Common Types of Business Contracts
Legal contracts are an integral part of business, and almost every single business owner will generally have to enter into some type contract at some point. A contract is defined as a legally binding agreement between at least two parties, which will set out the requirements of each party to uphold their side of the bargain. If a party later breaches the contract, any other parties involved may bring a legal action to either enforce the contract or recover for any losses they suffered as a result of the breach.
Contracts are necessary to protect business owners by allowing legal recourse if another party does not live up to their promise. If you need any assistance with any type of business contract, the experienced Seattle & Tacoma business attorneys at the Dickson Frohlich can assistance you. We draft, negotiate, and review contracts, as well as assist with any contract disputes, so please call one of our offices in Seattle or Tacoma at (206) 621-1110 or (253) 572-1000 to discuss your case.
The following are some examples of contracts commonly used in business:
Leases—Whether you are a property owner/landlord or you are leasing a space or equipment for your business, a lease agreement is imperative. The lease protects the rights of both the landlord and the tenant.
Partnership Agreement—If you own a partnership, it is always wise to set the specific terms of the partnership and the roles of each partner in a written contract. Having such a contract can work to prevent future conflicts between partners or set out guidelines for resolving conflicts.
Contract for the purchase or sale of goods—Whether you are a retailer or vendor, it is imperative to have a contract setting out the terms of the sale. The law requires that any transaction involving goods over $500 have a written contract that includes payment terms, delivery terms, and a description of the goods.
Nondisclosure agreement—Also known as an NDA, a non-disclosure agreement2 prevents employees, vendors, clients, or other parties from revealing confidential information about your business to which they may have access.
These are, of course, only a few examples of business contracts. You should never sign a contract without first consulting with an experienced business attorney.