Doug and Jackie finished preparing the paperwork to start their new business, Alabama Technology Partners, Inc. However, it soon became apparent that they would need to write, review, and sign many different contracts and agreements in the course of their work. Doug and Jackie didn’t know much about common business contracts – yet.
Contracts, Generally Speaking
Any legally enforceable agreement between two or more parties may be considered a contract. However, contracts usually need to have the following elements:
- The parties must be competent to enter into the contract.
- The contract must state the purpose for making the agreement.
- A benefit of some sort must be exchanged between the parties.
- Mutuality of agreement must be present, which means the parties agree to form the contract.
- The parties must agree that contract is mutually binding.
Although Alabama courts may consider oral contracts valid under certain circumstances, it’s best to get your agreements in writing.
Some Business Operations Contracts
A business might use a contract during formation:
- A joint venture agreement states the responsibilities of each party to a joint venture.
- A partnership agreement formalizes the details of a partnership.
Business owners may face other contracts very early in the life of their company.
Regarding Sales and Purchases
Leases or mortgages may be necessary to acquire office and work space. Additionally, raising capital is often a concern, so the new business owners may sign contracts like security agreements and loans.
If the new company hires employees, there may be employment agreements, independent contractor agreements, non-disclosures, and non-competes to prepare.
Whether it’s hiring vendors or buying supplies and raw materials, it’s probable that the new owners will be writing bills of sale and purchase orders.
Some contracts will be simple forms. However, contract law can be very complicated. Drafting and signing an ambiguous or erroneous contract could very well have unintended consequences, like litigation.
Consult with an Alabama Business Lawyer
Doug and Jackie worked with their attorney to make sure their contracts were in order. The attorneys at Miller Estate and Elder Law have the experience to help with your business-related questions and concerns. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment or fill out our convenient Contact Form. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities.
