Third Party Contracts
Business agreements between a corporation and its vendors, suppliers and customers are an integral part of a well-run business. A well-written agreement will clearly state the expectations of the parties and address numerous issues such as the termination of the agreement, the compensation to be paid under the agreement and precisely what is being bought or sold. A well-written agreement protects both sides from any ambiguities or misunderstandings and, should either party breach, protects the non-breaching party from injury.
Although not recommended for lower level employees, who should generally remain at-will employees, companies will periodically place an employee on an employment contract. Many companies desire for their executives to be placed on an employment contract, which includes confidentiality and non-competition agreements (where allowed). A well-written employment agreement will clearly state the expectations of the employee, the employee’s compensation and bonus structure, as well as the grounds for terminating the employee prior to the end of the employment contract term.
Every organization should have a comprehensive Confidentiality Agreement with their shareholders and employees. Although the company’s confidential information is legally protected if it qualifies as a Trade Secret, a well-crafted Confidentiality Agreement will add an additional layer of protection to the company’s most important information. The Confidentiality Agreement should clearly define what is deemed confidential and what the employee may and may not do with the company’s information. A well-drafted Confidentiality Agreement will prohibit the employee from using the confidential information for his own gain and will require the employee to return all company materials and information upon termination.