Hiro Capitals International – Business Contracts

What is a Business Contract?

A Business Contract is a legally binding agreement that lays out terms for the sale of goods or services between two companies. Business Contracts typically list what products or services are being sold and the price for each, as well as additional terms such as conditions, warranties, timelines, and payments.

Your business plans to buy or sell physical products from another business. Your business will provide a service or receive a service from another business. You are an individual or independent contractor who wants to make a formal business agreement.

Date: February 20, 2025
Client: Envato Group, USA
Category: Business Contracts
Address: 2946 Angus Road, NY

Business Contracts

Business agreements are the heart and soul of most companies and organizations. They help ease business operations and processes without friction between involved parties. Business contracts—when executed correctly—can help to manage business expectations and avoid liability.

Before setting up your Business, every business requires contracts that legally bind parties and ensure that the business is law-abiding. Business agreements apply to sole proprietorships, partnerships, and even multi-million dollar corporations in all industries—including retail, manufacturing and technology.

‌Operating a business without enforceable business agreements doesn’t work. Contracts provide guidelines on how to address any problems that may arise during the lifecycle of a business. Drafting the right contracts for various business scenarios can prove integral for a business, shielding it from legal loopholes that other parties in business deals may exploit.‌

The right types of business agreements can pave the way for smooth business operations by creating legal obligations for all parties. From hiring employees to reaching agreements with influencers, business contracts ensure all parties in the agreement know the deliverables required from them. They may also outline the legal repercussions individuals may face if they fail to honor such agreements.

Financial Agreements

Insurance Agreements

Employment Contracts

Lease Agreements

Types of Business contracts

Different business scenarios require different types of contracts with their particular uses and purposes. When drafting a contract, it’s crucial to consider the parties involved, the dynamics of the project, terms, and the legality of the contract.

A standardized contract comes in handy when setting similar terms for large volumes of business agreements. Standard form contracts that are used in many business-to-consumer agreements leave little room for negotiations.

1. Contract Amendment

A contract amendment is a separate legal document that revises an existing business agreement’s definitions, terms, sections, and clauses. It adds, removes, or changes the particulars of the original agreement once all involved parties reach a consensus.

Amendments to different types of business agreements happen when parties forget to include crucial clauses in the original document or when a party’s business situation changes. For instance, contract amendments can help to change payment terms between a business and its suppliers.

2. Bill of Sale

Also known as a sales agreement, this contract transfers property between two parties. It is a legal agreement that recognizes the transfer of rights between a seller and a buyer. Owners use this contract to prove ownership of a piece of land whenever such a scenario arises.

‌3. Enterprise service agreement

An enterprise service agreement is a business contract entered between an enterprise and a customer where the enterprise provides services—like accounting, cleaning, or internet services—to the customer.

It highlights details such as the terms, cost, and assurances of the service. An enterprise service agreement protects the interests of the service provider and clients, ensuring requested services are delivered and the enterprise is compensated accordingly.

‌4. Franchise agreement

‌ A franchise agreement is a legal agreement between a company or business—franchisor—and a franchisee outlining the rights and obligations of both parties. Details of a franchise agreement may include:

Duration of agreement, Location of operations, Procedures, Franchisee’s fees and investment Use of trademarks and patents Renewal and termination of the agreement Franchise agreements help franchisors penetrate new markets while relying on other businesses to make this a reality.

‌5. Employment agreement

These types of business contracts define the relationship between an employer and employees. Also referred to as an offer letter, this legal document clarifies details—including the duties and responsibilities of the employer and employer, compensation, benefits, duration, and grounds for termination.

Employment agreements can be tailored to become industry or business-specific. It is used to establish an official relationship between an employer and employee during the recruitment process. Digital employment contracts help companies handle a large volume of turnover or high growth periods.