THE 8 KEY BUSINESS CONTRACTS EVERY BUSINESS OWNER NEEDS TO KNOW ABOUT
No one ever said running a business was easy. There are many contracts business owners need to know about and the legalese involved can sometimes be overwhelming. But protecting your business and its assets should be your main concern. Below are 8 contracts you can use to make running your business a little easier:
1. Nondisclosure Agreement: When dealing with vendors, clients or potential business partners, this form can help protect your confidential information and give you legal support if the other party discloses it.
2. Bill of Sale: An agreement stating the who, what, when, and how much of a particular sale of personal property. It can also prove the identity of the legal owner.
3. Promissory Note: The real-world version of an IOU. If someone wants to borrow money, they should use this note to memorialize the loan and the requirements for repayment, interest and penalties.
4. Employment Agreement: This is a contract setting the terms of a person’s employment. Details can include compensation, bonus structure, and causes for termination.
5. Trade Secret Agreement: This is a contract that helps prevent your employees from taking your customer lists and other proprietary information with them should they leave to go to work for a competitor.
6. Licensing Agreement: A licensing agreement allows you to make money on your invention or creation by allowing someone else to use it. You can use your license to outline terms like payment, exclusivity and restrictions on reproduction. This can be useful if you want to monetize the intellectual property you’ve created but need another person’s assistance to do this.
7. Leases: If you own, manage or need to rent either residential or commercial property, a lease agreement is essential. The lease can cover anything from rent and security deposits to rules about parking. Be sure you have one drafted.
8. Power of Attorney: A power of attorney lets an individual make legal, financial and medical decisions on someone else’s behalf. The person to whom the power of attorney is given is called the attorney-in-fact or the agent. The attorney-in-fact can manage important matters for someone like an aging parent or a child in college who is living far from home.
Reprinted permission of Bilal Kaiser – February, 2013
Please feel free to contact us at firstname.lastname@example.org or (949) 453-7979 for assistance in drafting any of the foregoing contracts for your business.