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Showing posts with the label Agreement Drafting

Founders' Agreement for Startups: The Complete Guide

Founders agreements are important documents for any startup.  They ensure that all the business founders understand their roles in the company, agree on how decisions will be made, how equity, assets and capital will be shared, as well as the rights, responsibilities, obligations and duties of each member of the startup. Why You Need a Founders’ Agreement If you’re planning to start a new business with another person, you need to make sure that you have a clear understanding of who owns what and what each party’s responsibilities are and how shares are going to vest with each party. This also includes things like who gets paid first, who has final say, and who takes care of what. The main aim of a founders' agreement is to avoid future disputes from cropping up. You might think that shall not happen, but you would be surprised as to how common this actually is. When is a Founders' Agreement Used | Instances when You Might Need a Founders' Agreement A example of how a founde

Manufacturing Contract: An In-Depth Guide

This article explains in-depth, what is a manufacturing contract, benefits and drawbacks of using a manufacturing contract.  It also helps you analyze -  whether a manufacturing agreement is right for you and  helps you draft one yourself by showing you the main factors you need to take into consideration and the key components that must be present in a manufacturing contract. So, let’s begin!   What Is a Manufacturing Contract? Nowadays most start-ups as well as large scale businesses do not create their products in-house. While design and R&D are kept in-house, the production is outsourced to a third party.   A manufacturing contract is the agreement which you need to outsource your product manufacturing to a third party.   You, as the outsourcing business or a manufacturer may outright enter into a contract manufacturing transaction or may outsource the production of certain individual parts or the assembling of the product.   Since outsourcing companies, or contract m

11 Types of Commercial Contracts: (And How to Create Them)

Disclaimer : This article is for informational purposes only. If you require legal help with your contract drafting, send us an email and we will help you out. What are Commercial Contracts? A commercial contract is a legally enforceable instrument that binds one party to either do or not do something. It is utilised by and among businesses when entering into transactions with other parties, such as when buying, selling or leasing products and services, or hiring individuals or employees.   Commercial contracts include the conditions of the agreement, which encompass all relevant details of the transaction being entered into, such as force majeure , covenants , representations, recitals , mitigating circumstances , dispute resolution procedures as well as jurisdiction of the agreement in a court of law. Check out this article on the essentials of a contract to know more .   Improperly Drafted Commercial Contracts A breach of contract occurs when one party fails to meet their en

Share Purchase Agreement - All You Need to Know

Note: This article is not specifically on US Law, but is for an internationally wide audience. For the US version relating to purely a US legal system, visit our article on stock purchase agreement . What is a Share Purchase Agreement A share purchase agreement (SPA) is a contract between the seller and buyer of shares in a company. It sets out the terms on which the seller is selling his shares and the buyer is buying the shares. This one is a pretty complicated contract, so you need to be aware of the basic elements required when drafting a contract . Getting it wrong can have some pretty negative effects for your business , so you better watch out! The share purchase agreement (SPA) will describe the shareholding in terms of percentage ownership. In other words, it will specify how many shares you are buying, at what price per share and what percentage of voting rights this gives you against all other shareholders in the company. A share purchase agreement is also used when a busine