Business contracts, also known as business agreements, are legally binding written agreements between two or more business parties. They are enforceable in a civil court of law if they follow specific contract laws and other enforceability factors. There are several business contract types that businesses need and may use daily during normal operations.
Becoming familiar with them can help you understand which documents and agreements you need to have in place to run a legally and financially healthy company.
The term “business contract” is a broad term that describes any legally binding document used to govern transactions in a business context. The contracts used will vary according to state, country, industry, and transaction type. However, some contracts are used more often than others.
Examples of a few business contracts include:
This section details the work, services or products that will be performed and delivered under the contract.
This section outlines how much work, product, or services cost, as well as how and when the client will pay.
This provision includes language that requires the parties of the agreement keep certain information confidential.
This section details who and how much a party will be liable if something goes wrong under while performing work under the contract.
This section details how and when the parties can terminate the contract. It may include notice periods.
This section details the procedure by which the parties will handle disputes, should any arise.
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