You’ll have to work with various forms of corporate arrangements if you’re a business owner. This could be anything from a bill of sale to a lease to an employment agreement, depending on your company. Some of the most common kinds of contracts for businesses are mentioned below.
General Business Contracts
General business contracts include matters regarding the formation of your business, co-owner partnerships, general business matters, and third-party relationships. The most common ones are:
Agreement in a Relationship
A collaboration agreement defines the arrangement between business partners and their commitments and responsibilities to the organization.
Agreement on Indemnity
The purpose of the indemnity arrangement is to transfer the probability of damage from one party to the other. For starters, if the driver is into an accident while operating the rental vehicle, the driver of a car rental business is typically forced to sign an indemnity clause to cover the company against any lawsuits or fines.
Property or Equipment Lease
These contracts dictate the terms and conditions for a building or piece of equipment, including monthly fees, deposits, conditions, repair conditions, and other relevant things.
Agreement with Joint Ventures
These contracts establish the alliance and liabilities between the parties that wish to enter into a joint venture.
Agreement of Licenses
A license arrangement sets out the conditions through which one party may use property held by another party. This includes the use of intellectual property like patents and trademarks and copyright for written or visual material.
Buying and Selling Agreement
A buy-sell deal also referred to as a buyout agreement, determines what occurs to the share of a company owner when the owner dies or leaves the business. These deals generally grant the surviving owners the opportunity to purchase the percentage of the leaving owner.
Sales contracts are legal agreements that include the acquisition and selling of land, products, and services and lay down, if applicable, the legal basis for the transfer of ownership. Few famous contracts for selling include:
The Bill of Sale
In exchange for money, a bill of sale passes ownership to a piece of property from one party to another. It is widely used to record the selling of more expensive objects such as cars, vessels, or artwork. It may also be used for personal property items such as less valuable furniture.
A purchasing order is a legally binding contract submitted to a vendor by a buyer obliging the buyer to purchase the products or services as set out in the purchase order.
Agreement of Security
To obtain a loan, a security arrangement pledges an item or piece of property as leverage. The wealth is forfeited to the investor in the case of a default.
All areas of the employment relationship should be carefully recorded for every personnel of a company. Few examples of contracts for jobs widely used include:
- General Employment Contract The interaction between you and your employee, including job period, pay, wages, grounds for termination, and any other aspects that concern your company, such as possession of the work generated, is outlined in an employment contract.
- Non-Compete Agreement A non-compete arrangement defines a span of time in which, if an employee leaves the company, they are forbidden from competing with your company.
- Independent Deal with a Contractor Companies utilizes this contract to recruit someone to deliver a certain service or operate on a specific initiative. It points out the terms and conditions for the job being provided and can establish a partnership for IRS purposes distinct from a working relationship.
Any company owner would have to consider business contracts and work with them. These contracts can, in certain situations, be self-explanatory and simple to understand. But if you are confused about a contract or what you would need for your particular company, you should talk to an attorney experienced in small business law.