Essential Agreements to Protect Your Business

One of the most critical functions when conducting business is that you protect your interests when entering transactions with other parties, including staff, customers, suppliers and partners.

It’s an area which often is inadequately addressed by small business people whose focus is on getting everything else right and so many agreements are done on a handshake, a handshake which means nought when things start to go wrong.

Here’s a summary of the essential agreements typically required in business…

Non-disclosure and Confidentiality Agreement

A contractual agreement to protect confidential proprietary information in a business transaction. A non-disclosure Agreement, also known as confidentiality agreement,
is a legal contract between at least two parties that outlines confidential materials or knowledge the parties wish to share with one another for certain purposes, but wish to restrict from generalized use. The agreement can be mutual with both parties restricted in their use of the materials provided, or can only restrict a single party.

Heads of Agreement

A non-binding document outlining the main issues relevant to a tentative partnership agreement. It is the draft used by lawyers when drawing up the formal contract, serving as a guideline for two or more parties before any documents are legalized.

Joint Venture Agreement

A contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share in the profits and losses of the enterprise. This may be to develop a product, intellectual property or marketing strategy rather than joint or collective profits, as is the case with a general or limited partnership.

Software License Agreement / End User License Agreement

A contractual agreement between a producer and a user of computer software which grants the user a software license. Most often, a software license agreement indicates the terms under which an end-user may utilize the licensed software, in which case the agreement is called an end-user license agreement.

Mailing List Rental Agreement

A contractual agreement with language defining the terms and conditions between two parties involving the rental of a mailing list for a fee. The arrangement may be for single or multiple use during the period of the agreement.

Employment Agreement

A contractual agreement between employer and employee at the commencement of the period of employment. The agreement states the nature of the business relationship and specifies what compensation the employee will receive in exchange for work performed.

Disclaimer Statement

A statement with the purpose of protection from unwanted claims or liability. It is a statement of denial of responsibility used generally with the purpose of protection from unwanted claims or liability.

Privacy Statement

A statement disclosing the company privacy practices for products and services and typically outlines the type of information that is collected and used on the website meant to protect for customers’ right to privacy

Don’t overlook any of these as you structure and operate your business.