As your business grows, you will likely deal with many different types of contracts. This can be a challenging obstacle to overcome if you do not have previous experience working in this area. Contracts are used in many aspects of business and having knowledge about the most common legal agreements can help you protect your company from future lawsuits.
Three contract types business owners should know
Even if you do not have extensive experience with contracts, understanding the basic components of each type is a good starting point. Here are three of the most common business contracts:
- Employment contracts: Every time you hire a new employee, there should be an accompanying contract for them to sign. In the agreement, you should have all the details of their employment. This can include their wage, the title of their position and the duties they are accountable for.
- Non-disclosure agreement: If you ever want to disclose private information to a prospective business partner or another company having them sign a non-disclosure agreement may be necessary. This document will limit the risk of them revealing any information that you told them.
- Client service agreements: Whether your company sells products or performs services, having a service or sales agreement is crucial. This document will include what services or goods you will provide and when you expect to complete the job. It could also include the financial aspects of the deal. If you cannot fulfill your obligation, it may be beneficial to include a section outlining what the recourse will be.
Trying to protect your company from any lawsuits or liability can be challenging on your own. Seeking the help of an experienced business law attorney can help you fortify your company for the foreseeable future.