Business Agreements
BUSINESS AGREEMENTS
Business Agreements play a major role in every business. Without an agreement, the business deal is not valid. In General, the Agreement Which happens when the offer is made between the parties. The agreement which acts as evidence for validating the contract. This helps to prevent the breach of the contract and avoid the persons from the commercial losses. In this article, we are discussing the different types of agreements which are used for the different specified works.
BUSINESS AGREEMENTS
An agreement is defined as the promise which is made by one party to the others. The agreement may be valid only if it fulfils the essentials requirements. The consideration is essential to both parties.
Agreement = Offer + Acceptance
As per section 2(e) of the act which defines the term agreement as that of every promise and every set of promises, forming the consideration for each other.
ESSENTIALS OF AN AGREEMENT
- There should be two or more parties to form the agreement.
- The Offer and acceptance shall be made between them.
- The motive and objective of the agreement is for lawful purposes.
- There should be free consent.
- The party shall not be an unsounded mind.
These are the certain basic essentials for an agreement.
KINDS OF AGREEMENTS
The agreements may be two kinds.
- Oral Agreement
- Written Agreement
Oral Agreement
The oral Agreement is also called the spoken agreement which the both parties agree to perform by the Oral words. Basically those agreements are made for simple works. That it may not perform any monetary considerations. In this oral agreement we can not provide supporting evidence in court during the breach of contract.
Written agreement
For most of the contracts the written agreements which plays a major role for acting the supporting evidence during the breach of contract, in order to prevent the parties from the financial losses. Even the company recruits the candidates by using the appropriate agreements to secure their businesses.
Basically the written agreements can be more certain and easily enforceable when comparing to the oral agreement,
- It clearly outlines the overall contract duration, payments, parties involved and the dispute resolutions.
- The written agreement which helps to secure the parties and their obligations.
- The written agreement which provides the party to claim easily when the other parties breach the contract.
- The written agreement which plays a major role in supporting evidence in the court if the criminal dispute is raised between the parties.
The agreement should be made based on our convenience with the legal requirements. There are a number of agreements there. From that the commonly used agreements by the Companies, individual for their business are,
Those are :
- Rental Agreement
- Security Agreement
- Franchise Agreement
- Indemnity Agreement
- Warranty Agreement
- Supplier Agreement
- Joint Venture Agreement
- Mortgage Agreement
- Distributors Agreement
- Non Disclosure Agreement
- E commerce website terms and conditions
- E commerce privacy policy
- MOU
A. RENTAL AGREEMENT
Rental agreement which serves as a legal binding agreement with the landlord and tenant relationship. A valid rental agreement which outlines all the essential clauses and establishes the both parties into the legal consideration.
This agreement was considered as a reference for the rental tenancy. Drafting the valid rental agreement with the suitable clauses will help to protect the both parties and it outlines the procedure for claims when the damage is happened.
B. SECURITY AGREEMENT
The security agreement is an agreement which is used in the specific secured transactions. It creates a security for your agreement. If any damages happen you shall claim from the securities which are made for the agreements.
The main function of these agreements is to provide protection for the lenders when entering into risky contracts or the business. This can secure the person from getting damages.
C. FRANCHISE AGREEMENT :
A franchise agreement is a legally binding contract between a franchisor (the owner of a business concept, brand, or trademark) and a franchisee (an individual or entity granted the right to operate a business using the franchisor’s branding, systems, and support).
It is a contract between the two parties where the franchisor authorises the franchisee to do business under the franchisor’s brand or trademark. This agreement outlines the rights and the responsibilities of the both parties through this valid agreement. It basically connects business development.
D. INDEMNITY AGREEMENT :
An indemnity agreement is a contract that protects the party or the company from the specific loss or risks from the damages of the other party in the particular transactions which they involved. Basically it prevents the financial risk from the agreement. It helps to recover from the loss of the business. Mostly these agreements were used for the risky financial contracts. The main objectives of the agreement which reduce the financial responsibility or prevent the losses.
E. WARRANTY AGREEMENT :
A warranty agreement is a connecting agreement made by the manufacturer to the customer, guaranteeing the repair or replacement of a defective item within a specified time frame. Often referred to as the manufacturer’s warranty, this agreement serves as a safeguard for the product purchased, providing assurance and confidence to the customer. Primarily it safeguards the buyer’s interest.
The warranty agreement, also known as warranty terms and conditions, outlines key details such as the product description, the terms and duration of the warranty, and the specific conditions and circumstances under which the warranty is applicable.
F. JOINT VENTURE AGREEMENT :
A joint venture agreement is a written agreement, when two or more persons or companies who decided to perform for a specific project for a certain period of time and share all the profits and losses as well as the responsibilities. A joint venture agreement allows the party to work jointly and ensures the safety and protection to achieve the specified project.
Recently, Apple and China entered into a joint venture to sell their Iphones in the Chinese market.
G. SUPPLIERS AGREEMENT :
The Supplier agreement is said to be a legally binding agreement which involves between the business and seller. The agreement which clearly defines the specific goods or the services that the supplier supplies the goods which specified in the contract for the buyer.
The supplier agreement ensures the quality of the product, delivery time, quantity, and price. It helps to keep the business running smoothly.
H. MORTGAGE AGREEMENT :
Mortgage agreement is a legal agreement between the borrower and the lender for securing the loan for the real property. That agreement which outlines the terms and conditions about the Mortgage.
The agreement contains the details of the property, principal loan amount, interest, repayment and penalties and other legal clauses regarding the mortgage. This agreement also confirms the clear title and ownership of the property before entering into the mortgage.
I. DISTRIBUTOR AGREEMENT :
Distributor agreement is a formal contractual arrangement between the manufacturer or the supplier and the distributors. In this agreement it outlines all the conditions for the sale and distributes within a specific region.
This legally binding document delineates the responsibilities, obligations, and rights of both parties involved in the distribution process.
J. NON-DISCLOSURE AGREEMENT :
NDA is a general term for any agreement where one party who discloses the shares confidential information with another party. The main specification of the agreement which is used to protect the confidential information to others.
Beyond a mere legal formality, an NDA is a proactive measure, an assurance that your organization’s invaluable information is shielded from potential threats, allowing for a confident and secure pursuit of business objectives.
K. E-COMMERCE WEBSITES TERMS AND CONDITIONS :
It is basically said to be a legal contract between your business and your customers. They outlined the certain guidelines about their business which includes user menu, responsibilities, business descriptions and about the customer support.
A strong Terms and conditions will protect your business and it helps to ensure the smooth customer approaching experiences. It ensures the clear protections for the customers and it will make a way to be user friendly for the customer.
L. E-COMMERCE PRIVACY POLICY :
It is a crucial document that helps to secure your customer data when they use the E-commerce platforms. A good privacy policy notice should build the customer trust and it helps to gain more users towards your e-commerce platforms.
M. MOU :
MOU which stands for the Memorandum of Understanding. It is a non-binding agreement between the two or more parties and that agreement which outlines the broad terms. Generally MOU are non-binding agreements which serve as a formal contract for the entered parties.
BUSINESS AGREEMENTS
Brochures
AGREEMENTS FROM LE INTELLIGENSIA :
At Le Intelligensia, we can help you create unique and personalised Agreements for your company. Our legal experts will draft according to your requirements. We do all types of drafting from personal to corporate.
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