Common Types of Business Contracts
Businesses utilize contracts on a regular basis. Whether you initiate them or sign them, contracts are an essential part of business transactions. There are several common types of business contracts that you may come into contact with from time to time. These include sales, employment, and general contracts.
Sales Contracts for Buying and Selling
Something as simple as a purchase receipt is considered a contract. Most contracts are more detailed than that. Whenever you purchase goods or services, you should engage in a contract. The contract protects both parties and provides information about the details of the transaction. Both parties must agree to the terms of the contract. Once a contract is signed, it is enforceable.
Employment Contracts to Ensure Resources
Employment contracts are helpful when securing high-quality personnel. A contract puts specific terms in effect which are beneficial to both the employer and the employee. Before you present a contract to a potential employee, be sure that you have it drafted or reviewed by a qualified attorney. The employment contract may include conditions that must be adhered to if the employee leaves the company. Non-Disclosure and Non-Compete clauses in employment contracts are enforceable if they are drafted according to legal requirements; but can be declared unenforceable if they are not drafted properly.
General Business Contracts Occur Daily
General business contracts are those that don’t fall into other categories. These contracts may consist of leases, franchise agreements, joint-venture contracts, and other types of agreements. The most important consideration is to read any contract completely before you sign it. Many everyday transactions may benefit by putting them in writing. If you think a situation warrants a contract, it probably does.
Important Information about Business Contracts
Business contracts should always be made in writing to ensure that they are legally enforceable. If a contract is made verbally, back it up in writing with a letter or email. Contracts need to include something that is provided in contemplation of something else. In other words, both parties must gain something from the transaction. If a contract is poorly written or does not include important clarifications, the contract may not be valid.
Get Legal Help with Contracts
Business contracts can be complicated. Avoid problems with enforcement by having a contract reviewed before signing it. Your attorney always has your best interests in mind, and will help you make sure that your rights are protected. Take your time reading a contract, and be sure that you understand all the terms and clauses contained within it. Call the lawyers at Udall Shumway PLC when you need legal help with business contracts.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Business Contracts, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.
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