Common Business Contracts for Michigan Business Owners
As a business owner, we know you have to deal with many contracts. From hiring employees to protecting your business from lawsuits, contracts are essential for a wide variety of business purposes.
Here, an experienced business attorney explains a few standard business contracts that Michigan business owners should be using.
General business contracts
General business contracts often relate to a business structure and how the business is protected.
Partnership agreement
A partnership contract details a business’s operation under two or more partners. The agreement includes each partner’s responsibilities, what percentage of the company each partner owns, and how much profit/loss the partners are responsible for.
Confidentiality agreement
A confidentiality agreement, also known as a non-disclosure agreement or NDA, regulates the disclosure and treatment of specific information. It typically protects knowledge of business information like trade secrets, business strategies, technical and commercial information, and knowledge of situations like legal action and mergers and acquisitions.
These contracts include the parameters of the confidential information, how the recipient must handle the information, and define any breaches of the agreement. It also must include any exceptions and term lengths of confidentiality.
Employment contract
Whether hiring full-time employees or freelancers, you need employment contracts to protect your business and your employees.
General employment contracts
A general employment contract is essential for establishing the rights and responsibilities of an employer and employee. These agreements typically include job duration, compensation, employee benefits, start date, job title, causes for termination, and list of duties.
Noncompete agreements
A non-compete or non-competition agreement is a legally binding contract between contracting parties. For example, one company contracting with another company to perform a certain scope of work might make the second company privy to confidential information. Non-compete agreements between employers and employees have been made unenforceable by a recent Federal Trade Commission Rule.
Independent Contractor Agreement
Independent contractor agreements are contracts between freelancers and a company or client that details their work together. This contract typically includes the work scope, deadlines, necessary confidentiality protections, and compensation.
Sales-related contracts
Sales-related contracts are legal agreements that dictate how goods and services are bought and sold.
Bills of sale contract
A bill of sale is a document that details the transfer of an asset from the seller to the buyer in exchange for money. This document is often used when selling vehicles, animals, or furniture.
A bill of sale contract should include the purchase date, name and address of both parties, the amount paid, description of the goods, any warranties, and the signatures of all involved parties.
Purchase order
A purchase order is a legally binding document sent from a buyer to a vendor or supplier when purchasing goods. This contract includes the supplier and buyer’s name, address, and contact details, the date of purchase, and the order identification number.
Talk to the Business Lawyers at JAD Law
When creating business contracts, an experienced business attorney can ensure that you include all necessary components and that the agreements are legally binding. JAD Law is here to help. Contact JAD Law today to schedule an appointment.
JAD Law serves several counties across Metro Detroit, Michigan, including Macomb, Oakland, St. Clair, and Wayne counties. JAD Law also serves counties across Northern Michigan, including Grand Traverse, Charlevoix, Benzie, Leelanau, and Antrim counties.
