3 Kinds of Contracts a Business Lawyer Should Create for You

If you own your business, you’re probably used to doing many projects by yourself. While this can save time and money, not everything should be a DIY endeavor, including business contracts. The success and well-being of your company depend upon the strength of its contracts. Since contracts can be very complex and must take into account federal and local laws as well as other regulations, most entrepreneurs don’t know enough about them to draft and manage them on their own. Therefore, enlisting the expertise of a business lawyer with litigation experience is in your best interest when it comes to business contracts. There are three types of contracts that you should prioritize having an attorney create for you.

Client Service Agreements

Also known as a contract services agreement, a client service contract establishes a legal relationship between a client and a service provider. Anyone needing to hire a service professional should ask for a service contract so that all parties know their privileges and responsibilities.

Client service agreements can come in many forms, such as fixed price agreements or time and materials agreements. Each kind of service contract is structured differently. The way you structure your client service agreements is crucial because it can impact several factors, including:

Which party is assuming risk in the agreement
Which party makes the payments and when they are expected
How the terms of the contract should be fulfilled

Purchase Agreements

A purchase agreement is a contract between a buyer and a seller outlining the various terms and conditions regarding the sale of goods. Typically purchase agreements are used when a purchase price is over $500. Still, they can certainly be used for smaller transactions as well. Purchase agreements are standard in real estate and home sales.

A basic purchase agreement should contain the following details:

Agreement date
The names, addresses, and phone numbers of the buyers and sellers
The type of goods involved
The type of sale
Contact information for witnesses or cosigners
Sale price
Quantities
Duration terms
Delivery and shipping terms, if applicable
Dates concerning the fulfillment of various requirements
If amendments or revisions to the agreement are allowed
Options if any legal disputes arise

Non-disclosure Agreements

A non-disclosure agreement (NDA) or confidentiality agreement is a legal contract establishing a confidential relationship. The party or parties signing the contract agree that any sensitive information they may obtain won’t be made available to any other parties.

An NDA is commonly used:

Before potential joint ventures discussions with multiple businesses
To protect an employer’s confidential business information with employees

Two main categories of NDAs exist:

Non-mutual non-disclosure agreements: For new employees who have access to sensitive information about the business. In these cases, the employee is the only party signing the agreement that prevents them from divulging confidential information.
Mutual non-disclosure agreements: Signed by two or more parties who agree to keep each other’s confidential information secret. These are commonly used when two companies are doing business together

Suppose one party breaches an NDA by disclosing certain details. In that case, the other party can pursue court action to prevent further disclosures and has the option to sue the disclosing party for monetary damages.

The Benefits of Proper Contracts

Formal contracts are invaluable to a business and its success. It doesn’t matter the type of business or the type of contract— the correct wording can prevent disputes and other legal ramifications. Additional benefits of contracts include:

Providing proof of what was agreed between you and the other party
Giving you security and peace of mind that the terms of the agreement are down on paper and can’t simply change depending on the goals of the other parties
Improved management of commercial relationships
Preventing misinterpretation, misunderstandings, and disputes by making agreements clear
Encouraging compliance or performance
Built-in agreements determining things like which jurisdiction will be used for litigation if it should become necessary
Reducing the risk of a dispute concerning payments, responsibilities, and timeframes
Setting how the parties can end the contract

Let Hackstaff Snow Atkinson & Griess Create Your Contracts

At Hackstaff Snow Atkinson & Griess, we have decades of experience writing, amending, and enforcing contracts. No matter what type of contract you need to draft, our attorneys can help. Let us ensure that your contracts include the provisions necessary to protect your business in all of its endeavors. Give our office a call today to learn more and schedule a consultation.