Legal and Regulatory

5 Must-Know Types of Business Contracts & Agreements

Knowing common business law terminology business can be infinitely helpful when you’re filling out paperwork, or just asking for advice from mentors and advisers. Especially important are the terms relating to the types of business structures that exists and the licenses and permits you might need.

Don’t be bogged down by business and legal terminology.

Protecting yourself and your business. We’re here to help with common contract terms you’ll encounter when filling out paperwork for your venture. Check out some names of common business contracts and what that contract really means.

  • Independent Contractor Agreements: A written contract showing that you have hired a company or a person to perform a specific service for a specific length of time.

  • Rental Leases: A written contract between you and a property owner showing an agreement to rent, maintain and insure their property for a specific length of time at a specific monthly price. Before signing a lease:

    • Check zoning to make sure you can do type of business at location.

    • Call utility companies for quotes on electric, water and gas costs at that location for type of business.

    • Know who you are renting from; is it a direct lease with landlord or a sublease with previous business owner?

    • Know your startup costs: Have contractor(s) walk through to get quote for all renovations and installations. Identify cost of things you can’t take with you when move.

    • Know your business environment: Do a market survey of customers and competitors in one-mile radius of location.

    • Get quotes for property and liability insurance, and Worker’s Compensation.

    • Negotiate free month(s) rent:

      • Identify cost of renovations and divide by monthly rent rate

      • Negotiate with Landlord to do the improvements

      • Negotiate terms that work for you. Terms that support business are: 1-5 years/renewable; and right of first refusal.

  • Equipment Leases: A written contract between you and an equipment owner showing an agreement to rent, maintain and insure their equipment for a specific length of time at a specific monthly price.

  • Purchase and Sales Agreements: A written contract between you and a seller to purchase equipment or their business at a specific price and by a certain date.

  • Credit Agreements: A written contract between you and a customer showing an agreement to provide him or her with products or services before being paid for them. The agreement states how and when the customer will pay for the products and services.