Running a growing business requires clear and well-drafted contracts to manage relationships with clients, employees, suppliers, and shareholders. These agreements help establish certainty, prevent disputes, and provide a structured foundation for sustainable growth. The following are five essential contracts that every developing business should have in place.

Shareholders’ Agreement

A shareholders’ agreement is a key document for any limited company with more than one owner. It outlines how the company will be managed, how decisions are made, and how profits are distributed. The agreement also defines what happens if a shareholder wishes to leave or sell their shares. Having a shareholders’ agreement in place ensures clarity among owners and reduces the potential for future disagreements that may disrupt business operations.

Service Agreement

A service agreement, sometimes referred to as a client contract, defines the terms under which services or products are provided. It sets out the scope of work, payment terms, timelines, and responsibilities of each party. This type of agreement helps manage expectations and reduces the likelihood of disputes. It can also include clauses on confidentiality and ownership of intellectual property, ensuring that both parties understand how sensitive information and deliverables are handled.

Employment Contract

An employment contract establishes the relationship between an employer and an employee. It covers essential aspects such as pay, working hours, duties, and notice periods. It may also include provisions relating to confidentiality, restrictive covenants, and intellectual property created during employment. A clear employment contract provides certainty for both parties and helps ensure that employment relationships are compliant with legal requirements.

Supplier Agreement

A supplier agreement governs the terms under which goods or services are purchased from a third party. It typically addresses delivery schedules, quality standards, pricing, and liability for delays or defects. This agreement helps businesses maintain consistency and reliability within their supply chains. Clear supplier agreements also protect against potential risks such as missed deliveries or substandard goods, supporting the smooth running of operations.

Non-Disclosure Agreement (NDA)

A non-disclosure agreement protects confidential information shared between parties. It is commonly used when discussing potential partnerships, investment opportunities, or new business relationships. An NDA defines what information is considered confidential and restricts its use or disclosure. This ensures that business plans, pricing information, and intellectual property remain secure during and after discussions.

Having these contracts in place provides a sound legal framework for managing your business relationships and reducing risk. We assist businesses across Lancaster, Morecambe, and the wider region in preparing clear and practical agreements tailored to their needs. Ensuring that each contract reflects the specific nature of your business helps maintain compliance and promotes stability as your organisation grows.

For more information, contact us on 01524 907100, info@pre-law.co.uk or through our online enquiry form.