Crafting a meticulously detailed contract is paramount for encapsulating the terms and conditions governing parties involved. A legally sound document not only safeguards interests but also serves as a cornerstone for various transactions, be they commercial ventures or otherwise. While adhering to a standardized format is customary, there are instances necessitating tailored adjustments to ensure absolute clarity and comprehension of the contract’s stipulations. Hence, it is imperative for both individuals and enterprises to collaborate with seasoned attorneys and law firms proficient in the art of precise legal drafting.
Now, you can get templates of all the contracts you require from various websites or through a google search, but are they really enough for your business to be protected from a breach that might severely impact you or your business. How would you determine which contract your business requires. Below is a list of some of the most common contracts sought out by businesses, but which contract is applicable and what clauses would protect you might change the contract and give it a very different format. Here are some of the popular contracts that businesses require.
- JOINT VENTURE CONTRACT
A joint venture contract or agreement underlines terms and conditions based on which two companies decide to go into business. Some of the basic clauses included are the percentage of ownership, profit and losses allocation, the power to make a decision, and the future consequences of the dissolution of a partnership.
- NON-DISCLOSURE AGREEMENT
A non-disclosure agreement is signed between two parties (companies or a company and an employee or between a company and an independent service provider) to maintain confidentiality about the company’s secrets. Upon disclosing these secrets to another company or employee, the company or employee is bound by the NDA to keep certain matters completely confidential.
- INDEPENDENT CONTRACTOR AGREEMENT
Independent contractor agreements talk about the many aspects including compensation, taxes, and pay that is slightly different for independent contractors who are not full-time employees at a firm or company.
- SHAREHOLDER’S AND STOCKHOLDER’S AGREEMENT
A shareholder’s or a stockholder’s agreement is one that exists among the shareholders or stockholders of a company. While bigger companies bind shareholders by their constitutional document, for smaller companies like start-ups, the SHA is substituted for the constitutional document.
- OPERATING AGREEMENT
An operating agreement is the one that carries terms and conditions, regulations, and provisions that are to be followed when taking financial and functional decisions for the business. When the members of the limited liability company or LLC sign the agreement, they are legally bound by the terms of this contract.
- CONSULTING CONTRACT
A Consulting contract is for individuals who work as consultants in a firm. Consulting contracts include terms related to the nature of work, their role, and the length of the period of the contract between the company and the individual among other things.
- EMPLOYMENT CONTRACT
Employment contracts are quite popular and are signed by the employee for the company that states a few terms and conditions that bind the employee with the company. This may include a period of mandatory service, payment, appraisal, etc.
- POWER OF ATTORNEY
Power of attorney is a document that permits the beneficiary to act as a medical, legal, or financial decision-maker to a person on behalf of another person. The power of attorney gives the power to the person to take important decisions pertaining to the above-mentioned matters.
- OTHER TYPES OF CONTRACTS AND AGREEMENTS
There are several other different types of businesses with other contracts and agreements that have not been listed above. Some of them are business sales agreement, bill of sale, non-compete agreement, articles of organization of a company, and many more.
For more information on which contract would suit your business or for information on any other contract, please reach out to us at or schedule a free consultation.
