Types of Business Contracts: What You Need to Know

When it comes to business, individuals will encounter various types of business contracts. These focus on topics ranging from franchise deals to how businesses buy and sell products. Despite these differences, most agreements can be classified in one of three general categories: general business, sales-related, and employment-related.

Below we outline each of these groupings, along with common contracts that fall into them. Through a better understanding of the topic, we aim to help business owners make smarter decisions and avoid potential legal issues in the future.

The Three Categories of Business Contracts

General Business Contracts

These agreements cover topics such as how your business is structured and how stakeholders are protected.

Here are some types of contracts you will likely encounter:

• Partnership agreements
• Indemnity agreements
• Nondisclosure agreements
• Property and equipment leases
• Franchise agreements
• Licensing agreements
• Releases

Sales-Related Contracts

This category consists of contracts that focus on how property, goods, and services are purchased or sold. It also lays out a legal framework for transferring titles.

Here are some types of contracts you will likely encounter:

• Bill of sale
• Purchase order
• Security agreement
• Warranties

Employment-Related Contracts

This group of contracts set the terms of an individual’s employment.

Here are some types of contracts you will likely encounter:

• General employment contracts
• Non-compete agreements
• Independent contractor agreements
• Sales representative agreements
• Distributor agreements
• Nondisclosure agreements

How a Business Lawyer Can Help

No matter the stage of your business, it’s worth looking into working with a business lawyer. Doing so provides you with access to extensive knowledge of and experience with the legal system. Additionally, your attorney can advise you on the ins and outs of contracts so that you protect your company and match its unique needs.

If you are seeking an experienced Maryland business law firm, feel free to contact our offices in Timonium, Westminster, Frederick, or Columbia. Call (443) 665-8030 or request a consultation on https://www.rossalbers.com/.