Every Business Should Have These 5 Contracts!

Contracts are vital to the operation of your business. They can help you avoid legal disputes, safeguard your IP, and keep your company’s interests at the forefront of every deal, to name just a few examples. To make the most out of your day-to-day business dealings and protect your future interests, every company should be prepared to use these essential legal contracts.

  1. Operating Agreements

While operating agreements are most useful to startups and young businesses, they can always be introduced or revised later in the game for some added security. These contracts are mainly used to make sure all business owners or partners are on the same page. Your comprehensive operating agreement should define the roles and responsibilities of each founder, establish some goals for your company, and include a conflict resolution clause to prevent disputes amongst yourselves.

  1. Leases

Leases are among the most common—and most important—contracts used in business. You can use lease agreements to rent out a property for your business or lease equipment you will need to perform specific tasks. To make sure a lease works in your favor, triple-check specific elements like the lease term, the permitted uses of the space, your landlord’s obligations, and your ability to sublet the lease.

  1. Independent Contractor Agreements

Independent contractors can contribute useful knowledge and accomplish specific tasks for your business, without the expense and commitment of a full-time employee. When you bring in a contractor or consultant, you must have a solid agreement to cover matters like their role, their payment rate and structure, and the term of the contract.

  1. Employee Contracts

When it comes to outlining your expectations for new employees, your employee contracts and offers of employment are critical. The contracts should clearly state terms like your employees’ responsibilities, working hours, compensation, and grounds for termination, as well as your company’s policies and reporting structures.

  1. Confidentiality Agreements

Whether you are hiring an independent contractor, working to arrange a business deal, or trying to attract an investor, you will sometimes need to share confidential information with other parties. Confidentiality agreements (also known as Non-Disclosure Agreements or NDAs) protect your confidential or proprietary information, so you can keep doing business without worrying that one party will disclose your trade secrets.

If you want your company’s contracts to work for you and not against you, they must be comprehensive, clear, and well-written. To that end, you should enlist the help of a knowledgeable business attorney. Contact Cove Law to speak with a detail-minded lawyer who will make sure all your contracts are advantageous to your business.

Share this on...Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Email this to someone

Written by Andrew Cove

Cove Law has significant experience defending federal investigations and formal actions by the Federal Trade Commission, the Consumer Finance Protection Board and the U.S. Department of Justice, as well as similar matters on the state level by the respective state Attorney General’s Offices and other local agencies.