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A management agreement is an agreement between two parties, usually a manager and a company or an individual. The manager will operate on behalf of a company or individual. There are different types of management agreements: business agreement, service agreement, management contract, marketing agreement contract, property management contract, etc. These agreements and contracts should be negotiated thoroughly.
According to a business journal on the website, Gallup, "Great managers create the right environment for engagement." Managers play a huge part in companies. If you just hired a manager to work for your company, you should have a management agreement with the person. If you don't know where to start, hopefully, these steps can help you in making a management agreement for your use. These are general steps in creating a management agreement; your format differs on what kind of contract agreement you have.
The agreement will start on the effective date. The names of the manager and the company or the individual need to be present. Do not forget to add all the names of the parties included in this legal agreement.
The commencing date of the agreement is written here. There is a written note about the termination of the agreement before its normal expiration. There is also the date of the renewal of the agreement and the date will depend on the people involved.
All the responsibilities of how the management will be written here. You can write anything specific that will focus on the welfare of the company or the business. You can write the specific name of the person who will do the tasks given to him or her. You may include the things that he or she is only responsible for, and you may add the services that he or she shall not interfere in.
You can write in this space the agreed cost of how much the company will pay the manager; make the number specific. Don't forget to add when the manager is being paid, for example, on a quarterly basis. Will the manager deliver a printed invoice to the company for the costs corresponding to the management fee? Make it specific as possible on your business or service agreements.
Agreements have a termination period. Think of the possible reasons why your agreement may be terminated such as expiration. You can add a specific date when you may wish to terminate the agreement; however, be sure that both parties agree to that. You may add reasons like death, which is a valid reason. If the management company had done its part well and fulfilled responsibilities under the termination agreement, the management company deserves compensation. Add the specific details of the compensation.
It the end, there should be the signatures from both parties, to make the agreement genuine. They should also get their respective copies.