Start-up companies will have to enter into formal written contracts when engaging with other businesses and individuals. Businesses use contracts because they are legally enforceable in a court of law. This will safeguard the interest of the business during disagreements.
Term sheet is a legal binding document that outlines the terms by which an investor will make his investment in the company. Term sheets will have the promise to fund the company, valuation, the terms of issue, exit etc
A share subscription agreement is entered to formalise the promise made by the investor to invest funds into a company. It will have the terms of the issue, the stake diluted, exit clause, rights and obligations of the partners.
Founder’s agreement is entered between the co-founders to avoid conflict and establish roles and responsibilities, equity ownership and vesting period.
Vendor agreement entered to ensure that there is no deviation in the terms of doing business with their organization. The agreement covers various aspects of the terms of doing business such as the quality goods provided, duration of the contract, terms and mode of payment.
Service Level Agreement
Service level agreement is similar to a vendor agreement explaining various aspects of the terms of doing business such as the quality of service provided, duration of the contract, terms and mode of payment.
Memorandum of Understanding
A memorandum of understanding (MOU) is a formal agreement between two or more parties to establish official partnerships. MOU are used when the parties are not able to create a legally binding document. It works like a gentleman’s agreement.
It’s a confidentiality agreement between two parties that outlines confidential material or proprietary information which is not to be shared. It is also possible for an employee to sign an NDA or NDA-like agreement with an employer.
It’s an agreement entered for a particular period of time or in a certain geographic area not to compete or do similar activities. This agreement is entered usually when you outsource a certain part of your work. It is also common to enter into non-compete agreement with the top level employees.
A Franchise Agreement is a legal, binding contract between a franchisor and franchisee. A franchisor grants the franchisee the right to use the franchisor’s system and proprietary marks to operate a franchised business
Businesses come across client’s material information. You need discloses some or all of the ways a party gathers, uses, discloses, and manages a customer or client’s data. It is an approach towards respecting your client’s privacy.
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