Seven Contracts Every Small Business Should Have in Place

Most business disputes aren't caused by bad people. They're caused by unclear expectations: who owns what, who pays when, what happens if someone leaves. Good contracts make those expectations explicit before they become arguments.

1. Founders' or partnership agreement

Sets out ownership, roles, decision-making, vesting, what happens if a founder leaves, and how disputes are resolved. It is the single most important document for any business with more than one owner.

2. Customer terms or master service agreement

Defines scope, pricing, payment terms, delivery, warranties, limitation of liability and termination. For repeat customers, a master agreement with individual work orders saves renegotiating every time.

3. Vendor and supplier agreements

Quality standards, delivery timelines, pricing, penalties and confidentiality, especially important where a supplier is critical to your operations.

4. Employment agreements and offer letters

Role, compensation, probation, notice period, confidentiality, IP ownership and non-solicitation. Pair them with clear HR policies.

5. Non-disclosure agreements (NDAs)

Before sharing business plans, pricing, technology or client lists with potential partners, investors or vendors.

6. Intellectual property assignment

Ensures that work created by founders, employees, freelancers and agencies (code, designs, content, logos) belongs to the business. Without it, ownership can be disputed, which investors will flag in due diligence.

7. Website terms and privacy policy

If you sell or collect personal information online, clear terms of use and a privacy policy are essential, and data-protection obligations are growing.

Practical tips

• Put it in writing, even with friends and family. Especially with friends and family.
• Use a dispute-resolution clause, often arbitration or mediation, to avoid long court processes.
• Pay the correct stamp duty. Insufficiently stamped agreements can cause problems when you need to rely on them.
• Review contracts as the business grows. Templates that worked at ten customers may not work at a thousand.

How Advest can help

We draft and review founder, commercial, employment and IP agreements in plain language, aligned with your tax and compliance position. See our legal services.

This article is general information, not legal advice. Please consult us about your specific situation.