4 Essential Business Contracts
Let’s face it, there are so many resources out there that business owners can get lost in determining what they really need. Near the top of your “Must Have” list, should be strong written agreements to protect your business. Here are a list of 4 types of contracts that are absolutely essential for every business.
1. NDA/Confidentiality Agreement
If you’re discussing information about your business that you wouldn’t want your competitors knowing, you definitely need a Non-Disclosure Agreement/Confidentiality Agreement in place. Even if the person signing this agreement isn’t necessarily your competitor, you wouldn’t want this person blabbing to your competitor – or anyone else for that matter.
2. Operating Agreement/Shareholder Agreement
Every business needs the equivalent of a partnership agreement between the owners of the business. This business contract serves as the rule book for how the business is going to be run and what are the rights and obligations of each owner. It also lays out how the company can bring in new partners/investors, how the company can kick out old partners, how decisions will be made, and of course, what percentage of the business each partner owns.
3. Client Sales/Service Agreement
If you’re selling a product or service to your customers, chances are you’ll have an agreement in place to govern how the sale or service process will be conducted. This is where your company will be clear about the payment schedule, refund policies, exchanges, upgrades, cancellations, etc.
4. Independent Contractor Agreement
If you hire a vendor or a contractor, you’ll need an independent
contractor agreement. This contract is for work that if being done for your business and are perfect for hiring a branding company to design your new logo, hiring a bookkeeper, or hiring an agent, for example.
To Wrap Things Up...
The details of each contract very much depends on the purpose of the agreement and how it will be used. You could even have an contract attorney, draft these contracts so that they become your businesses’ standard contract for those specific transactions. This way your contract can be recycled while knowing you’re still protected.