Are you a small business owner? Worried about potential legalities in the future? You don’t have to fret over what could or might happen to your business. Start using business contracts in your various negotiations. By pursuing and designing these types of contracts with a lawyer, you can avoid many lawsuits before they even get off the ground. Here are five contracts you should be using.
Bill of Sale Contract
Most business deals involve buying a property so that customers in trendy neighborhoods or business districts can be more conveniently served. In order to avoid financial problems when selling one business in order to buy a new property, you should use a bill of sale contract.
By working with a lawyer on a bill of sale contract, you’ll know that all aspects of the sale are covered. After all, it’s the lawyer’s job to include anything vital during the design phase so that sale doesn’t later come back to cost you even more money. A typical bill of sale contract should have information about the property and the sale, like cost, who sold the property, and any important notes about the property itself.
An employee contract is very important because it has information about key terms for new members of your staff. By designing these contracts, every employee can fully understand how things affect them from a legal standpoint, like if they’re fired or let go, or if they talk about the company without permission on social media. By putting things in an employee contract that your employees than sign as part of their orientation or onboarding, you protect yourself should you ever have to terminate their employment.
Employee contracts should be given to each new hire, and all terms and conditions need to be explained thoroughly. Standard employee contracts typically have information about payment totals, work hours per week, and bonuses.
If your business develops new products or uses specific strategies that you’ve developed, you’ll probably want to protect those products and intellectual property. If your company secrets are leaked mid-development or production or a product, it’s both difficult and expensive to come up with a revised or upgraded product or even something completely new. Businesses lose money when secrets are leaked, particularly when competitors act upon those secrets (which most do).
To prevent these costs, design a non-disclosure agreement for your employees to sign along with any other businesses you may work with during development or production. By putting NDA’s in place, if any company secrets are leaked, you’ll be legally equipped to sue for damages.
Sometimes, employees don’t work out in a business. Maybe they can’t adjust to the fast pace of the industry. Maybe they were a bad fit for the team, or maybe they find a better business opportunity. Regardless of why employees leave, you’ll have to find new hires. But those old employees could know a variety of company secrets, like product blueprints, financial statements, or sales.
Implement a Non-Compete Agreement for your employees to sign. After they’ve signed this contract, they can’t share important information about your business with executives at competing companies, nor can they start competing businesses of their own for the specified amount of time in the contract.
A sales contract is a practical legal solution for a business that frequently processes transactions, particularly with other businesses. This kind of business contract is very valuable since it can help you avoid disputes that could impact sales. While structuring the sales contract, always consider the terms and conditions because if it doesn’t benefit both parties about equally, you could encounter problems, even if the other person doesn’t notice the inequality immediately.
Few business owners want to get bogged down with legalities, but sometimes, it’s unavoidable. According to Weisblatt Law, disputes are almost inevitable, regardless of your business industry. By talking to a lawyer and utilizing these contracts, you can try to prevent many costly legal problems that could otherwise happen.