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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

Advisory Shares: An Explainer (US Law)

Article research by   Shreyas Nair  from WinSavvy's legal research team. Here's  his LinkedIn bio  for more information on him. What are Advisory Shares Advisory shares are a sort of stock option that are granted to business consultants rather than workers. They might be given to start-up company advisers instead of cash. Advisors are typically offered options to purchase shares rather than real shares.   Advisory shares can aid in maintaining confidentiality while avoiding conflicts of interest. They may, however, be pricey for a fledgling firm.   Advisory shares, also known as advisor shares, are financial incentives that take the form of stock options. Advisors who are granted advisory shares are often entrepreneurs who have previously served as firm founders or top executives. They trade their knowledge and contacts for shares in a new firm.   These consultants are not the same as accountants or attorneys. Advisors who get advisory shares are unlikely to be expecte