Drafting in Corporate Law

The Contracts and the agreements are considered to be the heart of the corporate world. Hence, it is important to understand that the contracts or agreements should be drafted carefully so as no loophole in them could be used against the parties to these contracts.

As the saying goes, “a stitch in time saves nine”, a carefully drafted contract could help save any future liability or unrequired complexity during the course of business. Lead India helps you with these issues, as we not only merely draft the contracts but take all the necessary precautions before the contracts have been executed.

Legal documents and businesses go hand in hand, contracts enable the company to enter a new market or could help extend the scope of the company. A legal document helps prevent any copying of its sensitive information by the competitors. There are a number of contracts or key legal documents which are essential for the startups- 

Non-Disclosure Agreement

1. A startup must protect its creative ideas, any revolutionary new product or any other sensitive information so as to retain its competitive edge, or else it falls in the hands of the rival companies. A NDA or Non-Disclosure Agreement is a legal document which helps preserve such confidential information. 
2. A NDA is a written contract between two parties, prohibiting them from leaking such confidential information, which they may come across during the course of their employment. 
3. It may also include the clause specifying whether the confidential information is to be returned or destroyed or the manner in which such destruction shall be done. 
4. The contract includes the remedies available in case there is a breach of contract. 

Trademark

1. Trademark is the sign which helps differentiate the goods of one enterprise from the other. Trademarks, thus are protected by the Intellectual Property Rights. A registered name helps secure your business  by creating a brand image with the course of time. 
2. Under the Ministry of Industry and Commerce, the Controller General of Patents, Designs and Trademarks registers the trademarks in India, as provided under the Trademark Act, 1999. 
3. A trademark registration provides legal protection to your products from being copied and sold in the market, which may affect the image of your product. A legal action could be taken against a party, if it copies your products or is selling its products under your trademarks. 

Employee Contracts

1. Employing a new employee could involve various legal documents. An employee contract is a written document between an employer and an employee defining the rights and the responsibilities of the employee. 
2. This contract provides legal obligations and the expectations of the company and the employee so as to minimise any future disputes. The contract before employing could be useful, in case you wish  to ascertain that the employed candidate does not leave the employment too soon, or disclose any sensitive information related to your business to your competitors. 
3. It may include the designation and the department where the employee is expected to work in.
4. The contract includes details such as the details of the employee’s salary, any information about the incentives which are provided by the company in addition to the salary to the employee. 
5. Non-competition clause- a separate agreement could also be prepared for this clause or it may be included in the employment contract as well. A non-competition clause, forbids the employee from engaging in any business or operation which is competitive with the business of the company or services provided by the company for a fixed period of time as is mentioned in the contract. 
6. An employee contract may also include the role and responsibilities or the scope of work for the employee. It may explain the role the employee is expected to play during the course of his employment. 

Terms and Conditions

1. During the course of business, it is important to decide in advance the terms of doing the business with the clients. In case you are a supplier or a purchaser, it is important to have the contract containing the terms and conditions ready before finalising a deal. 
2. The contract for terms and conditions shall include the process for payment, the distribution of the goods or services, any cancellation policy, or any other detail required for the proper completion of your business deal. 
3. The contract shall include the liabilities and rights of the parties in a certain situation affecting the business. 
4. Also, the contract shall include the process by which a dispute could be addressed to by the parties, for example if they wish to sort out any dispute during the course of their business through arbitration, or through the proceedings of the court. 

Conclusion

In addition to the above mentioned documents many other documents are required to be drafted as well, such as the shareholder agreement or any other regulations for the proper working of the company, etc. For further information about the kind of documents required for the businesses, etc it is advised to seek the assistance of an experienced advocate who could assist you with the same.

Starting a business in India, requires a lot of laws to be complied with as well as required a number of legal documents are required for the protection of a business as well, hence proper knowledge of the laws involved is important.