10 Common Types of Business Contracts You Should Know

A business contract or agreement can take numerous forms. Depending on the industry and business type, the number, scope, and even the name of contracts changes. Because of this, business owners may face challenges in finding the right enterprise contract management software that suits their business. 

When you begin a business venture, your business must undergo simple deals and partnerships. Wherein you sign a contract that binds two or more parties, and both parties agree to the terms of that deal. It will ensure that the business is compliant effectively. A business contract will not only build a healthy relationship between two parties but also controls liability, simplifies contract management, and prepares your organization to act in advance.

Business contracts applied and then the contracts became a priority to startups, mid-scale, or even large enterprises in industries like retail, manufacturing, and technology industries. There are different types of business contracts that an enterprise may not encounter all or any of these contract types. It is the responsibility of contract managers and stakeholders to be familiar with these contracts which might come your way.

10 Common Types of Business Contracts

• Joint Venture Agreement 

  Joint Venture or JV contract is an agreement that establishes a partnership between two or more parties in a particular business venture. This contract defines the terms, conditions, and responsibilities of all the parties to be met during the business project.

• Bill of Sale

  A Bill of Sale or a Sales agreement is a legal contract between a seller and a buyer that declares information about personal property. This contract legally proves the ownership of a property, which also helps to transfer property between two parties.  

• Employment Agreement 

  The Employment Agreement defines the relationship between an employer and an employee. This contract type will be significant when hiring an employee, which legally outlines the complete terms and conditions of a person’s employment for that company. 

• Partnership Agreement 

  When two or more entities partner together for a new business venture, they sign a partnership agreement. Partners get into this official contract which states their contributions, rules related to management, investments, responsibilities in the endeavor, and so on.  

• Licensing Contract

  Licensing Contract can be complex, but it is an important agreement between a licensor (an entity that owns a product) and a licensee (an entity interested in using the product). This contract declares the terms and conditions where the licensee will be permitted to use the product and includes details such as license validity, usage limitations, etc.

• Non-disclosure Agreement (NDA)

  Non-disclosure agreements or NDA restrict any party, an employee, or a stakeholder from revealing any information discussed during a business meeting. If a relationship is confidential, then neither of the parties should disclose that information to people outside the business.

• Sales Contract

  A Sales Contract is an agreement between a buyer and a seller outlining the terms and conditions of a transaction that involves the sale of goods and services. This agreement is a vital document which includes sales details, payment terms, and relevant information. It also prevents misunderstandings between the parties involved in such transactions.

• Service Contract

  An enterprise service agreement is a contract between a service provider and a client which outlines the services provided by the enterprise and protects the terms of payments. It ensures that the requested services are delivered and compensated appropriately by the enterprises.

• Lease Agreement

  This business agreement is a legal contract between the tenant and landlord which defines the terms and conditions of the lease of property on a monthly or yearly basis. This agreement protects the investment and rights of both parties.

• Franchise Agreement

  This agreement is a relationship between the company owner (franchise) and a business franchisor outlining the terms and conditions of the relationship. Through this contract, the franchisor allows the franchisee to use the brand name with full consent. Both parties sign this legal agreement, which includes the details of rights and commitments, how the business should operate, and other particulars. 
  
  

Create Business Contracts with ConvergePoint

ConvergePoint provides the perfect enterprise contract management solutions, laying the legal foundation for your current and future business ventures. Schedule a quick product demo and know what ConvergePoint’s software on Microsoft SharePoint can do for your business. Managing your enterprise contracts shouldn’t be complicated task for your legal team. Simplify your entire contract lifecycle through our simplified and automated contract management software.