Business Contracts

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What's the Purpose of a Business Contract?

Business contracts govern business relationships between two or more parties. But not all contracts are equal. 

A good contract will clearly lay out the terms that are at the center of a relationship, include necessary protections, and account for many 'what-ifs' that could arise. A bad contract will vaguely cover a relationship, will be confusing, and not protect what you want it to protect.  

When entering into a business relationship with another party, it is important to clearly establish the relationship, terms, obligations, and what is expected out of all parties. This is because if there is a dispute within the relationship or if terms have to be enforced, the contract language will govern. 

For example:

• Did you know that under the Copyright Act, if you hire an independent contractor to perform work for you and there is no 'work-for-hire' or transfer clauses, the work created by your contractor likely isn't owned by you?

• Did you know that if your contract does not include an attorney's fee provision (subject to a statute permitting recovery of attorney's fees), you likely will not be able to recover your costs and fees incurred in enforcing the terms of an agreement?

If you're considering downloading a contract off of Google or purchasing a non-tailored contract off of a platform like LegalZoom, consider what the future you would want if you ever needed to enforce the terms of the contract. Using a more real-life example: if you slammed on the breaks of your car in a rainstorm, would you be better off if your breaks were changed by a licensed mechanic or a guy who changed your breaks from a YouTube video?

Think of a contract as an investment of your business relationship. 

What Types of Business Contracts Can I Create?

There are dozens of contracts you can make, depending on your specific relationship(s) and/or what goal you're looking to accomplish. Some examples are:

• Terms of Service; 
• Partnership Agreements;
• Non-Disclosure Agreements (NDA);
• Employee/Independent Contractor Agreements;
• Investor Agreements; and 
• Business-to-Business Agreements (just to name a few). 

If you're entering into agreements with other parties, you should consider speaking with a business attorney to go over your options and the best way to protect yourself and your business. 

Contact us today for a free consultation.