Monthly Archives: September 2011

A confidentiality contract, also known as a non-disclosure or secrecy contract is made by two or more parties where one doesn’t want the information to be released to others in an organisation or the general public. They are usually used by companies to protect the interests of the firm so that business secrets are not let out to rival companies; they can also protect a new product, technical idea or may involve confidential information on trade secrets.

There are many functions of a confidentiality contract:

  • Protection: The most obvious reason for a confidentiality contract is of course protection of sensitive information from disclosure to others and breach of this contract can result in legal action against one.
  • Patent rights: Confidentiality contracts can stop the violations of patent rights. Disclosure of an invention can be fined as a forfeiture of patent rights of a particular invention but a confidentiality contract can prevent such a situation.
  • Information: A confidentiality contract specifies what information can and cannot be divulged. This makes it easy for both the parties to know what their boundaries are.

When drafting a confidentiality agreement, these points must be kept in mind:

  • The contract must mention a time period within which confidentiality must be maintained and when can information be disclosed.
  • The contract must clearly mention what needs to be kept as business secret and what can be revealed.
  • The name and the position of the parties must be mentioned clearly.
  • In case it is a contract between an employer and employee, the latter may be asked not to disclose business secrets, client or product information, strategic plans, remuneration figures and so on.
  • Ideally, a confidentiality contract must offer an option under which the employer may allow or give permission to the signer to disclose company information.

A business contract specifically refers to a contract which involves a business transaction — it is a legally binding agreement between two or more parties for an exchange of services which have value. A business contract is used by companies to make sure that the deal is acted on and terms are mentioned clearly so that there is no breach of contract.

A business contract must include the following items:

  • Date of contract: Every contract has a commencement date and an ending date which is the term of the contact.
  • Names: A business contract must clearly mention the names of the companies along with their representatives.
  • Terms and conditions: These must include rules both parties agree to, details of what products or services one company is offering the other and what remuneration it will get in return.
  • Payment details: Besides giving the payment amount, it must also mention how and when the payment will be made by one party.
  • Termination clause: There are conditions under which a business contract is nullifies and these conditions must be clearly mentioned in the contract, along with damages for breach of contract.
  • Signature: The business contract must end with the signature of both parties.

There are certain tips one can follow to make a clear and concise business contract.

  • Be to the point: There is no need to use roundabout legal jargon as long as the terms are clear to the two parties; address the deal in a concise, specific and clear manner.
  • Legal knowledge: It is better if one is familiar with the legal issues involved with the deal and knows about the laws related to the business contract.
  • Read carefully: There are many points in a contract, especially in the fine print, that one tends to miss and hence should read the entire contract.

A contract is a written or oral document which is a legally-binding deal between the two or more parties laying out the terms and conditions agreed upon by the parties mentioned in the agreement. Before a contract comes into effect, the concerned parties need to accept the terms of the contract by signing it in written form and nowadays, even through electronic signature.

The basic features of a contract are as follows:

  • Names: At the very beginning, it must be clearly mentioned who are the parties between whom the contract is made.
  • Term: A contract has a definite period within which it is effective, the commencement and end date of the contract must be clearly mentioned.
  • Terms and conditions: Both parties agree to certain terms and they must be clearly laid out to avoid confusion.

There can be many types of contracts. They are as follows:

  • Lease contract: A lease contract is signed between the owner of a property, car, services, equipment etc and a person who leases them for his use in return for a sum of money for a particular time period.
  • Sales contract: A sales contract is made between a seller and a customer where a person or a company agrees to sell its products, property or services, and in order to get the rights to the goods and services, the customer pays for it.
  • Purchasing Contract: A purchasing contract is entered between someone who is looking to buy something from another — it can be a product, a house, services and so on – and in return the buyer is obligated to pay for it.
  • Partnership contract: This is the most basic form of contract where one formally lays down the terms and conditions of a partnership between two companies where either party is referred to as the partner.

A sales manager contract is a legal document signed by a company who requires the services of a sales manager for his products. A sales manager is responsible for boosting the sales of a company’s products and services by applying sales strategies and promotional activities, either working directly for the company or hired externally for a commission. Through his contribution, there is a better chance of a company’s growth.

Sample Sales Manager Contract:

This sales manager contract is entered on September 12, 2011 by and between the following parties:

COMPANY DETAILS

Name: Reach Telecom

Address: 83 Rockford, Texas

Phone number: 87458439393

SALES MANAGER DETAILS

Name: Bryan Cole

Address: 12 Mulberry Drive, Rockford

Phone number: 38473883478

TERMS AND CONDITIONS

As per the agreement, Mr Cole hereby agrees to work for Reach Telecom as a sales manager and will be responsible for helping and supporting the growth of the company by generating new business opportunities for achieving sales targets.

Mr Cole will receive an annual compensation of $75,000 and he will also receive a commission depending on the company’s performance per project.

Mr Cole will be in charge of a sales team which he will lead and direct to make sales strategies and assign them roles to reach out to the maximum number of potential customers for the company’s products.

The company gives Mr Cole full right to use the means necessary for boosting sales and shall evaluate his performance every quarter.

The undersigned understand and agree to the terms and conditions mentioned above.

Signature: Reach Telecom

Signature: Bryan Cole

A sales representative contract is a deal between a company and a sales representative who agrees to promote the sale of the company’s products in a particular geographical area. The sales representative has contacts with retailers, wholesalers and consumers and it is his job to present the company’s products to these parties and get more orders for the company.

Sample Sales Representative Contract:

This retail sales contract is entered on September 11, 2011 by and between the following parties:

COMPANY DETAILS

Name: Magic Textiles Inc

Address: 22 Northbrook Estate, Ohio

Phone number: 8758484984

SALES REPRESENTATIVE DETAILS

Name: George Jose

Address: 51 Street, Ohio

Phone number: 6576575767

TERMS AND CONDITIONS

Magic Textiles is engaged in the manufacture, sale and distribution of textiles and tapestries and as per the contract, the sales representative will promote the company’s products in North Ohio.

  • The Company has the right to select and appoint distributors in the Sales Representative’s territory.
  • If the Sales Representative does not meet the required targets, he may be removed from this post.
  • The Sales Representative will use his greatest efforts to get orders for the Company’s products by promoting the products clearly to the retailers and consumers.
  • The Sales Representative will solicit orders on behalf of the Company keeping into count the rates fixed by the Company.
  • The Sales Representative shall not speak negatively about the competing firms’ products.
  • The Sales Representative cannot promote any product without approval of the Company

The undersigned understand and agree to the terms and conditions mentioned above.

Signature: Magic Textiles Inc

Signature: George Hose