Business Agreements: 31 Types You Should Know
Written By: Ane Morgan
Introduction
Business agreements are the backbone of corporate operations. Whether you are a small business owner, an entrepreneur, or part of a large corporation, understanding business agreements and contracts is essential. These agreements define relationships, responsibilities, and obligations between parties and ensure clarity, legal enforceability, and protection against disputes. From business service agreements to business sale agreements, having a strong grasp of legal contracts in business is crucial for sustainable operations and growth.
Definition
A business agreement is a legally binding contract between two or more parties that outlines the terms, rights, and obligations of each party in a commercial or corporate context. These agreements can take multiple forms depending on the purpose, industry, or type of transaction involved.
In essence, a business agreement is an agreement between two parties or multiple parties that sets out what is expected from each side, protecting all parties involved under applicable law.
Key Terms / Elements / Clauses
Every business contract agreement should include:
-
- Parties involved: Clearly identifying the individuals or companies entering into the agreement.
- Purpose of the contract: Stating what the agreement is about, e.g., sale of goods, provision of services, partnership.
- Obligations and responsibilities: Detailing what each party is required to do.
- Payment terms: When, how, and under what conditions payments will be made.
- Duration and termination: Start date, end date, and termination clauses.
- Confidentiality: Protecting sensitive information shared between parties.
- Dispute resolution: Methods for resolving conflicts, such as mediation or arbitration.
- Governing law: Which jurisdiction’s laws will apply.
Types of Business Agreements
Understanding the different types of contracts in business helps organisations select the right agreement for each commercial situation. Common categories include:
1. Core Commercial & Corporate Agreements
-
-
Business service agreements
-
Corporate contracts
-
Business to business (B2B) contracts
-
Commercial and trade agreements
-
Business sale agreements
-
Business transfer contracts
-
2. Employment & People-Related Agreements
-
-
Employment contracts
-
Consulting agreements
-
Partnership agreements
-
Joint venture agreements
-
3. Financial & Ownership Agreements
-
-
Loan agreements
-
Shareholder agreements
-
License agreements
-
4. Supply, Distribution & Operations
-
-
Supplier contracts
-
Distribution agreements
-
Service-level agreements (SLAs)
-
Franchise agreements
-
Lease agreements
-
5. Confidentiality & IP Protection
-
-
Non-disclosure agreements (NDAs)
-
Confidentiality agreements
-
6. Small Business & General Agreements
-
-
Simple business agreement contracts
-
Contracts for small businesses
-
Formal agreements between two parties
-
Business contract agreements between two parties
-
Agreements between two individuals
-
7. Digital & Document Formats
-
-
Online business contracts
-
Contract papers (physical agreements)
-
Contract agreement letters between two parties
-
Business agreement templates
-
8. Examples & Reference Types
-
-
Binding contract examples
-
Contractual agreement examples
-
When to Use Business Agreements
Business agreements should be used whenever there is a need to formalize a commercial relationship or transaction, including:
-
- Hiring employees or contractors.
- Selling or transferring a business.
- Partnering with another company.
- Purchasing or supplying goods and services.
- Protecting intellectual property.
- Securing financing or loans.
Benefits
-
- Ensures clarity of obligations and expectations.
- Provides legal protection against disputes.
- Helps in risk management.
- Supports smooth business operations and decision-making.
- Acts as evidence in legal proceedings.
Common Risks
- Ambiguous or poorly drafted terms leading to disputes.
- Lack of proper signatures or execution.
- Non-compliance with local or international laws.
- Overlooked confidentiality or intellectual property clauses.
- Potential financial losses due to unenforceable contracts.
Business Agreements vs Other Contracts
While all legal contracts business fall under the general umbrella of agreements, business agreements are specifically tailored to commercial transactions, corporate operations, and partnerships. Unlike casual agreements, they are legally binding business contracts designed to protect both parties in business dealings.
Examples in Different Industries
- Tech industry: Software licensing agreements, SaaS contracts.
- Retail: Supplier agreements, franchise agreements.
- Construction: Service-level agreements, subcontractor agreements.
- Healthcare: Equipment supply contracts, consultancy agreements.
- Finance: Loan agreements, shareholder agreements.
Managing Business Agreements with Contract Corridor
Contract Corridor simplifies managing corporate contracts and business contract agreements. Its platform allows you to:
-
- Store all agreements in a centralized, secure location.
-
- Access business agreement templates and create agreements quickly.
-
- Track signing and approval workflows.
-
- Automate renewals and deadlines for contract between companies.
-
- Ensure compliance with corporate policies and governing law.
-
- Manage risk by monitoring contractual obligations and renewals.
With Contract Corridor, creating, managing, and storing contracts, whether a business service agreement, business transfer contract, or commercial agreement sample, becomes efficient, secure, and legally compliant.
Conclusion
Business agreements are the foundation of every successful commercial relationship. By clearly defining roles, responsibilities, and obligations, these contracts protect all parties, reduce risk, and ensure legal enforceability. Understanding the wide variety of business agreements, from service contracts and NDAs to shareholder agreements and franchise agreements, allows organizations to choose the right contract for each transaction, industry, and situation.
Whether you are a small business owner, an entrepreneur, or part of a large corporation, using well-structured agreements helps streamline operations, prevent disputes, and support sustainable growth. Tools like Contract Corridor further simplify contract management, enabling businesses to create, track, and store agreements efficiently while staying compliant and mitigating risk.
Ultimately, mastering business agreements is not just about legal protection, it’s about building clarity, trust, and long-term success in every business relationship.
Schedule a Demo to get started with Contract Corridor to simplify, track, and secure all your business agreements today.