Claremont Business Contract Lawyer | Thomas S. Carter

What Kinds of Contracts Are Important for Doing Business?

Contracts are a necessary part of regulating business operations, maintaining profits, and strategically positioning an enterprise. Companies use a range of contracts in the normal course of business. This can include the following:

• Business Contracts: Formation Documents, Partnership Agreements, Purchase / Sale Agreements for Goods / Services, Financing Agreements



• Employee Contracts: Hiring or Termination Agreements, Severance Documents, Non-Compete Agreements, Non-Disclosure Contracts

• Real Estate Contracts: Construction Contracts, Purchase / Sale Agreements, Lease Agreements

A contract is effective when it clearly and fully communicates each party’s obligations and rights. This helps reduce the risk of contract disputes arising. Preparing and drafting a business contract is best handled by a skilled business contract lawyer. An experienced attorney understands how to minimize potential liabilities and the associated interference of operations that could occur.

How Do Business Contracts Encourage Growth?

Contracts can be used as a strategic tool to foster growth and help an enterprise reach goals. Contracts should communicate in clear language what the scope of involvement is for each party, including monetary requirements and time limitations. Additionally, an effective contract will lay out the plan and give directions regarding specific items. This better enables a business to reach stated targets for growth without getting off track.

Additionally, business contracts can be the foundation for business relationships that are mutually beneficial to the parties involved. A successful contract may increase supply-chain competition, bring products to previously untouched markets, and facilitate innovation. When a contract is established with a corporate partner, more diversified revenue streams and growth can result.

How Do Contracts Strengthen Business Relationships?

Business contracts work to establish positive relationships between companies. Whether a contract is about transfer of services or about the sale of products, it can be used by all parties to clearly express their intentions. Mutually agreeing on the terms of the contract means that each party understands what is expected of them and will be satisfied upon the contract’s fulfillment. Good communication by means of business contracts allows for better cooperation between the parties. This strengthens business relationships.

Contracts that clearly specify details will decrease the risk of miscommunications occurring with other companies. Often a business dispute will occur largely because no contract was put in place. Such disputes may become costly as they drain critical resources from a business.

What Types of Contracts Can Benefit Employers?

Business contracts can be effective tools for shaping relationships with employees. Several kinds of contracts address specific issues relating to an employer-employee relationship. For example, a contract could specify conditions of employment. Terms of an employment contract reflect the agreement between the two parties, and they may include many kinds of information:

• Job Duties
• Financial Compensation
• Benefits
• Confidentiality Duties
• Vacation Time
• Termination Procedures
• And many other items …

Conversely, an independent contractor agreement will spell out the conditions under which an individual may work for the company without being an employee. Independent contractors most often perform a specific service for a specified period. Such contracts assist employers in clearly identifying the purpose and scope of the independent contractor’s work.