Business Law Firm for Agreements
Regardless of how a company is organized, it will need ‘business agreements.’ That’s an overly broad term and it’s meant to be – when two or more people are in business together or one company wants to do business with another or employees need to be hired, you need an agreement.
Not a handshake, not an understanding, not ‘we’ll do it like we did last time.’ A written agreement. Without a written agreement disputes become infinitely harder to settle. Courts are hardly predisposed to hear a business dispute in the absence of written agreements. Business agreements keep – or should keep – chaos at bay.
In a perfect world, that’s how it would work. In the real world it’s never easy or simple, even when the partners or shareholders or key employees are on the same page, with the same goals. Hopkins Centrich PLLC has designed, negotiated, and drafted agreements across the entire spectrum of business needs. We provide cutting edge, high quality, creative legal solutions to businesses, individuals, and families that own them.
Agreements that Work
Partnership, LLC, S-Corp, Corporation – it doesn’t matter what the formal designation is, none of them can work with any hope of success without agreements between the principals.
They need to be worked out between the owners, if only to be sure they are on the same page. If they’re not, their options should be carefully laid out, a decision negotiated, an agreement crafted and drafted to reflect it.
The agreements must be drafted to meet the requirements of the entity. What they need to include, however, are universal:
Rules for day-to-day operations- The roles of the partners
- The responsibilities of the partners
- How to settle disputes
- Exit strategy
- Crisis plans
- Succession plans
Agreements cannot be slapped together or made using cookie cutter forms ripped from Google Search, they need to be fair, comprehensive, and agreeable to all the principals. That requires communication, negotiation, and foresight.
A Brief List of Business Agreements
Non-Disclosure Agreement (NDA): Also known as a confidentiality agreement, this contract is used to protect sensitive information and trade secrets shared between parties, often during business negotiations or collaborations.
Employment Agreement: A contract between an employer and an employee that outlines the terms and conditions of employment, including salary, benefits, job responsibilities, and other relevant terms.
Partnership Agreement: This agreement is used when two or more individuals or entities come together to form a partnership. It outlines the roles, responsibilities, profit-sharing, decision-making, and dissolution procedures of the partnership.
Operating Agreement (for LLCs): Limited Liability Companies (LLCs) use this agreement to define the operating procedures, ownership structure, and distribution of profits and losses among members.
Shareholder Agreement (for Corporations): Corporations use this agreement to establish the rights and obligations of shareholders, including voting rights, share transfers, and restrictions, as well as how the company will be managed.
Sales Agreement: This contract is used when a seller agrees to sell goods or services to a buyer. It includes the terms of the sale, payment details, delivery timelines, warranties, and other relevant conditions.
Purchase Agreement: Similar to a sales agreement, this contract is used when a buyer agrees to purchase goods or services from a seller.
Service Level Agreement (SLA): This agreement is common in service-based industries and defines the level of service a provider will deliver to a client, including performance metrics, response times, and penalties for non-compliance.
Franchise Agreement: Used in franchise business models, this agreement outlines the relationship between the franchisor and franchisee, including the use of the brand, operating procedures, fees, and support provided.
License Agreement: This contract grants permission to a licensee to use certain intellectual property, technology, or other assets owned by the licensor, usually for a fee or royalty.
Joint Venture Agreement: When two or more parties collaborate on a specific project or business venture, they use this agreement to define their respective contributions, responsibilities, and profit-sharing arrangements.
Lease Agreement: This contract is used when one party (the lessor) allows another party (the lessee) to use their property or assets for a specified period in exchange for rent or lease payments.
Marketing Agreement: When businesses enter into a partnership to promote each other's products or services, they use this agreement to outline the terms and responsibilities related to the marketing activities.
These are just some of the many types of business agreements that exist. Each agreement serves a specific purpose and helps establish clear expectations and obligations between the parties involved. It's essential to have well-drafted agreements to protect the interests of all parties and prevent potential disputes.
Considering the ‘What Ifs’
Problems and disputes must be anticipated and addressed so provisions can be included covering them – ‘just in case’ clauses. Business ‘partners’ in every type of business entity work closely together for years. Business partners of every type of business entity are human. Personalities will clash, perspectives will change, personal circumstances will shift. A solid agreement can’t cover life’s events, but it can – and should – lay out a method for resolving disputes.
Agreements are the lifeblood of any successful company. They govern the business. There is no surer way to sink a promising business than throwing an operating agreement together without regard to the owners’ personalities and priorities.
Hopkins Centrich – a Business Law Firm
It’s vital to any company’s success to work with a law firm that knows business, knows what makes the difference between a good agreement and a great one and understands that people will be people.
The attorneys and staff at Hopkins Centrich have worked with business owners of every description to negotiate, design, draft, and help enforce (if necessary) agreements that do what they need them to do.
