The court cannot consider legal and actual intent to be deception simply because it is not mixed. In addition, the court cannot compare a license to deception for the sole reason that the court believes the parties should have a lease agreement.  There are guidelines for checking whether the contract is a fictitious contract or not: the Indian Contracts Act 1872 contains different types of contracts, such as indemnification, suretyship and deposit. These are also representative contracts such as agency and partnership. But even though it`s so exhaustive, there are some barricades for a contract. For example, these are not fictitious contracts and zero-hour contracts. The Indian Contract Act was implemented in 1872, and from then on, situations changed dramatically. Since the law is dynamic, it must develop accordingly, as “The Teaching of the Living Tree” says. That is why there is an urgent need to discuss and verify the feasibility of these treaties. This research work consists in clarifying the concepts of these contracts. It aims to bring out the subtleties and to look at all the nuances of the treaty. The paper attempts to examine fake contracts and make a critical analysis while sticking to our country`s current scenario.
In the event of prosecution, employers face civil penalties of up to $33,000 per violation, and those who enter into false contracts can also be held personally liable if they supported and facilitated the violation. They will be held liable for a civil fine of up to $6,000 per violation. A fictitious contractual agreement is entered into when an employer attempts to disguise an employment relationship as an independent contractual agreement. This is usually done to avoid liability for employee claims. In the famous case of “The Management of Bokaro Steel v. Werke, represented by Bokaro”. It was argued whether or not the contract between management and the workers` association was a fictitious contract. It was found that there had been no prior invitation from management to perform maintenance on the machines, that they appeared to be false and that they could not be accepted as a reason for the declaration of the contract as Sham. It is not necessary to say, but there are certain advantages that the employee also enjoys when concluding fictitious agreements, such as for example. B the perception of an excessive hourly rate to compensate for losses such as superannuation and other benefits.
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