Basic Types of Business Contracts

Basic Types of ContractsRunning a business is not simply about selling products and dealing with customers. You will surely be obliged to get into agreements and sign contracts. This is something you should handle with utmost care, especially if your assets are involved in it.

If you are planning to build your own business, you need to know that contracts and agreements come in different types. This knowledge will help you protect your brand, your workers, and your customers.

Here are the most basic types of business contracts:

Your Own Contracts

Contracts are documents that make your business a real and tangible entity. Contracts under this category include agreements you made with your partner and the ones that allow you to operate the business. See to it that these contracts are streamlined and clear, so as to protect yourself from partners with ulterior motives.

Purchase Contracts

If your business has several assets, such as land, transportation, storage facilities, and shares in the form of stocks, you need to have the contracts that prove your ownership over them. These big purchases always come with warranties, so you need to review them thoroughly. Do not forget about the franchise agreements.

Contracts With Suppliers

You will surely work with third party suppliers at some point. After sourcing some of your product components or labour from these vendors, see to it there is a document about what you need to in case the purchased products or services fail. If your agreements with suppliers are already piling up, it is time to get a contract management system to make archiving easier, according to an expert from Versitrax.com.

These are only some of the most common types of contracts that you will use for your business. If you have a hard time dealing with these documents, you can always consult a lawyer specialising in business law and obligations and contracts.