This article takes a look at some of the contracts that are used in business while emphasising the need for a business lawyer.
Where would the world of commerce be without contracts? These essential documents are drawn up by legal experts and both parties sign off to the terms & conditions included in the agreement, ensuring that everything is clearly defined in black and white.
Here are some of the types of contracts that businesses use.
Employment Contract
Every company must have an employment contract; a legally binding agreement between the employer and employee. This type of contract would be drawn up by Saudi Arabia contract attorneys who have years of hands-on experience in drafting contracts of employment. Using a business lawyer ensures the contract protects the company and is fair to both parties, which is essential.
Partnership Agreement
When businesspeople team up in a partnership, it is essential that they come to a detailed agreement as to who is responsible for what; it might be two or more parties that are going to pool their resources and with the help of an experienced business lawyer, a detailed contract is drawn up and signed by all parties.
Non-Disclosure Agreement
Known simply as an NDA, this is often required to protect confidentiality regarding in-house processes. It isn’t just the military who sign NDAs; in some companies, every single employee must agree to non-disclosure, such is the importance of trade secrets.
Supply Contract
In some cases, a company would enter into a contract with a supplier and this contract would be drawn up by the customer’s lawyers, while the supplier’s legal team would also scan the document to ensure that their client’s best interests are covered.
Contract Of Sale
When a product is sold, there would be a contract of sale, which details the seller’s role and responsibility, plus information on product warranty and returns. A business lawyer should be the person to draft a contract of sale, a legal professional who knows how to word such a document.
Leasing Agreement
Many companies lease their business premises from the owner, while commercial vehicles are often leased from a local dealership. When drafting a lease agreement, it is crucial to cover every aspect of the agreement and before signing any lease agreement, you should have your lawyer scan the contract. The terms & conditions are normally long & complex, to cover every possibility that may arise during the lease duration.
Business Merger Contract
It is often the case where two companies decide to merge to become a single entity; of course, when this happens, both businesses need to be audited thoroughly to be accurately valued; such a contract might take months to complete.
Memorandum Of Understanding
Known as an MoU, a Memorandum of Understanding would be drafted for two or more parties to sign to ensure that all parties have an understanding of what is to be done.
Business Acquisition
When one company makes a bid to buy another company, this is called an acquisition or take-over. The business to be acquired would need to have a due diligence audit carried out in order for the buyer to get a clear picture of the organisation’s status.
Contracts are essential and they should be drafted by professional business lawyers with many years of hands-on experience in drafting contracts for their many clients. Any legally binding document needs a lawyer’s attention to ensure that you fully understand the terms and conditions of the said content.