Companies enter into various arrangements and deals in the conduct of their affairs. Their attorneys ensure that these business deals are comprehensive, properly planned, and protective. A well-drafted and executed contract is important in business operations.
Here are some of the common business contracts that companies enter into:
o Employee Agreements – Contains the employer-employee contract agreement, which also includes the job offered and descriptions, job responsibility, salary and benefits, and the status of the job if it is “at will” or not.
o Confidentiality and Invention Assignment Agreement – This agreement ensures that business strategies, ideas, and other work products developed by the employee will remain confidential and remain the property of the company even when the employee leaves or their contract ends.
o Service Agreement: This agreement sets out the terms and conditions under which a service must be provided and details of liability and limitations of liability.
o Sales Contract – Gives the price, terms and conditions for the sale of goods, equipment and other products of the company.
o Confidentiality and Non-Disclosure Agreement: This agreement obliges the recipient of an informant to keep the information strictly confidential and use it only to evaluate business transactions.
o Contractor and Consultant Agreement: This agreement is made for private contractors and consultants who work on a short-term basis with the company. This agreement contains the job description and the limits of your responsibility, including the rate of pay and your period of employment.
o Property Management Agreement – This agreement is made when the company rents or leases an office building, an apartment or a storage building as a warehouse.
o Partnership Agreement – An agreement made by business partners that specifies the amount of contributions each member has, each member’s percentage of the profit, and the terms of the split.
There are several other agreements that a company can get involved in throughout its operations. Business agreements and contracts can be advantageous for business as they can increase profits, gain respect and multiply prospects. But bad contracts can be disastrous and can sometimes cause business to go down.
To make better contracts, the following tips may be helpful:
o Make a clearly written contract detailing the responsibilities of each party.
o Make sure all key statements and representations are explained. Avoid omissions and incomplete terms.
o Study model contracts to learn the structure and language used.
o Prepare a form tailored to your needs.
o Write the draft of the contract yourself and consult the lawyer.
o Take into account the required legal terms, clauses, structure and language of the contract.
o Attached an addendum or annex to the main contract as a basis for specific documents for different transactions
o At the end, include miscellaneous or “repetitive” clauses in the contract.
The goal in drafting a contract is to have a clear meaning and understanding of the deal. To achieve this, it is necessary to use clear and concise language because the key to a good deal is a well-written contract.