Essential E-Contracts For Small And Medium Businesses

As an individual, startup or a business organization, we all encounter contracts on a daily basis. When hiring an employee, providing services, outsourcing operations, etc. everything has certain terms and conditions that need to be followed for smooth working between the concerned parties. For this purpose, contracts and agreements are required by any business or individual.

We have created a list of some essential contracts that will help in various stages of your business.

Starting A New Company

As a start-up, in order to establish yourself in the market, you need to register your company and list the product or services you provide. For this you may need:

NDA- Business Plan

As a new company in the market, you have certain products or service you plan to launch. To make sure that your business plan, marketing plan, product composition, etc remain confidential, you require a Non-Disclosure Business Plan agreement. Here, the involved parties like the partners, managers and or employees sign a contract to protect the sanctuary of information.

MOU

Memorandum of Understanding or MOU is a generic agreement between two or more parties that define the mutually agreed upon terms. The agreement can be between the founders of the organization, its employees or your suppliers. When you come across to certain terms in the start of your business, it defines the scope of liability and responsibility of each party and prevents misunderstandings in the future.

Prospectus

A prospectus is nothing but a list of products and services that you will be offering to your targeted customers. In prospectus, you give a brief about your company, its key members, products and services offered, and so on. As a new entrant, having a prospectus can help you introduce your company in an effective and impactful way.

Raising Funds

Funds are a necessity that cannot be ignored when you are starting a new venture. You may invest your own money into the business or you may raise funds through different means. To raise funds, the following agreements will be beneficial:

Stock Purchase Agreement

Most new businesses and start-ups raise initial capital by selling stocks of their company. Some larger corporations also use option of selling stocks or shares of their company in order to raise funds for a particular project. For this, a strong and legally binding Stock Purchase Agreement is needed. A good Stock Purchase Agreement can be few pages long to 50 pages long depending on its complexity and terms.

Loan Agreement

Many businesses often turn to financial institutions and banks for getting loans for their projects and or operations. However, most banks and institutions have their own standard form of ‘Loan Agreement’ that they provide which is more favourable for them. A company should have its own Loan Agreement with clearly defined terms and conditions of payment, duration and its liabilities.

Leasing Premises

For any company to operate smoothly, having a corporate office or premises is a must. For small or medium enterprises, it is generally difficult to buy an office or retail space. Most startups opt for leasing premises for its operations. This requires a Commercial lease agreement.

Commercial Lease Agreement

When a commercial premises is taken on rental basis, a commercial lease agreement is signed. The agreement is between the landlord(s) and the party(s) interest to lease it for their business use. A solid and legally binding lease agreement protects both parties in the long haul. 

Providing Goods and Services

When a business is formed, it is with the aim to provide certain goods and or services in the market. Whether you are offering a software or running a restaurant, your startup is working to cater to your target audience.

Service Agreement

Service industry is booming in India. Major brands and local organizations are all invested in providing services to other companies. When you are getting services from the vendor and when you are providing services to others, both require a Service Agreement.  To clearly define the scope, nature and responsibilities of the service provider, Professional Service Agreements are a must for any startup or business. 

Sale of Goods Agreement

Many organizations are involved in the business of selling products. Therefore, they need a solid Sales contract for selling their product to merchants, vendors, customers and consumers. The contract mentions terms of sales and company’s scope of liabilities.

Distribution Agreement

A Distribution Agreement is between a manufacturer or vendor and a distributor. As a manufacturer, it is difficult for a company to reach a vast audience on its own and hence distributors are hired to provide your products or services in certain territorial areas. This agreement highlights the geographical area assigned to the distributor, its responsibility and payment terms.

Hiring Employees

Human Resources are a crucial part of any organization. For a start-up or small business to succeed, it needs to expand its employee base beyond the starting members. As a part of the HR process, you can benefit from the following digital agreements:

Offer Letters

Offer Letter is given to selected candidates who are hired for a particular job role. It gives a summary of offered position and terms and conditions of hiring. This is a preliminary step for any organization to show their interest in hiring a candidate for a particular position in their organization.

Employment Agreement

Much like the offer letter, an Employment Agreement also highlights the terms of hiring, salary breakup, stock options, etc. However, this agreement is made when all the terms and conditions are finalized with the employee and they have come on-board.

Non-Disclosure Agreements

Any information that a company does not want to be disclosed to others within or outside the company requires an NDA agreement. There are numerous instances where you are working on a proprietary product or with confidential information and some other party is involved. To keep information within the group of people working on that product signing an NDA makes them liable to protect sanctuary of confidentiality and not discuss outside the trusted circle.

These are just a few of many contracts that are required in day to day workings of any business. To simplify the process and make it faster, switch to e-contracts. Electronic Contracts offers a seamless, borderless and faster contracting system for any organization.

With platforms like Feelium E-contract, you can customize templates, e-sign, share and authenticate an agreement from Anywhere, Anytime!