Do you remember AOL, the previous internet powerhouse in the United States?
AOL signed an agreement with Time Warner, which inevitably led to the end of the company. After losing more than $180 billion in the agreement during the recession, businesses started taking a closer look at agreements.
Business contracts play a big role in a company’s success. Keep reading if you want to learn about the most important ones so you don’t get sued or cut out of a deal!
Bill of Sale
If you’ve ever bought a property, you’ve signed a bill of sale to make it official.
A Bill of sale, or sales agreement, shows ownership of something. Often, two parties are involved with a bill of sale, the seller and the buyer. In some situations, a co-signer or partner may extend the number of parties involved.
This is a legal agreement that gives a new owner all the rights to their purchase. Aside from buying a building, business owners may sign a bill of sale to purchase company vehicles.
Although they may not seem like business contracts, retail store receipts are also a bill of sale. This is because it’s a description of the goods sold, who they were from, and how the buyer paid.
Amendments
When a contract has already been created but terms are changing, an amendment gets created.
Amendments are additions or changes to a previous contract. Although they are connected to older agreements, they are independent. These changes are often made to terms, definitions, and classes the company created in the past.
This is critical when businesses forget to put important info in a contract. Human error happens, and mistakes come up, and amendments are a way to resolve them before issues arise.
Franchise Agreement
Did you know that UPS, ACE, and Tim Horton’s all have something in common?
Each of these businesses has created franchises to help expand operations while saving money. This agreement establishes the roles of both parties involved in the contract and the rights of each group.
Many people work with commercial lawyers when they want to join a franchise agreement. Write the time, location, and procedures in a franchise contract; a lawyer can help.
Employment Agreement
Employment agreements are primarily regarded as offer letters, which can be exciting documents to sign.
Offer letters are written contracts that bind an employer and a new employee. After the interview process, they are given to job applicants and must be signed before starting.
Employment agreements should have a description of job responsibilities and goals. There should also be sections about pay, termination, and benefits. Most employment agreements follow a similar format, but they are tailored to each company and position.
Influencer Agreement
Influencers have always played a role in businesses and helped market brands they supported.
With social media, the world has evolved, and most people spend their time scrolling through their favorite platforms. When a business wants to hire someone, whether they are considered famous or not, they should create an influencer agreement.
Influencer agreements are legal company contracts. In these, companies must clarify their brand’s image, approval process, and expectations. Without this agreement, there is no way to hold people accountable if they don’t market the brand.
Photography Release
Running a business requires attention to detail, even in the most innocent of marketing attempts.
It may seem natural to take a photo of a team working, especially if the scene is perfect for marketing materials. However, before marketing agents start snapping any photos, they need to get a photography release.
Photography release contracts must be signed by the person appearing in the photo and the photographer. These releases should also include information about how the photos will be used and where they will be displayed.
These company contracts grow increasingly important if commercials get aired on TV or social media.
Partnership Agreement
Once more than one person is running a business, a partnership agreement needs to be made and signed.
Partnership contracts should have both parties’ roles clearly written. This agreement should also break down the contributions from each person and how profits and losses will get addressed. Running a business with a partner can relieve a lot of the pressure as an owner, but you need an agreement to set boundaries.
Keep in mind that agreements will increase in complexity as more people join the partnership.
Confidentiality Agreement
If your business gives employees or suppliers access to private info, a secrecy agreement gets signed.
Nondisclosures give businesses the right to take legal action if someone from the inside is sharing sensitive info. These agreements are common in the medical industry. They are also in all types of businesses trying to withhold their secrets to success.
Any information that could put a business at risk should come with an agreement.
Cover Your Tracks with Business Contracts
It may seem like you can’t make any decisions without creating business contracts, but you’ll be safer with them.
Business contracts can prevent you from getting sued or stop legal troubles before they grow. Whether you want to post a photo on social media or keep company info private, you can get legal protection with a written and signed agreement. The best part about legal contracts is that they can always get revised and amended if operations change.
Make sure you read our blog to learn more about owning a company and navigating legalities in your industry!
