Gone are the days when people would seal deals with a mere shake of a hand. With the growth of technology and with constant economic fluctuations, people have found it difficult to trust other people, especially when business or finances are on the line. This is the exact reason why people, such as entrepreneurs and consumers, are more comfortable with a written agreement contract.
A written agreement is a written document that serves as a tangible piece of evidence to prove that you and another party have agreed to the terms and conditions that have been written or stated in the agreement. Agreement Forms are also called contracts and are legally binding documents.
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An agreement form is used by a lot of companies, organizations, and businesses. This is primarily because an agreement form lays down all the conditions and obligations of both parties. An agreement form is also legally binding, therefore it obligates both parties to follow it to the letter.
You can download and use our agreement contract forms to help you save on time and money. Our agreement contracts come in Doc and PDF format to provide you convenience and accessibility. You can choose from our wide array of Separation Agreement Forms, Lease Agreement Forms, Employment Agreement Forms, Contractor Services Agreement Form, and many more.
Why Do I Need a Written Agreement?
1. Provides an Outline of the Agreement
An agreement form is oftentimes used in business to make sure that a certain level of service is being delivered and is being maintained by a supplier, a seller, a contractor, etc. When you write things down, you are able to properly see the remuneration of certain terms and conditions that each party needs to abide by. For example, in a business agreement, a seller agrees to provide a product to the buyer. The buyer, in exchange, pays for the said product. If the buyer fails to pay for the item, then there is a breach of the contract and the seller is no longer obligated to provide the merchandise, or, has the right to confiscate the goods that have been provided. The process of negotiating for the terms and conditions found within a written agreement may take days, weeks, or months and can include a process for making changes when applicable.
2. Provides Limitations In Obligations And Warranties
An agreement form allows the enumeration of the specific duties that a company will provide, especially in contractual or service agreements. These types of agreements are usually provided in order to guarantee a follow-up service on a merchandise or a service such as maintenance, technical support, customer service care, or replacements. Having an agreement form makes sure that service providers or retailers are being compensated for the work that they complete and that warranties have a validity period to avoid abuse of warranties and replacements.
3. Ensures Security for Competition
A contract or an agreement form usually includes a non-compete clause. A non-compete agreement prohibits certain individuals or businesses from offering a similar type of product or service in the economic marketplace. A non-compete agreement ensures that your suppliers, vendors, or contractors do not open up a business similar to yours or that your employees work for a competing company for a specified number of years—typically for a year or two.
4. Helps to Fix Resource Costs
One common purpose for having a written agreement is the formulation of an association or organization that consents to pitch financial assets to another at a settled cost. These agreements guarantee the assembly or the generation of an organization can acquire financial assets at a particular cost for a characterized era. Organizations likewise utilize these agreements to support themselves against the potential cost increment of financial assets. Settled cost contracts may reverse the discharge on organizations if an abatement in monetary assets happens later on.
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How Do You Create a Foolproof Agreement Contract?
Written agreements or written contracts have the power to make you or break you. Which is why you should act as if you are treading on eggshells before you sign a contract and make sure that it is foolproof, especially if you intend to conjure one up on your own.
Making a contract is not as easy as it seems. A lot of things have to be taken into consideration. Below are some tips to help you construct a written agreement:
1. Put Things into Writing
Although some states and courts acknowledge the validity of a verbal agreement, one has to admit that verbal agreements are oftentimes difficult to prove and to enforce in the court of law. A written agreement is one’s best form of defense because it clearly lays out each of the party’s rights and obligations and also serves as a point of reference when one party does not understand or is confused about the set terms. A written form of agreement is your physical and tangible piece of evidence that will get you out of hot water when you’re in one.
2. Keep It Simple
A written agreement should serve its main purpose, which is to inform and to provide clear details about the negotiations between both parties. Contrary to what most lawyers think, an agreement does not really need to contain a lot of jargon to make it seem formal and enforceable. In fact, written agreements should be created in the clearest and the most concise way possible so that it can be easily understood by all parties involved.
3. Negotiate Directly with the People Involved
Contracts should be discussed and formulated by the people who are directly involved in the negotiation. If it is a Lease Agreement Form, then the names and the signature of the landlord and the tenant should be indicated in the written agreement.
Make sure that you directly conduct contract negotiations by people who have the right authority to bind the business and has a vested interest in ensuring that the business is able to give out its end of the bargain.
4. Provide Accurate Names and Titles
This is one of the most common mistakes in constructing a contract or a written agreement. A lot of people tend to indicate the names of the people who are signing an agreement for the business instead of stating the legal name of the company that is obliged to perform the terms, conditions, and obligations that are stated in the agreement.
5. List Down All Important Details
Your agreement should contain all important and necessary details—even the smallest and the most minute ones. Putting down all terms that have been agreed upon is the main reason why you are writing a contract to begin with, therefore, you should not leave anything out.
6. Provide Payment Terms
This is especially true for business contracts where financial details are very important. The names of the payee, the schedule of payments, the method of payment, and the conditions or requirements for making payments should be stated. For example, in a Loan Agreement Contract, the lender should provide the amount of money being loaned, the interest rate, and the monthly amortization and its schedule.
7. Supply Options for Terminating a Contract
Certain circumstances have to be set to allow either party to end or terminate the contract. Certain terms such as failing to provide the exact type of service on the time and date that was being set can be incorporated in the contract without legally obligating the other party or being legally sued for breach of contract.
8. Have Written Terms for Reconciliation
Misunderstandings or disputes may emerge some place along your business exchanges. It is best to provide a composed condition or a form of intervention to help you and the other party handle things genially as opposed to spending a gigantic measure of cash in going to court.
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What Are the Different Forms of Agreement Contracts?
Lease Agreement Forms
A lease agreement is a written document that formalizes the agreements made between a landlord and a tenant. The landlord is the property owner and the tenant is the person renting out the property. Having a rental agreement is necessary in the business of renting out properties because it protects the interests of both the landlord and the tenant.
Partnership Agreement Forms
When two or more individuals merge together to create a partnership in business, it is always advisable to have a well-drafted partnership agreement that carefully outlines the terms of the business relationship.
A Partnership Agreement Contract is a written contract between partners in a partnership that dictates the terms and conditions of the business relationship between the partners such as percentages of ownership, an outline of management powers, and the distribution of profits and losses.
Employment Agreement Forms
When an employer finds the perfect candidate to fill in a vacant job position, an employment agreement is created to seal the deal. An employment agreement or an employment contract is a written document that creates a legal and binding arrangement between an employer and an employee.
The contents of a Standard Employment Contract may differ from country to country depending on the set of labor laws for each one. However, a written employment contract is an integral part of the hiring process of an employee because it formalizes the status of employment of an employee and sets proper expectations.
Whether you are looking for an employment agreement template or a standard loan agreement form, we’ve got you covered. When it comes to written contracts, you want to be 100% sure that it is reliable or you will end up in a pool of hot water. Use our sample agreement templates for quick and reliable template downloads.
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