Types of Business Contracts
From launching your company to hiring your first employee, business contracts help at every stage. With Legal Templates, you can create customized, state-specific agreements for:
Establish the rights, responsibilities, and obligations of each partner in a business partnership
Partnership Agreement
Determine how your limited liability company will conduct itself and record information for the members' roles and responsibilities
LLC Operating Agreement
Establish the conditions of someone else's employment, including their salary/wage, job responsibilities, work hours, benefits, and employment duration
Employment Contract
Record a relationship between a company and a contractor who works for themselves, including details like the scope of work, expected deliverables, payment terms, and deadlines
Independent Contractor Agreement
Establish a confidential relationship between the sender and recipient of sensitive information to protect its disclosure to unauthorized third parties
Non-Disclosure Agreement
Explain that one party will not hold another party liable for any potential damages, risks, or legal claims arising from a particular arrangement
Hold Harmless Agreement
What Is a Business Contract?
A business contract is a written agreement between two or more parties outlining each party’s rights and responsibilities in a professional exchange. It becomes legally enforceable once it includes three key elements: an offer, acceptance, and consideration (something of value exchanged).
Some business relationships begin with a letter of intent (LOI) or a memorandum of understanding (MOU) to outline general terms before signing a full contract.
Clear terms and signatures protect both sides, helping you avoid disputes and enforce your agreement in court when needed.
When Do You Need a Business Contract?
Use a business contract anytime you’re exchanging goods, services, or sensitive information. Common situations include:
- Hiring a freelancer: Protect your time and money with an independent contractor agreement.
- Selling products or services: Use a sales contract to clarify pricing, terms, and payment, and then use an invoice to simplify billing.
- Starting a partnership: Define roles, ownership, and exit terms with a partnership or founders’ agreement.
- Protecting confidential info: An NDA helps prevent leaks and gives you legal recourse if they happen.
If money, work, or trust is on the line—get it in writing.
How to Write a Business Contract
Creating your own business contract can be quick and simple with Legal Templates. Here’s how:
1. Select Your Template
Based on your business needs, choose the right document, such as an LLC agreement, service contract, or NDA.
2. Fill in Key Details
Add names, roles, addresses, payment terms, and work scope. Our step-by-step builder walks you through every section.
3. Add Protective Clauses
Include optional terms like:
- Liability limits to reduce legal risk
- Non-disclosure terms to protect sensitive info
- Indemnity clauses to define who’s responsible in a dispute
4. Review for Accuracy
For extra peace of mind, you can review the final version with a legal advisor or trusted legal tool.
5. Sign & Store Securely
Use e-signatures or print and sign. Store your agreement online or download a copy for your records.
Don’t skip clauses just because they seem complicated—Legal Templates helps explain every section.
Business Contract Sample
Below, you can view a sample business contract. You can customize the business contract template you need using our document editor and then download in PDF or Word format.
Create Your Business Contract in Minutes
You don’t need a law degree to protect your business. Legal Templates gives you fast, professional-quality contracts that are:
- Easy to customize
- Legally sound
- Built to match your state laws
Start your business contract today with Legal Templates.
Frequently Asked Questions
Is a business contract legally binding without a signature?
A contract may still be legally binding without a signature if there’s clear evidence of an offer, acceptance, and consideration. However, signatures make it easier to prove the agreement and enforce it in court.
Can I cancel a business contract?
You can only cancel a contract if it includes a termination clause or both parties agree to end it. Canceling without legal grounds may lead to penalties or legal action. Use a notice of contract termination to keep everything in writing.
Do I need a lawyer to draft a business contract?
Not necessarily. Legal Templates provides customizable business contract templates that meet legal standards. For more complex agreements, a lawyer can help ensure accuracy and compliance.
Can I write my own business contract?
Yes. You can create your own business contract using a template. Just make sure it includes clear terms, signatures, and all necessary legal elements for enforceability.
How do I enforce a business contract if someone breaches it?
Start by reviewing the contract for any breach terms. You can try to resolve the issue through communication or mediation. If that fails, legal action may be necessary to enforce the agreement.
