When you decided to start your own business, you likely knew that there would be a lot of work involved. Even after you got your business operations up and running, you still had to take steps to keep everything in line. You may have created new business relationships, taken on employees, conducted various sales and carried out other related actions.
Because each aspect of your business is important and you want to protect your company, you understand the value of having contracts in place whenever a new relationship or arrangement comes into play. In fact, you may need contracts for certain areas that you may not have considered before.
When do you need a contract?
Contracts are legally binding agreements when created correctly, and they are vital to the protection of company interests. Before you take any action with your business, you may want to determine whether you may need one of the following types of contracts:
- Employment-related contracts, which could include consulting agreements, confidentiality agreements, employment agreements, independent contractor agreements, employment separation agreements and others
- General business contracts, such as franchise agreements, release agreements, partnership agreements, settlement agreements, stock purchase agreements, joint venture agreements and more
- Sales-related contracts, like purchase orders, warranties, bill of sale, agreements for the sale of goods, security agreements and others
The exact contract that you need will depend on the type of action that is taking place. If you are hiring employees, you will obviously need to consider employment-related contracts. However, you may need to determine whether you need an employment agreement or an independent contractor agreement if you are outsourcing work rather than directly hiring employees.
Having the right contract and the right terms
It is vital to your business that you have the protection of contracts when necessary. It is also important that you utilize the correct contract and that it has the best terms for your company. Because you may not have much experience drafting agreements yourself, you may want to reach out for professional assistance. A Texas business law attorney can assess your situation and determine what type of contract you may need and ensure that the document benefits your company while also complying with the necessary state laws.
Making the mistake of not having a legally-binding agreement in place can be immensely detrimental to any business. As a result, you may want to consider your agreement options before moving forward with any transaction.