Well-drafted business contracts are an essential element of the success of a small business. Overlooking the importance of contracts could undo the hard work you have put into your business by forcing you to meet terms and conditions you did not anticipate or leaving your business exposed to unnecessary liability. Our Houston business law attorneys work with small business owners to help them use contract law to their benefit.
Essential Contracts Your Small Business Needs
Most companies need these essential contracts to protect them as they conduct business:
Confidentiality and Non-Disclosure Agreement (NDA)
Most companies have information they need to protect, such as client lists, competitive strategies, and research. However, employees and vendors may need access to proprietary or confidential information. NDAs restrict someone from disclosing or using the information without permission.
Website Terms of Use and Privacy Policy
If your small business has a website, you need to clearly define the terms of use for your website. The privacy policy explains how you will collect, use, and protect the information you collect from people who visit the website.
Vendor Contracts
Your vendor contracts set the pricing, delivery schedules, warranties, and quality standards for suppliers and service providers. The contracts also contain other essential elements, such as default and termination clauses.
Independent Contractor Agreement
As a small business, you may use several independent contractors and freelancers. You need a contract outlining your agreement, including invoicing and payments, roles, responsibilities, scope of work, and regulations. The independent contractor agreement should include terms for indemnifying your company for damages the contractor causes.
Employment Agreements
If you hire employees, your attorney may suggest employment contracts. Note that not all companies need employment contracts. An employment contract addresses all aspects of employment, including work hours, wages, benefits, standards, reviews, and termination.
Client Service Agreement
These agreements help you maintain a good relationship with your clients. A client service agreement outlines the scope of your services and payment terms. It also outlines the procedures for resolving disputes and terminating the relationship.
Lease Agreements
Unless you own the property, you will likely have a lease agreement for your physical location. However, you may also lease business equipment for your company. Lease agreements state the terms of your agreement, including a description of the property, the acceptable use of the property, responsibilities, rent payments, and conditions of default.
Operating Agreement
An operating agreement is essential if you have partners or multiple business owners. The agreement outlines the rights and responsibilities of all business owners. It explains what happens if an owner breaches the contract, including the dispute resolution procedures.
Depending on your business and other factors, your company may need many types of contracts. An attorney will determine other contracts you need and tailor those contracts to address your business concerns and interests.
Schedule a Free Consultation With Our Houston Business Law Attorneys
Contract problems can result in costly and time-consuming legal issues for businesses. Contact Capstone Legal Strategies, PLLC, to discuss how we can help your small business avoid problems with contracts. Our Houston business law attorneys help you draft legal and enforceable contracts that protect your business.