Key Takeaways

  • Common contracts cover sales, employment, and general business needs, but there are also industry-specific agreements such as real estate, intellectual property, and partnership contracts.
  • Sales-related contracts can include purchase agreements, bills of sale, warranties, distribution contracts, and service agreements, each with specific clauses on payment, delivery, and dispute resolution.
  • Employment-related contracts range from standard employment agreements to consulting, non-disclosure, non-compete, and separation agreements, tailored to protect both employer and employee interests.
  • General business contracts may include partnership agreements, joint ventures, licensing, indemnity, advertising, and settlement agreements, each serving a unique purpose in business operations.
  • Well-drafted contracts protect rights, set clear expectations, and minimize the risk of disputes, making professional legal review advisable before signing.

Common Contracts

Common contracts are the business contracts you are most likely to encounter in the operation of a small business. Like all contracts, they are legally binding written or oral agreements between two or more parties designed to fulfill certain agreed upon terms. Unlike complex contracts though, they are not as involved, as they tend to have fewer variables up for negotiation.

Most common contracts for small businesses can be classified as part of one of the following categories:

  • Sales-related contracts
  • Employment-related contracts
  • General business contracts

The legalese for such contracts can sometimes be overwhelming, and consulting with an attorney about them is generally advised, but in the end, protecting your company from legal issues should be your chief priority.

Industry-Specific Contracts

Beyond general business agreements, many industries use specialized contracts tailored to their operations and regulatory requirements. Examples include:

  • Real Estate Contracts – Cover sales, leases, and property management, often including clauses for inspection periods, contingencies, and zoning compliance.
  • Intellectual Property Agreements – Such as trademark licensing, patent assignment, or copyright transfer agreements, ensuring legal ownership and use rights.
  • Construction Contracts – Define the scope of work, payment schedules, and quality standards between property owners and contractors.
  • Healthcare Contracts – Include provider agreements, patient consent forms, and HIPAA compliance provisions to protect patient privacy and outline services.
  • Technology Agreements – Such as software development contracts, SaaS agreements, and data processing addendums, addressing intellectual property and cybersecurity concerns.

Industry-specific contracts are crucial for meeting legal standards and managing the unique risks of each sector.

Sales-Related Contracts

Sales contracts deal with how services, goods, and property are to be bought and sold, and as well as how the legal parameters relating to the transference of titles are to be set out, if applicable. Some important terms related to sales contracts are:

  • Bill of sale. This refers to a hybrid document that transfers the ownership of a property and offers proof that a contract was agreed upon for the sales terms. This contract is commonly used to recognize ownership of property and identify the owner of the property. For example, a bill of sale is commonly used for vehicle purchases.
  • Agreement for the sale of goods. This is a sales contract that may be confirmed with a bill of sale after a transaction is completed.
  • Purchase order. This legally binding contract commits the owner of a business to buy an item at an agreed price while specifying the payment terms and delivery date.
  • Warranty. These are any actions or conditions that will void the contract.
  • Limited warranty. This is a warranty with only one or a few conditions that will void the contract.
  • Security agreement. This pledges a property or asset as collateral in order to secure a loan. If the loan is defaulted upon, then the asset will become the lender’s property.

Additional Examples of Sales Contracts

In addition to bills of sale, purchase orders, and warranties, businesses often use:

  • Distribution Agreements – Establish terms for distributing goods, including territory rights, pricing structures, and exclusivity clauses.
  • Service Contracts – Outline the scope of work, timelines, and payment terms for services rendered, such as maintenance or consulting.
  • Consignment Agreements – Allow goods to be sold by another party while ownership remains with the consignor until sale.
  • International Sales Agreements – Address import/export regulations, currency exchange, and dispute resolution for cross-border transactions.

Including clear delivery terms, quality standards, and remedies for breach helps prevent disputes.

Employment-Related Contracts

An employment contract is a contract that sets the terms of a person’s employment. Details laid out in such a contract can include compensation, bonuses, and reasons for termination. They can also include a stipulation that an employee not work for a direct competitor for a determined time period after termination.

There are several kinds of employment contracts that one may encounter. These include:

  • Consulting agreements. These outline responsibilities and tasks along with compensation in return for consulting work.
  • Distributor agreements. These define one’s relationship with a distributor.
  • Sales representative agreements. These set out a salesperson’s commission amount and how it will be tabulated.
  • Confidentiality agreements. These bar individuals from disclosing restricted information to third parties.
  • Reciprocal nondisclosure agreements. In these, both parties are barred from disclosing restricted information.
  • Employment separation agreements. Also referred to as termination agreements, these formally end an employment relationship.

Specialized Employment Agreements

Employers may need contracts beyond standard employment terms to address specific workplace needs:

  • Non-Compete Agreements – Restrict employees from working with direct competitors for a defined period post-employment.
  • Freelancer/Independent Contractor Agreements – Clarify scope, payment, intellectual property ownership, and tax responsibilities.
  • Commission Agreements – Detail how commissions are earned, calculated, and paid for sales roles.
  • Remote Work Agreements – Define expectations, equipment use, data security, and communication protocols for remote employees.
  • Apprenticeship or Training Contracts – Specify training duration, obligations, and post-training employment terms.

These agreements protect business interests and align expectations between parties.

General Business Contracts

General business contracts relate to such topics as business structure and stakeholder protection. Examples of such contracts include:

  • Advertising agency agreements. These establish the range of duties to be undertaken by an advertising agency, as well what the payment and length of the work will be.
  • Franchise agreements. These outline the relationship between a franchisee and a franchisor, including such details as use of brand, advertising, and support.
  • Indemnity agreements. In these, one party agrees that they will indemnify, or not seek legal action against, another party for damages.
  • Licensing contracts. These give others the right to use your intellectual property, usually in exchange for monetary compensation.
  • Covenant not to sue. In this, a party that is claiming damages agrees not to file suit against the party at fault.
  • Settlement agreements. These involve two parties agreeing to bring an end to a lawsuit in return for concessions.
  • Stock purchase agreements. These are contractual agreements to sell a specified amount of stock to an individual.
  • Joint venture agreements. These set out the goals, obligations, and monetary contributions of those taking part in a joint venture.

Partnership and Collaboration Contracts

Collaboration-focused contracts are essential for joint ventures, partnerships, and cooperative projects:

  • Partnership Agreements – Define partner contributions, profit-sharing, management duties, and exit strategies.
  • Memorandums of Understanding (MOUs) – Outline preliminary terms for cooperation before formalizing in a binding contract.
  • Research and Development (R&D) Agreements – Govern shared innovation projects, including funding, intellectual property rights, and confidentiality.
  • Sponsorship Agreements – Detail benefits, deliverables, and rights when one party sponsors another’s event or initiative.

These contracts establish trust and clarity, reducing the likelihood of misunderstandings.

Frequently Asked Questions

  1. What are the main types of contracts in business?
    Sales, employment, and general business contracts are the main types, with industry-specific agreements like real estate or technology contracts also common.
  2. Why are examples of contracts important?
    They help businesses understand structure, terms, and clauses, ensuring agreements meet legal and operational needs.
  3. Can I use a contract template for my business?
    Yes, but templates should be customized to your specific situation and reviewed by a legal professional.
  4. What clauses should every contract include?
    Essential clauses often cover payment terms, dispute resolution, confidentiality, termination, and governing law.
  5. How do industry-specific contracts differ from general contracts?
    They address unique risks, regulations, and operational needs relevant to the specific industry, offering more targeted protections.

If you need help with understanding examples of contracts, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.