What is a business? A business can be a company that is made up of a group of people having the same interest in trade, or an association of people working together to reach the same goals in the economic market. A business may also mean an individual’s occupation, or the practice in engaging or involving in commerce. The aim of every business is to become successful in the specific marketing field that they are dealing with. Nothing is more rewarding for a business than to see it succeed and grow.
In a business, getting involved or joining a certain business contract is a commonplace. Business contracts are important in businesses as it fosters the start of a trusting relationship and helps a business achieve success. Contracts also make it so that businesses do legal things and abide by the law at all times.
This article will be providing essential and useful information about what there is to know and learn about business contracts. Additionally, sample contract templates such as project contract templates and job contract templates are made available for free download. These samples will aid you to further your understanding about business contracts. There are a variety of samples for you to choose from below.
Auto Bill of Sale and Contract Template
Partnership Contract Template
Basic Employment Contract Template
Sample Employment Agreement Contract Template
Printable Employment Contract Template
Purchase and Sale Agreement Contract Template
Sample Domestic Worker Employment Contract Template
Types of Business Contracts
There are different types of business contracts being used today. Each of these business contracts are used for different types of business transactions to make sure that the contract created is one that is appropriate for the needs of the contracting parties. Although they have different uses, they all are equally important. The commonly used types of business contracts are as follows.
Bill of Sale Contract
A bill of sale contract is the most common contract used when it comes to selling and buying stuff, or goods and services. It is an agreement or arrangement between two parties about the transfer of ownership of a certain property. Buying and selling of high-valued items like vehicles, personal properties and assets, and animals are done through the use of a bill of sales as their sales receipt. Just like all other contracts, a bill of sale contract serves as a proof that such transaction occurred.
To make sure that you are getting yourself into a valid bill of sale contract, you will need to check the information required for this bill. These information include
- the date and time that the transaction or purchase took place,
- the name of both the buyer and the seller,
- the contact details of the buyer an the seller,
- where the property being sold is located,
- a description of what the item looks like and its condition,
- the price the property is being sold for,
- the payment arrangement, and
- if there are any loans on the property.
Employment Agreement Contract
Another commonly used type of business contract is an employment agreement contract. This contract is used in the work setting, usually when companies hire new employees. This contract is presented to successful applicants and the details are explained by the human resources personnel of the company. An employment contract is a legal contract that states the terms and conditions of an individual’s employment. The information that can be found in an employment contract is a description of the job that the successful applicant is being hired for, the work hours, the work location, how much they are going to be paid, what is expected of them at work, what bonuses and benefits can they get, and the reasons why they can be terminated.
Not all businesses sell goods and services. There are some businesses that generate income through their intellectual properties. An individual’s personal creation and inventions are called intellectual properties and they come in many forms, some tangible and some are not. Examples of intellectual properties are books, patents of machines and devices, or computer software programs. A licensing contract is used when the business contract involves the sale and purchase of intellectual properties. The contract would include details such as how much they need to pay the intellectual property, details of the rights on the said property, reproduction rights, and many more.
Nondisclosure Agreement Contract
A nondisclosure agreement contract or NDA, also known as a confidentiality agreement contract or CAC, is an agreement between two or more parties that limits them from sharing any proprietary or sensitive information about the transaction to those who are not involved in the contract. It is also known as proprietary information agreement or PIA, and secrecy agreement or SA. This contract is used when the parties involved in a contract wants to protect any proprietary and confidential information in their business transaction, along with keeping their trade secrets safe from their competitors.
We often hear of promissory notes during exams from those students who cannot pay their tuition fees on time. They have to present a promissory note so as not to miss their scheduled exams. A promissory note is a piece of document, more like a letter, that is signed and includes the promise of the writer to pay for their dues at a later time. The exact amount to be paid is stated in the note, as well as the exact date when the payment will be made is stated in the note. If a promissory note is written, it should be paid as promised. A promissory note is also referred to as note payable.
Sample Non-Compete and Non-Solicitation Agreement Contract Template
License Agreement Contract
Sample Nanny Contract Template
Sample Contract Template of Sale of Business
Performance License Agreement Contract Template
Sample Timber Sale Contract Template
Purchase Contract Template Sample
Why Do Businesses Use Business Contracts?
Business contracts are being used not because all other businesses are doing it. It is being used because it is important for a business to have and use one. The following are some of the reasons why business contracts are used and why they are important.
- A business contract is a piece of document that serves as proof of a transaction that took place. It is useful in situations where a business is asked to show authorized entities that they are doing business legally.
- A business contract provides an outline of the duties and responsibilities of the parties that are involved in it. It does not only include the duties and responsibilities, but it also provides a detailed list of the terms and conditions that the parties involved have agreed on.
- It can protect high-valued information and trade secrets from being leaked to entities outside the parties involved in the contract. Trade secrets and proprietary information are important in a business, that is why businesses are careful with whom they share these information to.
- Business contracts are used in the sale of vehicles, animals, firearms, and other personal properties. It states to whom the property is being sold to and from where it came from.
- A business contract is also used to transfer the ownership of a property from one individual to another.
- It prevents any unwanted and avoidable misunderstanding from happening. A breach of contract usually takes place when one party fails to follow what is required of them. This is because there has been a misunderstanding when the agreement was done. This is common with verbal agreements or contracts.
- A business contract includes facts that are important for the business transaction. The contract can be used as a reference when one party needs to check on some details of the contract to avoid violating any of the terms and conditions.
- Just like any other contracts, business contract is a legally binding agreement and is enforceable by the law. The parties who joined the contract are bound to its terms and conditions. This means that they need to oblige to it or risk breaching the contract, which may result in facing lawsuits and paying large compensations.
- Aside from the terms and conditions found in a business contract, the amount or price of the certain property being sold, as well as the method of payment and the payment frequency, is also stated in it. In some contracts, the price of the products and services being provided by the business are included in it.
There is just so much that business contracts have to offer. With its uses and importance above, would you still not want to use a contract for your business?
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