, for example, at the stamp duty imposed by the Karnataka government.