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Essential contracts for your business needs

Having the correct contracts in place, regardless of the type of business you run, is critical to your success. But, in order for your organisation to run effectively and meet consumer needs as well as internal growth ambitions, what types of contracts do you require? 

With this in mind, we'll respond to this question by outlining some of the most important contracts that any company requires.

What is a Contract?
A contract is a legally binding agreement that establishes and governs the rights and obligations of the parties involved. 

When a contract meets the legal conditions, it is legally enforceable. 

A contract usually entails the exchange of products, services, money, or a commitment to exchange any of these. 

What are the key contracts that any company requires?
Contracts must be well-thought-out and well-drafted and are critical to a company's success.

Listed below are a few contracts that your company should have in place:

  • Employment Contracts
Although providing your employees with a written employment contract is not required by law (you must provide a Written Statement of Employment Particulars within two months of an employee starting work), a signed agreement outlining specifics like holiday pay, bonuses, and how grievances will be resolved can help you avoid future claims in the Employment Tribunal. 

Employment contracts are increasingly able to specify how corporate information is posted on personal social media while also complying with data privacy rules.

  • Terms and Conditions
Your terms and conditions define how you run your company. They detail how your items and services will be supplied, as well as your cancellation and renewal rules, as well as how and when you will invoice. 

  • Non-Disclosure Agreements (NDAs) and Confidentiality Agreements (CAs) 
You may be required to disclose private information with other parties on occasion. 

An NDA/Confidentiality Agreement is now standard practice, saying that particular information given is to be kept confidential and that if the receiver violates confidentiality, you can seek compensation.

If you require assistance in this matter, visit our site or alternatively, contact us for more information on how to create an effective shareholder’s agreement. 

  • Intellectual Property Assignment Agreement
If an employee or founder generated intellectual property prior to joining the company, having an Intellectual Property Assignment Agreement in place will shield you from a legal challenge if there is a disagreement over ownership.

  • Refund Policies
Customers that are unsatisfied are an unavoidable part of every business. Such occurrences must be anticipated by a startup business. 

As a result, one of the first contracts to consider is a refund policy, which is a document in the business's Terms and Conditions that informs clients about what to anticipate if they find themselves in a position that necessitates the return of products or services acquired from the company.

  • Service Agreements
Many businesses sell their products or services without thinking about the conditions that must be made available to customers. 

Clients will be aware of what they are consenting to when they purchase goods or services from your business if they read these terms. 

If you are acquiring products and services from another person or business, the agreement will be beneficial if you want all parties to be aware of the transaction's expectations. 

We also have a team of professionals that can efficiently and precisely examine and create your service agreements.

What are the consequences of an absence of legally enforceable contracts? 
Your business is subject to conflicts and even lawsuits if you don't have the proper written contracts in place. These are not only expensive in terms of money, but they also take valuable resources away from attaining your goals and objectives.

There is no legal requirement for your suppliers to deliver vital materials on time if you do not have agreements with them, which might result in you being unable to satisfy orders.

And, in the case of Shareholder and Partnership Agreements, failing to have the former, which requires an even number of shareholder votes, puts you in danger of a deadlock. 

Because one member decides to resign from the partnership, it may be necessary to dissolve the partnership and shut the firm if the partnership does not have a Partnership Agreement.

Contract drafting and evaluation services are provided by Persona Finance to businesses of all sizes and sectors. Understanding your company is crucial to determining if it protects your company and your interests. 

For more information on our range of business and accounting services, please contact us now at [enquiries@personafinance.co.uk]. 
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