How to make a Business Agreement
A business agreement is a very important document which is signed by two or more parties involved in a particular business transaction. When one enters into a deal, he needs to summarize what they want to do in terms of services to be provided, termination rules, payment amounts and procedures etc, and write that formally in a legal document. This makes the agreement valid and applicable in court and hence any violation of the terms can lead to penalties.
The parties involved in the parties thus discuss the terms with each other either through email or phone before the put it on paper and then sign the document after going through the final terms carefully, often in the presence of their lawyers and witnesses.
There are a few points to be kept in mind when making a business agreement:
- Discuss the tentative terms with the other party until you both reach an agreement so that the final terms can be typed in a legal document which will be prepared by the lawyer and can be signed by you.
- Include all the terms, specifications, rules and responsibilities in the document so that everyone understands what they are getting into and there is no confusion later on
- It is very important that the concerned individuals read the document carefully because it may consist of a lot of legal and business jargon and if possible consult a lawyer to interpret the terms for you, especially if it is a big investment
- The names of the companies and people involved in the deal must be mentioned clearly without any spelling mistakes
- Go through the terms of termination, the conditions which are regarded to be a violation of the terms and what are the penalties for those violations or how much do you set to lose if you don’t follow any term
Category: Sample Agreements