Purpose of drafting an Agreement

The Contracts and the agreements are at the centre of the corporate world. Therefore, it is important  that the contracts or agreements are drafted with absolute care so as no loophole in these documents could be used against the parties to these contracts.

As the saying, “a stitch in time saves nine”, a carefully drafted contract can help you save any future liability or unrequired complexity during the course of business. Lead India helps you with similar issues, as we not only merely draft the contracts but take all required precautions before the contracts have been executed. Hence, if you wish to talk to a lawyer or seek free legal advice online for drafting and pleading, you may contact us.

Legal documents could be understood as the basic foundation of the businesses, properly drafted  contracts could help the company  enter a new market or can also help extend the scope of the company. A legal document drafting could help you prevent any copying of its sensitive information by the competitors. A number of contracts or key legal documents that are necessary for startups have been explained below- 

Non-Disclosure Agreement

• A startup or a company with some specific product must protect its creative ideas, any revolutionary new product or any other similar sensitive information so as to retain its competitive edge, or else it would fall in the hands of the rival companies. A NDA or Non-Disclosure Agreement is a legal document which helps secure such confidential information. 
• A NDA is a written contract between two parties, which prohibits them from leaking any confidential information, which they may come across during the course of their employment. 
• A NDA could also include such clause specifying if such confidential information is to be returned or destroyed or the manner in which such destruction should take place. 
• The contract so signed between the parties would include remedies which are available in case there is a breach of contract. 

Trademark

• Trademark is a specific sign which could help differentiate the goods of one enterprise from another. Trademarks, therefore are protected by the Intellectual Property Rights. A registered name could help you secure your business  by creating a brand image with the course of time. 
• Established under the Ministry of Industry and Commerce, the Controller General of Patents, Designs and Trademarks registers such trademarks in India, as has been provided under the Trademark Act, 1999. 
• Trademark registration shall provide legal protection to the products of the company from being copied and sold in the market, which could negatively affect the image of the  product of the company. A legal action can be initiated against a party, if it copies the  products of the company or sells them under the trademarks of the company. 

Employee Contracts

• Employing a new employee involves various legal documents. An employee contract is a written document which is signed between an employer and his or her employee which would define the rights and the responsibilities of the employee. 
• Such contract would provide legal obligations and the expectations of the company and the employee in order to minimise any future disputes. The contract before employing can be useful, when you wish  to ascertain that the employed candidate will not leave the employment too soon, or will not disclose any sensitive information related to your business to your competitors or anyone else. 
• An employee contract may also include the designation and the department where the employee is expected to work in.
• The contract shall include 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. 
• Non-competition clause- a separate agreement can also be prepared for this clause or it may be included in the employment contract as well. A non-competition clause,  would forbid the employee from engaging in any business or operation which is competitive with the business of the company or any such similar services which are offered by the company for a fixed period of time as has been provided in the contract. 
• An employee contract will also have the role and responsibilities as well as the scope of work for the employee. It shall also explain the kind of role the employee is expected to play during the course of his employment. 

Terms and Conditions

• During the course of business, it is required to decide in advance the terms of doing the business with the clients. If you are a supplier or a purchaser, it is necessary to have the contract containing the terms and conditions ready before finalising a deal. 
• The contract for terms and conditions must 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. 
• The contract has to include the liabilities and rights of the parties if a certain situation affects the business. 
• Also, the contract drafted must include the process by which a dispute will be addressed to by the parties, for example if they wish to sort out any dispute which arose during the course of their business through arbitration, or by sorting the issues through the proceedings of the court. 

Conclusion

Throughout the course of business various documents are required to be drafted including documents such as shareholders agreement or any other document which is related to the working of the company. In order to have your documents drafted or reviewed, it is advised to seek the assistance of an experienced advocate who could assist you with the same.