Business Agreements BC
A LEGAL BUSINESS IS A HEALTHY BUSINESS
Are you an entrepreneur looking to explore legal safeguards, additional revenue streams or expansion strategies? You’d be wise to consider relevant business agreements that outline terms and conditions in various situations. Whether you are a new entrepreneur starting a business, or a seasoned owner looking to expand, there are over 30 different types of business agreements that will ease operations and provide safety and security. Here are some common business agreements you’ll want to know about:
Incorporation Agreement
The incorporation agreement is a document signed by every person who is forming the business. Known as incorporators, they will typically become shareholders or directors once the business is incorporated. This agreement will state:
The agreement of each incorporator to take one or more shares of the company
The signature of each incorporator, their full name and the date each incorporator signed the agreement
The number of shares of each class being taken by each incorporator.
The agreement does not need to be filed online but needs to be kept as part of your business records (your bank may request this document when you open a corporate bank account).
Non-Disclosure Agreement
A non-disclosure agreement (NDA) is a legally binding contract that protects sensitive business information. By establishing clear boundaries around sensitive data, NDAs play a critical role in keeping your business safe and secure by preventing unauthorized disclosure of information.
Benefits of an NDA include legal protection if confidentiality is breached, more trust between parties and protection of intellectual property. NDAs are essential in startup negotiations, employment contracts, product development and many other situations, ensuring that sensitive information remains secure and controlled.
Sales Agreement
A sales agreement is a legally binding contract that outlines the terms and conditions of a transaction between a buyer and seller. This document details the goods or services being sold, including quantities, prices, payment terms and delivery conditions.
Sales agreements provide protection for both parties, reducing potential misunderstandings and legal disputes. These agreements may include provisions for quality control, timelines for delivery and consequences for breach of contract.
For business owners, they serve as legal safeguards that minimize financial risk and create a formal record of the transaction.
Intellectual Property Agreements
There are many different types of intellectual property agreements that can benefit both business owners and independent creators.
A licensing agreement is a legal contract that grants permission to use intellectual property, such as software, patents, or creative work, under specific terms and conditions. It defines the scope of usage, duration, geographical limitations and any financial arrangements like royalty payments. For licensors, these agreements create revenue streams and protect their intellectual assets, while licensees gain access to innovations, technologies, or creative works that would be costly or difficult to develop independently.
A copyright agreement is a legal document that defines the ownership, usage and transfer of rights for original creative work such as literature, music or art. Copyright agreements protect the creator’s intellectual property, provide revenue streams through licensing or sale, and prevent unauthorized use of original content.
A trademark agreement is a legal contract that governs the use, licensing and protection of a distinctive brand identifier, such as a logo, name or symbol. The benefits of a trademark agreement include protecting a company's brand identity, creating revenue streams through licensing and maintaining control over brand consistency.
FAQs
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Depending on your business, you will want to consider business agreements in the following categories: formation and governance agreements, employee and contractor agreements, sales and service agreements, commercial and financial agreements, corporate and transactional agreements. When you’re ready to explore business agreements to help your business grow, Parr Business Law can assist you with all your contractual needs. Click here to schedule a consultation call with us.
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You may be able to find certain DIY contracts online; however, it’s important to have a strong legal foundation for these documents to avoid future disputes. DIY contracts are not one size fits all, and don’t understand all the nuances and intricacies of your unique business. Legal battles may result from contractual disputes, costing unnecessary time and money. We recommend that you work with a trusted lawyer who can help you draft various business agreements.
Need Help Creating a Business Agreement?
When it’s time to take your business to the next level, crafting legally sound business agreements provide you with peace of mind in all areas of your business. Our lawyers have the specialized knowledge to provide you with reliable and candid legal advice on business agreements so you can protect your business and avoid conflict down the road. Schedule a consultation call with us today to learn more.