Types of Contracts in Business Law
When you are entering in a business, it is important for you to be aware of the legal aspects of your business. Included in this aspect are the business contracts.
There are types of business contracts in business law available.
It is essential for business minded people to have an understanding with the types of business contracts. Once you enter the business industry, having an awareness of this matter will help you run your business legally. Moreover, there are types of contracts in business law available.
Consequences When Contract is Not Available
It is proven that there will be risks involved in terms of business arrangement. These risks are particularly evident when there is no evidence of contract. Just in case there is something wrong that happened, the contract will be your safety tool. Because of the absence of contracts having the procedure stipulations, expectations and policies, there is a chance that dispute will arise. In case of broken contract, there is a possibility that lawsuits may be passed. Moreover, there is a chance that legal implications will be charged against concerned parties. The types of contracts in business law are the following:
- Bill of Sale
- Employment Agreement
- Confidentiality Agreements
Bill of Sale
Bill of sale is the first business contract you must be aware of. This is basically a legal document concerning the seller and the buyer. This also includes the ways on how the transaction was conducted. This also states that the buyer is given the ownership of the property that he has purchased. This is usually meant for several transactions. Examples of these are purchasing agreements in cars, electronics, antiques, jewelries and a lot more. However, bill of sale is not usually used for real estate properties as well as shares or stocks.
Another legal type of contract is Confidentiality Agreement. This type of contract is also termed as nondisclosure or secrecy agreements. This is a contract between two or more parties which agree at certain point regarding the confidentiality of information. Confidentiality agreements are usually used in case there is a new product made by a company. The information of the product is kept secret until there is already agreement done concerning comprehensive licensing. This contract is also used in several purposes depending from the point and its adaptability to the instance.
Employment Agreement is also another type of contract in business law. This is basically a form of legal document wherein it holds the employment terms between the employer and the employee. The effectiveness of the contract is usually activated upon signing of both parties. This is introduced to the employee once he will assume the position he applied for. There are some topics which employment agreement covers. Examples of these are employment terms, working hours per week or per day, expenses, salary, employment address, names involved, employment starting date and other pertinent matters.