What Is a Business Agreement?
A business agreement is any statement or contract formed or signed between two or more business organizations. The agreement can be either oral or written exchange of promises and deals between the businesses involved. According to Business Agreement Lawyers, any agreements formed between any businesses, big or small, could be considered as business agreements.
How to Write a Small Business Agreement
A small business is no different from the big players of the industry when it comes to making business agreements. Everything must be laid out in order to form a mutual partnership agreement. The business agreement covers every aspect of the business, including employment, hiring, trade, and acquisition. It must be kept simple in order for all parties to comprehend the terms of the agreement.
1. Identify Each Party
Make sure that you make agreements with the right person. The business contract should identify all the concerned parties within the agreement so it's clear who is responsible for performing the obligations under the agreement. As the future business partners legally bind the contract, their names should be written out correctly along with their roles towards the partnership agreement.
2. Write the Agreement and Spell Out Details
Your small business agreement should state in detail all the specified terms, conditions, rights, and obligations of each party involved. Other details include stock options, ownership rights, and other related matters that the shareholders have agreed upon. The two parties must reach an agreement as to how the business operations will be run during the course of the business agreement contract. The payment obligations, who pays whom, should also be specified.
3. Include a Termination Clause
The contract isn't all about the binding agreement, as it must also include a clause for the circumstances that might terminate the contract. Small business businessmen should protect themselves from non-compliant business partners. The termination clause gives protection to both parties, should either one of them breach the legal agreement. Write in the legal ways on how to resolve agreement disputes. If ever there will be changes and revisions in the overall business contract, submit in an amendment document explaining such development.
4. Seek Legal Advice
Before signing the agreement, you must seek legal advice from a knowledgeable and qualified business attorney. The attorney shall point out some weak points within the agreed format and content. Through this professional's advice, you can review if your small business agreement is compliant with your local laws.
5. Do Include the Dates and Places
The agreement is a legal document bearing important and confidential information, so every detail must be reviewed for verification. The dates and places of execution must be written out to keep records and track all the basic business activities.
6. Secure a Copy
After you have finished drafting your business agreement, make sure to keep a copy for future revisions and amendments. Send out copies to your prospective business partners or simply conduct a meeting to arrive at a legal agreement.