Category Archive: Contracts

May
05

Creating a Corporate Purchasing Policy for Your Small Business

As your small business grows, more and more tasks will need to be delegated to employees.  This includes the ability for employees to make external financial and contractual commitments to purchase supplies, materials, and services for the company.  It is important for every company to have a clear internal Corporate Purchasing Policy that outlines the …

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Apr
28

Who Owns Intellectual Property – Employee or Employer?

contract

When an employee leaves your company, it’s important to know who is the owner of any intellectual property that employee created while working for you. The general rule is that an individual owns the rights to anything they have created, regardless of whether they were employed by someone else at the time. There are however, two …

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Mar
29

Tax Indemnity Clause – Don’t get Taxed for Another Business’ Activities

Tax indemnity in a small business context means Company A compensates Company B for taxes assessed on Company B as a result of Company A’s business activities. This concept often comes into play when two parties enter into a co-marketing agreement and one party is promoting the products of another party.  Co-marketing  sometimes leads taxing …

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Mar
22

Protecting Your Trade Secrets When Working With Third Parties

A common concern when starting a new business is how to protect your trade secrets. Maybe you have come up with a great business concept or developed a fantastic new product or service. How do you make sure the people you’re dealing with don’t steal your product or copy your idea? The Uniform Trade Secrets …

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Mar
08

Contract Basics – A Common Sense Guide for Business Owners

Having a basic understanding of contracts law will help you to negotiate your contract more effectively, whether you’re signing a contract for janitorial services for your company or agreeing to use a third party vendor to sell your services.  For transactions of even moderate complexity, it is highly recommended that you consult with a legal …

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Feb
22

Responding to a Request for Proposal (RFP) from a Prospective Client

Small businesses often receive a Request for Proposal or “RFP” from large clients inviting them to submit a bid to work on a certain project or provide services.  There are a number of online resources providing tips to prepare a well-written RFP response.  From a legal standpoint, here are two important issues to think about …

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Feb
04

Important Clauses in Supplier Contracts

Image by Flickr user Lauren Keith (Creative Commons) Many small businesses hire other businesses as suppliers for materials.   Below are several contract clauses that warrant special attention: Term.  The duration of the contract should be very clear.  It should end on a specific date like “one year from the (defined) contract effective date.”  If this …

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Jan
26

The Indemnification Clause. What does it mean?

Many commercial contracts have a provision called the indemnification clause.  Essentially, the indemnification clause is Party A agreeing to step in the shoes of (or “indemnify”) Party B to protect against any losses that Party B may suffer from using Party A’s services or products.  The clause can read something like this: “Software Company agrees to indemnify and hold harmless Web Design Company against any …

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Jan
25

Nondisclosure Agreements and Noncompete Agreements

Non-disclosure agreements and Non-compete agreements What is the difference and does it matter? What is a non-disclosure agreement (NDA)? An NDA, sometimes called a confidentiality agreement, is an agreement that the employee signs to protect sensitive commercial information that the company deems to be valuable to the company’s business.  It can be very broad, requiring …

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