What kind of contract does my business need?

Dec 20, 2018

Written by: Christopher Dias, DUKE Law Intern

Contracts are an integral part of any business, dealing with crucial issues such as money and relationships between people. There are several contractual agreements to consider when starting or growing a business:

signing-contractLease

This is a vital contract for businesses that require a physical space. When negotiating a lease agreement, consider whether the space fits the needs of the business and if the lease term is of a sufficient length (with a right to extend the term, if necessary).1,2

Loan Agreement

Borrowing money is a likely reality when starting or growing a business. Many businesses take out loans from banks or other financial institutions in the form of a contractual agreement, so things like payment schedules and the right to prepay the loan without penalty may be important when considering where to obtain a loan, among other considerations.3

Employment Contract

If a business requires the assistance of other people, then employment contracts must be signed by everyone that is hired. These agreements often take the form of offer letters that detail the responsibilities of the role, its salary/benefits, and a host of other stipulations.4 Depending on the nature of the business, a confidentiality agreement may also be necessary.5

There are a variety of other contracts to consider when looking to start or grow a business. For more information on what a contract is and how they operate.6

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1 https://www.forbes.com/sites/allbusiness/2016/02/03/10-essential-contracts-for-small-and-growing-businesses/#4ff6c6ef1aa3
2 For further information on lease considerations visit: Ibid.
3 Ibid;
4 Ibid.
5 Ibid.
6 https://www.canadaone.com/ezine/june2010/business_contracts.html