One of the most important things to do when entering into a new relationship or transaction is to clarify how it will work.
Ensuring the parties have a basic, shared understanding of the terms of a relationship or transaction is crucial to its success.
Typically, you’ll begin with simple conversation, and then when you seem to be moving in a good direction together, you’ll want to memorialize your understanding in writing.
Contracts and Agreements
Yes, we’re talking about a contract. A contract is nothing more than a clear, written understanding of the agreement between the parties, and is the foundational tool used to set up a relationship or transaction.
A contract can be a brief, simple affair, it can be extensive and contain a highly sophisticated set of terms, or it can be something in between.
Most contracts will include at least some subject matter that is best addressed with certain “magic words” that have legal meaning and/or are expected to be included in the document. But, in general, the tone, tenor, and substantive content of your contract are dictated by your relationship or deal.
Basics
Contracts are all about answering the question – what is the parties’ agreement, and memorializing that agreement so that if a question arises, you already have the answer on the page.
To be enforceable, the terms of any relationship or transaction that cannot be performed within one year must be in writing. And, to clarify exactly what everyone is thinking, it also tends to be essential to put in writing the terms of any relationship or deal that will be performed in under one year.
Benefits
Writing down relationship or deal terms can be an amazingly helpful process. Before you do so, it may seem everyone’s on the same page. Then, as you do your best to put your shared understanding into words, sometimes you learn what portions of your deal need a bit more discussion. Without attempting to write down your agreement, you might not discover those areas where you don’t yet have a meeting of the minds. In a situation such as that, if you proceed without a contract and an issue arises, you can find yourself in a difficult situation.
On the other hand, having a contract in place can help to ensure smooth sailing and a successful relationship or deal.
Our Services
We do a lot of relationship, transactional, and contract work here at Oldani Entrepreneurial Law. We handle a variety of custom, one-off agreements and many:
- Asset Purchase Agreements / Asset Sale Agreements (APA)
- Buy-Sell Agreements
- Confidentiality Agreements
- Copyright Licensing Agreements
- Independent Contractor Agreements (IC)
- Licensing Agreement
- Management Service Agreements
- Master Service Agreements (MSA)
- Non-Disclosure Non-Use Agreements (NDA)
- Operating Agreements / LLC (limited liability company) Agreements
- Releases
- Shareholder Agreements
- Service Agreements
- Statements of Work (SOW)
- Stock Transfer Agreement / Stock Purchase Agreements (STA / SPA)
- Terms of Service (ToS)
- Terms of Use (ToU)
- Trademark Licensing Agreements
- Transfer Agreements
- Waivers