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Manager

Essay by   •  January 25, 2011  •  276 Words (2 Pages)  •  1,093 Views

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The best way to protect a business from legal liability and misunderstandings with others is to have a legal contracts; whether if those are individual or companies; whether they are inside our company like our employees or outside like our customers, without airtight, well-thought-out contracts, businesses may be in legal jeopardy. Companies need to make sure that business agreements are comprehensive, well thought out, and protective.

For example a good employment offer letter covers: the particular job offered; the responsibilities of the job; the salary and benefits; that the employment is "at will," meaning the employee can quit or be fired at any time, also employees have an enormous amount of access to a company's confidential information. And many businesses expect their employees to come up with ideas, work products, business strategies, and inventions.

To make sure employees keep proprietary information confidential, employers should require them to sign a Confidentiality and Invention Assignment Agreement. This agreement can also provide that the ideas, business strategies and other work products developed by the employee belong to the company and not to the employee.

Also for the customers there is Sales Contract. Many businesses sell products, and therefore need a good Sales Contract. The Sales Contract lays out the price, terms and conditions for the sale of goods, equipment, or other products.

The actual Sales Contract can take the form of fine print on an order form or an invoice, or it can be tailor-made for a particular sale. The key terms in Sales Contracts include price; price adjustments in certain events; responsibility for taxes, payment and credit terms; warranties to be given; disclaimers of various warranties; and liability limitations.

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