What are Commercial Agreements?
Commercial agreements are typically a contract written between business entities or agreements regulating the business relationship between persons engaged or involved in business with each other.
Frequently Asked Questions
A shareholders’ loan agreement records the arrangement between the shareholder and the company whereby the a shareholder in a company injects money into the company. This loan is repayable to the company, with interest, to the shareholder on the arranged terms. The shareholder could demand collateral that may take the form of a variety of assets, including a debenture or shares in the company.
An agency agreement is a legal contract creating a fiduciary relationship whereby the principal agrees that the actions of the agent binds the principal to agreements made by the agent as if the principal had himself personally made these agreements.
A distribution agreement is a contract between a supplier and a distributor whereby the parties agree that the distributor may sell (distribute) the products of the supplier on an exclusive (or non exclusive) basis. Example: where a hardware chain may sell a range of electric garden products to the public.
A franchise agreement is a legal contract whereby a well established business (franchisor) consents to provide its brand, operational model and required support to a third party (franchisee) for them to set up and run a similar business in exchange for a fee and some share of the income generated (royalty).
Business to business collaborations are agreements made by consenting businesses to share resources to accomplish a mutual goal. Collaborative partnerships rely on participation by at least two parties who agree to share resources, such as finances, knowledge, and people.
A purchase and supply agreement is an agreement between a supplier and a buyer for supply and purchase of products. The agreement specifies the terms upon which the parties agree to supply and purchase products from each other.
A service agreement, also known as a service level agreement, is an agreement between a company and a customer, regulating the company’s obligation to check and repair (maintain) equipment or deliver another service for an agreed price during a fixed period of time, at a specified level.
Much the same as a service agreement, a maintenance contracts are agreements under which a service provider agrees to perform maintenance services to the benefit of a consumer., usually on equipment the provider sold to the customer, i.e. a stove or fridge.
A commercial lease is an agreement between a landlord and a business (tenant) outlining the terms and conditions of property rental. A commercial lease is specific to tenants using the property for business or other commercial purposes; versus residential use.
A hire purchase agreement is a contract whereby a person hires goods for a period of time by paying installments, and has the right to own the goods at the end of the agreement if all installments are paid. Hire purchase agreements usually last for a short to medium term, between two and five years.
An information technology agreement is a contract between parties of which the subject matter that is regulated, relates to information technology. This must not be confused with the Information Technology Agreement (ITA) which is an agreement concluded in the Ministerial Declaration on Trade in Information Technology Products in 1996, and entered into force 1 July 1997, and which is enforced by the World Trade Organization (WTO).
An e-commerce agreement or e-commerce related contract is an agreement formed in the course of e-commerce by the interaction of two or more individuals using electronic means, such as e-mail, the interaction of an individual with an electronic agent, such as a computer program, or the interaction of at least two electronic agents that are programmed to recognize the existence of a contract. This interaction is regulated by the Uniform Electronic Commerce Act (Canada) which provides rules regarding the formation, governance, and basic terms of an e-contract. Traditional contract principles and remedies apply to e-contracts.
An intellectual property licensing agreement is a partnership between an intellectual property rights owner (licensor) and another party who is authorized to use such rights (licensee) in exchange for an agreed payment (fee or royalty).
An intellectual property assignment is an agreement whereby the owner of certain intellectual property rights (i.e. a trademark) transfers ownership of those rights to another person (assignee), where after the assignee becomes the owner (registered or otherwise) of the intellectual property rights.
A marketing agreement is a written contract between two or more parties which relates to the provision of marketing services by the one to the other. The specific marketing services are defined and regulated by the agreement. Most businesses entering into marketing agreements require a third party to market or promote their products or services to the consumer market.
A sponsorship agreement regulates the terms whereby a business (sponsor) delivers a sponsorship is a cash and/or in-kind fee paid to the party being sponsored (sponsoree) (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with the sponsoree. The sponsorship is done with the expectation of a commercial return through increased awareness, brand building and propensity to purchase.
A consultancy agreement is a legal contract between a consultant and a client whereby the client buys the services of the consultant for a specific purpose over a specific period. This consultant is not an employee and delivers the service as an independent contractor.
A confidentiality agreement, sometimes referred to as a non-disclosure agreement (NDA), a confidential disclosure agreement, proprietary information agreement, or secrecy agreement, is a legal contract between at two parties that outlines confidential material, knowledge, or information that the parties will share with each other for certain purposes, but wish to restrict disclosure thereof to third parties. The parties agree not to disclose information thereby creating a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets and non-public business information.
A non-circumvention agreement is a contract whereby the parties, usually during the existence of a non-disclosure agreement relating to negotiations, agree not to enter into similar negotiations with third parties or to do anything that may circumvent the other party, thereby frustrating its right and negating the purpose of the negotiations.
A waiver of liability is a legal document that a person who participates in an activity signs to acknowledge the risks involved in his or her participation in that activity and, by doing so, absolves the business or person providing that activity from legal liability.
A release is a contractual agreement by which one individual assents to relinquish a claim or right under the law to another individual against whom such claim or right is enforceable. The right or claim given up in a release usually involves contracts or torts. A general release deals with all possible claims that are in existence or may arise between the parties, whereas a specific release is generally limited to specific and clearly describes claims.
A shareholders’ agreement is contract between the owners (shareholders) of a firm, defining their mutual obligations, privileges, protections, and rights.
A partnership agreement is written agreement between two or more individuals who join as partners to form and carry on a for-profit business. It regulates the (a) nature of the business, (b) capital contributed by each partner, and (c) their rights and responsibilities. A partnership does not have a separate legal existence as is seen with an incorporated business, and the partners are jointly and severally liable for the debts of the firm. Even on withdrawing from the partnership, a partner may remain liable for the partnership’s debts.