Small business owners and entrepreneurs need to know about business contracts. However, indemnification clauses and breaches of contracts probably scare you. You are not alone if this is the case.
Here is your beginner’s guide to the type of documents you will encounter during your career as a business owner.
Non-disclosure agreements
Non-disclosure agreements, commonly known as NDAs, are one of the most common documents you could encounter while following Ohio business laws. This type of contract requires those who sign it to keep certain information confidential. It protects sensitive information and keeps it out of the public’s hands.
NDAs are important for businesses with unique ideas that competitors might try to steal. Any time you present an innovative idea to investors, distributors or contractors, make sure you use this type of agreement.
Employment agreements
If you want to hire employees, you must have an employment agreement. You will need to implement it for any of your new hires. What this document does is specify your employee’s role and limit your liability. You must have an employment agreement because the default provisions favor employees over employers.
Terms and conditions
Whether you sell products or services, you should have terms and conditions laid out for every transaction. The terms and conditions spell out how those transactions will take place. You should also have terms and conditions when you are buying goods or services.
If you are an entrepreneur looking to be successful, you need to understand the valuable role of business contracts. These documents are an essential component of protecting yourself, your employees and your business.
