The world of business is fast moving, with sales, marketing and operations frequently taking front seat for business owners and managers and consideration for well drafted Contracts sometimes taking a backseat.
But having professionally drafted and reviewed Contracts isn’t just good business practice, it is an essential protection for the business. Here are some of the 5 common Contracts every Irish SME should have.
- Service Agreement. Whether providing service or receiving service, a good service agreement should clearly set out:
- The scope of work and the business terms
- Deadlines and Termination Conditions
- Intellectual Property Rights
- Supply Agreement. This governs the relationship between supplier and purchaser. It should include:
- How are goods manufactured
- How are goods delivered
- How are goods paid for
- Non-Disclosure Agreements (NDA). A legal contract prohibiting the disclosing of confidential information shared during a business relationship. Commonly included:
- Defines what information is confidential
- Obligations the receiving party must follow
- Any permitted disclosure of the information
- Terms and conditions (T&C). A standardised contract governing how the SME will operate while doing business. It usually:
- Limits Liability
- Sets consumer expectations
- Can contain information regarding order cancellation, funds receipt and conditions for damaged goods.
- Shareholders Agreement. This contract is between the shareholders and governs decision making and share ownership. It typically:
- Outlines Share Capital and outlines decision making and the amount of consent to a decision needed
- Clarifies the roles and responsibilities of the shareholders.
- Covers Share transfer and rules for exit of the company by a shareholder.
If you have an SME or are looking to set one up, or have any questions on the above, please do not hesitate to contact Brendan Dillon or Simone Murray on 01 2960666
