Business Contract Guide and When to Consult a Contract Lawyer?

Where You Need a Lawyer:

(This may not be the same place you live)

At No Cost! 
Legally Reviewed
Fact-Checked

 What Are Different Types of Business Contracts?

Actionable Insights and Helpful Tips

Actionable Insights and Helpful Tips

  1. Review contracts carefully before signing, and understand all terms and conditions.
  2. Consult a business contract lawyer for complex legal issues or disputes.
  3. Ensure contracts include clear representations, covenants, and conditions.
  4. Consider specialized legal counsel for sales, IP, or tax contracts.
  5. Properly drafted contracts are essential for minimizing legal and financial risks.

Business contracts are a big part of how companies handle their day-to-day operations. You’ll find them covering everything from equipment leases to employment agreements and sales contracts. Most businesses work with three main types of contracts.

General business contracts

General business contracts help you structure your company and protect everyone involved. You might use indemnity agreements that move some liabilities to another party, partnership agreements, property and equipment leases, or non-disclosure agreements. These contracts lay the foundation for how your business operates and keep your stakeholders safe.

Employment contracts

Employment contracts spell out the relationship between you and your workers. These contracts cover how long someone will work for you, what benefits they’ll receive, their pay, and when you might need to let them go. You can also add information about non-compete agreements or who owns the rights to work that employees create during business hours. Sales contracts (sometimes called sales agreements) cover how you buy and sell goods and services. These contracts help everyone know what to expect during the transaction. The whole point is to avoid disputes later by creating a strong legal framework for transferring ownership.

The information in your business contracts will change depending on what you and the other party need. Most contracts do have some common elements that you’ll see again and again.

Representations

Representations list who’s part of the transaction, when it’s happening, and what goods or services are changing hands. This section states what each party wants and clarifies the transaction.

Covenants

Covenants are commitments that one party makes in the contract. You might promise to let the other party check your credit or assets or you might agree to pay taxes on a property. Most of these commitments fall on the seller because they’re usually the one asking for money from the buyer.

Conditions

Conditions are requirements that need to be true or have to happen before you can close the deal. For example, you might need proof that the buyer can actually pay, which usually means running a credit check. Most contract disputes come from these conditions, though the question is if a small mistake is enough to let someone walk away from the deal or ask for damages.

What Is a Business Contract Lawyer?

A business contract lawyer helps you work through the world of business contracts. These attorneys understand the ins and outs of business contracts, plus they know the different laws that govern those contracts. Business contract attorneys will usually review, negotiate, or draft your legal agreements according to state laws and whatever your business needs.

Business contracts usually include plenty of formal and technical language because they need to cover every legal base that might come up. While you as the business owner will know just what the contract should have in terms of your business needs, you might not know every single law that you need to follow. A business contract attorney will be able to figure out what legal language needs to be included to protect your interests, while making sure everything follows those laws.

General business contract attorneys know about different areas in business law. But some business contract attorneys choose to only handle cases in one particular area of business law.

Some of the most common types of business contract lawyers include sales agreement or contract review attorneys, licensing of intellectual property attorneys, and tax contract attorneys.

You can also find attorneys who handle affiliate agreements, employment contracts, independent contractor agreements, and subscription agreements.

When Would You Need a Business Contract Lawyer?

Poor execution of your business contracts creates multiple legal and financial liabilities that you don’t want to handle. You need to draft and negotiate contracts well because it helps you run a successful business and an experienced business contract attorney can make sure that every legal requirement is met correctly.

You can completely manage a small business dispute on your own. But having an experienced business contract lawyer matters greatly when you’re handling tough business law situations. You may be able to manage a dispute with another business about the amount or price of a product you sold to them. But, if another business sues you for patent infringement or breach of contract, you’ll want to hire an attorney who knows just what they’re doing.

Do I Need a Business Contract Lawyer?

Business contracts can create plenty of legal complications that usually pop up over time. Most business contracts you’ll see have pretty technical and dense legal language that spells out just what each party owes to the other in the agreement.

That’s why you should reach out to an experienced business contract lawyer in your area if you run into any contract complications. An experienced business contract lawyer will help you draft, review, and understand all your business contracts from start to finish. They can also represent your interests and protect you if another party decides to dispute your contract down the road.

LegalMatch can help connect you with the right business contract lawyer for your specific needs.

Save Time and Money - Speak With a Lawyer Right Away

  • Buy one 30-minute consultation call or subscribe for unlimited calls
  • Subscription includes access to unlimited consultation calls at a reduced price
  • Receive quick expert feedback or review your DIY legal documents
  • Have peace of mind without a long wait or industry standard retainer
  • Get the right guidance - Schedule a call with a lawyer today!

Law Library Disclaimer

star-badge.png

16 people have successfully posted their cases

Find a Lawyer