Understanding business Contracts

10 Essential Contracts For Small And Growing Businesses

Understanding Business contracts are so important to any Business. In this article, it summarizes 10 key contracts for small and growing businesses. These contracts need to be well thought out and well drafted and can be crucial to the success of a business. McDonough Law LLC is here to answer any questions you mat have about your Business.

Business Contracts

Employment Offer Letters

One of the best ways to protect your business from legal liability and misunderstanding with an employee is to have an employment offer letter issued and sent to the prospective employee. The employee should then be required to sign it, evidencing the scope of the employment relationship between the parties.

A good employment offer letter covers the following points:

  • The particular job offer
  • The responsibilities of the job
  • The salary and the benefits
  • That the employment is “at will,” meaning the employee can quit or the employer can terminate him or her at any time
  • That the employee is required to sign a Confidentiality and Invention Assignment Agreement (discussed below)
  • That the letter constitutes the entire agreement of the parties, and can only be amended in the future in writing, signed by the employer and the employee
  • That any disputes will be handled exclusively by confidential binding arbitration (other than certain designated types of disputes, such as those related to worker’s compensation)

Confidentiality and Invention Assignment Agreements

Employees have access to a company’s confidential information. Moreover, many businesses expect their employees to come up with ideas, products, business strategies, and inventions.

To make sure the employees keep the proprietary information of the company confidential, you should require them to sign a Confidentiality and Invention Assignment Agreement. This agreement deals with the confidentiality issue, but it can also provide that the ideas, business strategies, and other work product developed by the employee belong to the company, and not to the employee.

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