An investment contract is concluded between a company that needs financing and an investor willing to provide such financing. As a general rule, investors benefit from equity shares or other rights instead of their financing. An investment contract contains the conditions that govern such a relationship between the parties. For example, he invested in a startup and got 49% of the stake in return. Such participation would entitle A to the right to vote and enable him to participate in the operation of the company. He would also be able to get returns on participation if the startup did well. An investment contract describes the manifestation of this relationship, the rights and obligations A, the rights conferred on it, etc. An investment contract is a document frequently used to account for the terms of the relationship between the promoters of a company and the investor. Disputes over ownership and control, returns on equity, etc., may arise. As a general rule, mediation and arbitration should be preferred to a dispute as a method of dispute resolution. For the establishment of an effective investment contract, the following guidelines should be followed: an investment contract is concluded in order to document the terms of an investment agreement or transaction.
It allows companies that need resources to bring them together without problems. It also allows investors with excess funding to invest that money in profitable businesses. An investment contract is concluded in order to adapt the needs to the requirement. These are widespread in the business world and therefore need to be carefully crafted. As a general rule, an investment contract contains the names of the parties, the date of entry into force, the rights and obligations of the parties, the amount of investments made, the participation or any other right granted to the investor, as well as standard platform clauses such as waiver, notification, appeals, salvatorial clauses, dispute settlement and legal choice. Below are the main conditions of an investment agreement:. . . .