7 Types of Business Contracts in Northern Virginia

As a business owner, you likely handle a multitude of contracts. These documents are required to hire employees, rent equipment, and conduct general business. Contracts protect your professional relationship with the other party as well as your own business interests. Without a legally binding contract that’s properly written, you could leave yourself open to legal issues and other inconveniences that could hurt your business. When drafting a contract, language plays an important role. Writing a contract can begin as a simple process, but you need to include legal language to protect yourself and the other party. For that, you need a professional, especially one who knows the laws in your state. When searching for a lawyer, it’s not advisable to simply search online for “business lawyer near me.” Instead, work with an experienced law firm like our team at PJI Law, LLC, in Northern Virginia. You can count on us to help you create well-written, enforceable business contracts.

What Are Some Different Types of Contracts?

Most business contracts will generally fall into one of three categories:

• Employment
• Sales
• General business

Within these categories, you can typically expect to see the following: 1. Non-disclosure Agreements Non-disclosure agreements protect your company’s proprietary information. When working with vendors, contractors, and employees, these agreements prevent them from sharing your internal information with outside sources. 2. Property or Equipment Leases When you lease a building, warehouse space, or special equipment, the contract should include pricing, deposits, duration, maintenance requirements, and the agreement terms. 3. Purchase Orders When purchasing items for your business, you’ll likely encounter a purchase order. This legal document specifies the price, payment terms, delivery specifics, and whether the purchase is a recurring order. As a business owner, this protects your purchase by preventing last-minute price and delivery changes. 4. Bills of Sale A bill of sale helps you transfer a property title to another party. Essentially, it reflects that both parties agreed to the sale. These documents play an essential role in business transactions. 5. Employment Contracts An employment contract outlines the compensation, grounds for termination, employment duration, benefits, and other employment terms. When hiring new employees, this contract protects you from potential lawsuits that may arise during employment or after termination. 6. Non-compete Agreements Non-compete agreements protect your company from losing valuable employees to competitors. Typically, these will outline a location radius, identify competitors, and provide a time period during which the agreement is in effect. 7. Independent Contractor Agreements Separate from regular employment contracts, an independent contractor agreement establishes the terms for an independent contractor’s services.

How Does a Contract Protect Your Business?

Business contracts outline the terms and agreements surrounding transactions involving another party. These contracts both minimize risk and help you understand your rights as a business owner. Additionally, they set expectations for both parties. Typically, you’ll want to use a business lawyer to help draft this legal documentation. Business contract lawyers exist to help companies navigate business law and protect themselves during transactions.

What Is the Purpose of a Contract? Why Are They Important?

Business contracts serve the purpose of outlining expectations between the involved parties. For example, when hiring a new employee, you need a contract to establish the terms of employment. The contract typically includes the salary and benefits your company is providing. This signed document could prevent an employee from suing you if they later dispute their compensation or other aspects of their employment. On the other side, your employees also receive protection from this contract. When an employer breaches an employee’s contracted rights, workers can take legal action. From the business owner’s perspective, employment contracts make you stand out as an employer. This contract shows potential employees your professionalism in the employment process.

What Is the Process of Making a Contract?

When first drafting a business contract, you should consider the following in the process:

• Use language you can understand
• Use as much detail as possible
• Include all payment details
• Include termination details
• Consider attorney fees and potential mediation

When it comes to the bottom line, you want to include all necessary information while also preparing for potential future disputes. No matter who the parties are, a business contract keeps everyone safe. You’ll both know what to expect from the agreement and can conduct business accordingly. Problems can arise at any time, and a well-written contract will protect you.

PJI Law, PLC: Your Business Contract Lawyers in Northern Virginia

Whether you need help drafting a business contract or you’ve already written one, an experienced business attorney can help ensure that these documents contain the necessary items. Business law can quickly turn complicated, and you don’t want to risk your business’s future due to an improperly written contract. With offices in Fairfax and Leesburg, our knowledgeable team at PJI Law, PLC, can guide you through the drafting process. With white-glove service, we’ll take away the headaches of navigating the law on your own. Call us today at (703) 865-6100 or fill out our online form to schedule a consultation. Copyright © 2022. PJI Law, PLC. All rights reserved.