In India, it is a common misconception that agreements must be written on stamp paper to be considered legally binding. However, this is not entirely true. Agreement on plain paper is valid in India, as long as certain conditions are met.

According to the Indian Contract Act of 1872, any agreement, whether written or oral, is considered legally binding as long as it fulfills certain criteria. These criteria include offer and acceptance, consideration, legal capacity, and free consent. These elements must be present in any agreement, regardless of whether it is written on a stamp paper or plain paper.

However, it is important to note that there are certain advantages of using a stamp paper for agreements. One of the benefits is that stamp papers serve as proof of payment of stamp duty, which is a tax levied by the government on certain legal documents. The stamp duty varies depending on the state, but usually ranges from 0.1% to 8% of the value of the agreement.

Using stamp paper also helps to avoid disputes related to the validity of the agreement. In case of a dispute, the court may require proof of stamp duty payment. If the agreement is written on a plain paper, it may be more difficult to prove the authenticity of the document.

To ensure that an agreement on plain paper is valid in India, it is recommended to include all the necessary details such as the names of the parties involved, the terms and conditions of the agreement, the consideration provided, and the date of execution. It is also advisable to get the agreement notarized by a notary public to add an extra layer of authenticity.

In conclusion, while it is true that agreements on plain paper are valid in India, it is advisable to use stamp papers for important documents to avoid potential disputes. It is important to ensure that all legal requirements are met, and the agreement is notarized to provide additional evidence of its validity.