Different Agreements: Everything You Need to Know
Different agreements or contracts are required to ensure the successful operation of a business.4 min read
Different agreements or contracts are required to ensure the successful operation of a business. Some examples of such standard business agreements or contracts are the following:
- Terms and conditions
- Terms of business
- Privacy policies
- Shareholder agreements
- Employment agreements
- Nondisclosure agreements (NDAs)
Before getting into business, it's important to know the various business contracts that are required to run a business. It's not necessary for you to be a trained lawyer. However, you do need to have a basic knowledge of business law. In some parts of the world, you won't even be allowed to do business without the required licenses and agreements.
That's why it's important to have an understanding of how business agreements work. You should know what issues business agreements address, how they apply to such issues, and the legal consequences of breaching them.
Terms and Conditions
Terms and conditions are the regulations that make up an important part of a contract, which requires parties to accept and comply with certain rules or conditions in order for legally valid transactions to take place. The breaching of terms and conditions is categorized into four major groups:
- Minor
- Material
- Anticipatory
- Fundamental
The following are some of the ways terms and condition can be breached:
- Failure to properly deliver goods
- Failure to properly render services
- Delivering substandard goods
- Rendering poor services
- Failure to pay for satisfactory goods
- Failure to pay for satisfactory services
- Failure to honor warranty terms
Terms of Business
A company's terms of business is a set of agreements between parties to ensure the provision of a service in compliance with the binding agreements. Terms of business typically cover the following:
- Obligations of customers
- Details of payments and charges
- Termination of contract
- Liability limitation
- Consequences of termination
- Governing law
- Jurisdictions of dispute resolution
If there's a breach of the terms of a business, the affected parties can claim damages, which are then determined by the court.
Privacy Policies
A privacy policy is a way to ensure that a customer's personal information is gathered, used, and managed in a specific way. A privacy policy legally protects a customer's privacy. A privacy policy agreement includes clauses similar to the following:
- The company otherwise referred to as “we/us/our” is pledged to respect and safeguard the privacy of the personal information of our clients.
- The policy of protecting the personal information of our clients is the basis on which any data we obtain from them or which they give to us will be received, processed, and kept by us.