Example Contracts: What You Need to Know
Example contracts are excellent guidelines in how you draft a standard agreement.3 min read
Example contracts are excellent guidelines in how you draft a standard agreement. A contract is an arrangement between two or more parties that assign legal duties and responsibilities. Parties that enter into a contract can include:
A contract must meet various conditions before it is legal in the eyes of a courtroom. First, the agreement should have definitive terms that detail what’s expected of all parties. Specifics are key in all contracts, and you should include valid clauses. The contract should also clearly state a motive, reason, or price when parties enter into an agreement. In most scenarios, the consideration would be money, but it would also include a promise to do a certain tasks or accept liability.
For instance, a non-disclosure agreement (NDA) does not allow the sharing of information that would be fair game outside of an agreement.
If you wish to keep certain information from leaking, you can draw up a non-disclosure agreement. This is a good agreement if you intend to hire freelancers on a project before it begins. It will safeguard the interests of contractors, and signing the agreement ensures that contractors will not leak any sensitive information.
Contract negotiations dictate that all parties must meet, and everyone involved must be competent and able to understand the terms. In other words, someone who is mentally disabled cannot enter into a legal contract. Further, enforcement of a contract against a minor normally cannot be enforced until that minor is 18 or older.
A contract can take the following forms:
The type of contract you’ll need will depend on the scenario or what other parties agree to. An oral contract is a verbal agreement where all parties verbalize an agreement, and such an agreement is legally binding. A court may have a harder time enforcing an oral agreement, which is why your agreement should be in written form.
Regardless of the form, you might enter into an agreement in the following scenarios:
- Applying for Jobs
- Apartment leasing
- Managing a small business
- Using a credit card to pay for lunch
Contracts comprise an everyday part of your life, and you should be informed about contract basics when it comes to making important decisions.
For example, you enter into an implied agreement each time you:
- Purchase a product at a store
- Order meals at restaurants
- Get treatment from a doctor
- Check out books from a library
An express contract includes taking a new job, signing checks, or dropping off your vehicle at an auto shop to be repaired.
You must understand the contents of a contract to safeguard yourself from liability and to protect any investments you may have. One example is a sales-related contract, where a party purchases from another party. This may include:
- Purchase orders
- Bill of sale
- Sale of goods
- Limited warranties
- Security agreement
On the other hand, employment-related contracts establish terms and conditions between an employer and employee. Such an arrangement outlines the expectations and duties that an employee should perform, including the compensation that an employer will give to an employee for services rendered.
Common agreements in the workplace include:
- Independent contractor agreements
- Consulting agreements
- Confidentially agreements
- Employment separation agreements
- Employee non-compete agreements
A lease occurs in areas pertaining to real estate, and they usually take the form of a written agreement. Equipment and real property leases also fall under this category. General business contracts mandate a certain type of contract that governs the actions and relationships of various parties. A business can enter the following types of agreements:
- Franchise agreement
- Indemnity agreement
- Covenants not to sue
- Settlement agreement
- Assignment of contracts
- Stock purchase agreement
- Joint venture agreement
- Agreement to sell a business
Letter of Agreement
A Letter of Agreement is more informal than a standard business contract. Essentially, it is used in the case of websites, smaller companies, or authors. This agreement is ideal for co-workers, friends, or someone you trust or know personally.
It is a simple letter outlining a specific agreement between various parties. The language is simple, and the details are easy to identify. With that, such an agreement is not as legally-binding as other contracts and may be harder to enforce in a court of law.
If you need to learn more about example contracts, submit your legal inquiry to our UpCounsel marketplace. UpCounel’s top lawyers will lend you a helping hand in drafting any type of agreement that protects your interests. In addition, our attorneys will help you enforce the terms of the agreement, and they will assist you in the enforcement of terms if any dispute ends up in the courtroom.