lala.leena@yahoo.com
Asked May 06, 2016

Questions about online platform.

  • 1 Answer
  • 246 Views

hello i want to make an online platform dealing with street vendors. My question is 1. how to get information about vendors? 2. i want them to pay 100 rupees as entrance fees so can i get this from them without any legal objection? 3. do i require to form a company or an agreement with these vendors is sufficient?

Answer 1

  • how to get information about this vendors as i want to cover whole Delhi so i need contact of vendors of Delhi 's each local area. 
  • Answer: There is, so far, no database of street vendors maintained by the government. There has been a Scheme started for this in Delhi, but it has not been implemented yet. Thus, we will not be able to help you on this point, from a legal point of view.    
  • i want them to pay 100 rupees as entrance fees so can i get this from them without any legal objection?
  • Answer: Yes, you can ask them for an entrance fee, however, there has to be a reason cited for this fee. It is better if there is an agreement or contract between you and the vendor, on paper, about the reason behind the fee, the details of the app/online platform, and also mentioning any disclaimers if you wish to add.  You are essentially making a contract with the vendor. For a contract to be valid, there has to be an offer, an acceptance of the offer and a consideration (amount/money). Here, the offer you will be making is a service: a platform to the vendor to increase his customer base. And the entrance fee can be the "consideration"     
  • do i require to form a company or an agreement with these vendors is sufficient?
  • Answer: This will depend on how you plan on running your online platform, your future plans. Companies are made in order to raise capital. Suppose I want to make a Product X, but I only have the idea, I don't have the money for the infrastructure, website designing etc. So to raise that money, I will have to create a company and raise money through shares etc.  So you will have to see that and accordingly make a decision.  If you decide to make a company, then it is advisable that you create the company before you carry out any agreements and other relation actions. There is now an option of a one man company available. You can find out more about One Man Companies on this link. But creating a company is not compulsory for an agreement with these vendors. However, do note that if you do this (that is, if you don't create a company and enter into an agreement with each vendor), then you will be responsible to each vendor in your personal capacity, whereas if you create a company then the company will be liable to the vendors (because in the eyes of the law, a company is a juristic person), and the agreement will be between the Company and the vendor, not you and the vendor.  This is a technical legal issue which we understand might not be very easy to understand at first. Let me try to simplify it with an example: Vijay Mallya is a person, and Kingfisher is the company. If A has a contract with Kingfisher, and they fail to pay A, then the case will be against Kingfisher, not Vijay Mallya, even though Vijay Mallya owns majority of the shares in Kingfisher.
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