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Ten important contracts for your small business, part 1

Without a doubt, running a small or medium-sized business can leave you swamped with legal paperwork. To make the process a bit easier, we have compiled a list of ten essential contracts that you should know about. This post is the first in a two-part series that will address important employment contracts for your business.

 

1. Offers of employment

You can prevent many workplace problems by simply stating in writing the basic terms and conditions of employment, including that the employee's employment is "at-will."

2. Confidentiality and nondisclosure agreements

Confidentiality or nondisclosure agreements are important if your employees have access to sensitive information. After all, the last thing you want is for loose lips to sink your ship.

3. Invention assignment agreements

If your employee comes up with any strategies, business ideas or products while employed by your company, an invention assignment agreement can ensureyour business retains the rights to the work. Potential partners and investors often expect these contracts to be in place.

4. Sales contracts

If your company sells products, you should have a legally sound sales contract. Sales contracts are crucial, as they can enforce your prices, terms and conditions.

5. Service agreements

Perhaps your company offers a service rather than a product. You will need a service contract that explains, in explicit detail, the terms, conditions and limitations of the services that are provided. This could prevent potential litigation from a client who misunderstood the terms of your services.

In a future post, we will go over five more important business contracts that you should know about if you run a small or medium-sized business.

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