Business Contract is not just a piece a paper that you sign together with your business partner. This contract represents rights and obligations that both parties have in the agreement. Basically, it describes the outline of responsibilities of each party in detail, also the share of profits as result of the partnership. In short, it binds both sides to do a set of business moves that may bring profit for both sides.
You need to prepare Business Contract whenever you set out to have business partnership with someone or company other than yours. The contract can be binding both parties for certain period of time that has already been agreed. The period of the contract can be as short as a couple of months or go on for years. Some Business Contract is open for renewal after the end of the contract, while some other are truly meant to end as it is.
What Kind of Agreement That Requires Business Contract?
It’s important to prepare Business Contract when your business is set out for the following conditions:
• You make partnership with other company with the intention of gaining profit in both sides.
• You are going to use service offered by other company.
• You are making purchase from vendor.
• Even you need to make Business Contract when you are hiring new employee in the company.
What You Must Find In Business Contract
As Business Contract should bring profit in both parties, there are several information that must be inserted in the contract as the following:
• Identity and contact information of both parties.
• Business relationship of both parties.
• Responsibilities and obligations of both parties.
• Share of profit of the business agreement, if the contract brings in profit.
• Period of time for the contract.
Signing Business Contract before starting business partnership is important as it gives complete protection. The contract must clearly state the responsibilities and obligations that both parties must do in order to gain profit for both parties. It must be signed in full consideration and awareness of the consequences.
Indeed, Business Contract is created to avoid any conflict and disagreements that can be appeared in the future. In short, the contract is fully meant for protection and gives assurance of the business. This piece of paper is legally binding both parties to obey all the agreement that has been written down in it. Below is a sample of Business Contract template you can download as your reference to create your own.
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