If you’ve been around here any length of time, you know we advocate protecting your business with valid and enforceable contracts.
We help our clients stop relying on oral agreements and strongly encourage others to put the details in writing as well.
With that said, we realize many of you want to know more about the type of agreements you can use to protect your business.
While there are too many to cover in one post, let’s take a look at 5 common contracts you cannot afford to ignore:
1. Non Compete Agreement
A non compete agreement is a contract between an employer and employee that prevents him or her from accepting a job with a competitor for a certain period of time. Employers have been known to use NCAs to prevent losing talent and trade secrets. However, the court can refuse to enforce a non compete agreement that includes terms that are not reasonable for the employee.
2. Non Disclosure / Confidentiality Agreement
A non disclosure agreement (also known as a confidentiality agreement) prevents another person or business from disclosing, copying and sharing confidential information. Similar to a non compete agreement, it can protect your most valuable trade secrets and processes but usually will not affect a former employee’s right to work with your competitors.
If you prefer confidentiality, get a non disclosure agreement signed before you turn over private business information to anyone.
3. Employment Agreement
Hiring a new employee can be an exciting moment for your growing business. But it involves much more than reviewing resumes, interviewing and picking a start date. You must nail down the job description, salary, bonuses, benefits, grounds for termination, severance package options, and a whole slew of other details.
Use an employment agreement to clearly specify the terms and conditions of the employee’s job so you’re both on the same page.
4. Business Lease
A business lease is a contract between a landlord and tenant that specifies the details of a rental arrangement. Because the terms will vary from property to property and landlord to landlord, it’s important to thoroughly review and understand the lease before you provide your signature. You can learn more about business leases here and here.
5. Partnership Agreement
Business partnerships can reap many rewards when all parties agree on the mission, goals and direction of the company. But when personalities start to clash and the parties are no longer on one accord, the once-promising partnership can turn into a messy fight over who gets what and why.
Before you form a business with a partner, consider investing in a legally binding contract that defines the nature of the partnership as well as the obligations and responsibilities of all partners involved.
Starting and growing a business is one thing, protecting it is another. Make sure you’re using ironclad business contracts that can stand the court’s scrutiny.
Next Steps
Grab a copy of our free guide – Business Contracts Basics : What Every Florida Business Owner Must Know about Contracts.
Then, contact our Fort Lauderdale lawyers to have your contracts reviewed by an experienced business lawyer. Call (954) 779-7009 or click here to email us.
Every corporation, despite its nature, size or location, can benefit from having an effective lawyer that specializes in business affairs on retainer. An experienced business lawyer can provide legal assistance at every stage of your business, from the conception and organization phase, to advising you of potential issues of liability, and defending you from frivolous claims and lawsuits that could threaten your corporation’s success.
