At any stage of business, contracts are essential. From signing a lease to hiring your first employee and even ordering a water cooler, contracts and agreements are unavoidable. While the small print for keeping the vending machine full might not be imperative to understand, there are a number of business agreements that you should have a basic knowledge of when launching a business venture.
As a top Minneapolis business law firm, KTF Law helps business owners understand the complexities of contracts and agreements every day. While there are far too many intricacies in these business contracts for a single blog post, we hope to provide a basic overview of these agreements to help you best prepare for your business launch.
Non-Disclosure Agreement: An agreement between at least two parties that outlines the sharing of confidential information and its restriction to third parties.
Why it’s Important? An NDA secures your business’s and clients’ confidential information. Every employee should sign a NDA regardless of business size or industry. Every company has some level of proprietary information or materials and a non-disclosure agreement helps protect it.
Purchase Agreement: Most common in real estate, a purchase agreement defines the terms of the sale of an existing business or commercial property.
Why it’s important? Purchase agreements outline the many terms involved in the purchase of a business. While a business contract attorney can help with the specifics, you should be able to identify basic items such as purchase price, closing date, etc.
Non-Compete Agreement: In a non-compete clause, an employee agrees not to enter into or start a similar profession or trade in competition with the business they are working for.
Why it’s important? Non-Compete Agreements help protect a business’s trade secrets and other proprietary information after the employee-employer relationship has ended.
The above agreements are great examples of contracts that entrepreneurs should be aware of when starting a business; however, they are just the beginning. For more information on the legal process and what to consider when starting a business, contact the Minneapolis attorneys at KTF Law. Our team of business lawyers is ready to guide you through the complexities of starting your own business!