Businesses coordinate human and financial resources to produce and sell a product. This coordination is often complicated and subject to risk. Agreements regarding this coordination are essential to the efficient and informed operation of the business. Written contracts defining the obligations and benefits to those involved serve not only a legal purpose, but they also serve a planning and reference purpose. For example, written contracts help put partners, employees, contractors, and vendors on the same page in an upfront and proactive manner.
D. Tiller Law PLLC helps small businesses and startups negotiate various business relationships and draft written agreements to properly capture the agreed-upon relationships. While putting things in writing may seem cold or distrusting to friends and family who started a business on a handshake in a garage or dorm room, it is a crucial foundational step that has a long-lasting impact on the value of the business.
Why Foundational Agreements Are Important
- They can outline the operational and managerial roles of the owners
- They can define the financial interests and obligations of the owners
- They can secure to the business the rights in technology and intellectual property developed or acquired by or for the business
An Attorney Should Be Consulted for All Major Business Transactions
Transactional agreements are an important part of any business. One bad decision in the early part of a business endeavor can effectively kill the business if you fail to properly secure your rights or limit your obligations. You should seek legal counsel regarding any important contract or business arrangement presented to you. These include:
- Agreements with vendors, designers, manufacturers, or other business partners
- Employee and contractor agreements, particularly in cases where intellectual property and trade secrets are involved
- Agreements involving the sale, purchase, or licensing of intellectual property or technology
- Agreements involving contingent-liability provisions such as implied or expressed warranties and indemnities