Drawing Up a Contract
Contracts can stipulate as much or as little detail to which the signing parties are willing to agree. As such, drawing up a contract can be a relatively simple matter, or a more involved one.
Do Contracts Need to be in Writing?
It's true: one can have a legally binding, enforceable contract that is oral - spoken only - and not put in writing. While not true for every type of contract - for example, in Florida, contracts pertaining to the sale of real estate must always be written - for most business matters, two or more parties may agree to a contract orally.
But oral contracts are problematic: they are difficult to enforce, with the terms and conditions of the contract ripe for misunderstanding by each party. If a contract dispute arises, how will it be known, or proven, who is in breach of contract?
Written contracts, therefore, are overwhelmingly in use by the business community. A written contract can clearly identify the terms and conditions which the parties are agreeing to, and even stipulate what is to occur in the event of a breach.
Common Types of Business Contracts
Many types of business contracts exist - all are designed so that two or more parties can enter into an agreement that clearly spells out the expectations of all parties, and which is legally enforceable. Here are just a few common examples:
Nondisclosure Agreements can be used to bar a vendor, new hire, former employee or anyone from disclosing key information about a business, and outline a legally enforceable condition if the other party violates the agreement.
Promissory Notes are often used to stipulate the terms by which borrowed money is repaid.
Partnership Agreements clearly outline the roles of those operating a business, and can specify details such as compensation and decision-making authority.
An Employment Agreement is used to outline the terms of an individual's employment, and will usually cover topics such as compensation and causes for termination.
Licensing Agreements allow one party to utilize the intellectual property of another for business purposes. Such agreements usually contain compensation details and restrictions on how the property can and cannot be used.
Power of Attorney allows an individual to make legal and financial decisions on someone else's behalf.
Schedule an Appointment with our Firm
For help creating any type of business contract, or to receive advice before signing one, click below to schedule a meeting. We keep all info strictly confidential, and we answer all inquiries in a timely manner.