Types of contracts
You can create a contract to formalize an agreement of any kind. These are the most common types.
Every sale is a contract between the buyer and seller. The buyer promises to pay for a property or service (including intellectual property like music or images), and the seller promises to transfer ownership of that property (often guaranteeing its condition) or perform that service. Examples of sales contracts include a promissory note, a bill of sale, a warranty or security agreement, and a purchase order.
These contracts set the terms of any type of employment, including services for hire from freelancers, consultants, or other independent contractors. These types of contracts may also contain termination agreements in case the employee is fired, as well as nondisclosure agreements (NDAs) and confidentiality clauses, which protect the company from liability and disclosure of sensitive information. An employment contract might also include a noncompete contract to ensure that a competitor company doesn’t poach that employee.
General business agreements
These include all aspects of doing business, such as partnership formation, capital investment, and the sale or purchase of stock. NDAs, indemnity agreements (which cover compensation in case of harm or loss), or waivers of rights are also considered business agreements.
Parties to a dispute might agree to a settlement to avoid going to court. Before a dispute arises, business partners might sign a contract promising to use alternative means of dispute resolution, like arbitration and mediation, instead of pursuing legal action. In arbitration, a neutral third party decides the outcome, while in mediation a neutral third party tries to bring the sides together so they can find a mutually satisfying agreement. These are most common in franchise contracts and business sale agreements.
These types of contracts include leases for commercial, retail, residential, and parking spaces. They often detail maintenance expectations, requirements like tenant insurance, the amount of a security deposit, and the terms and conditions for its return upon completion of the lease.