Business Contract Template

How to Write a Business Contract?

There is no particular format a Contract for Business should follow - you are free to add whatever you deem significant to this document. A standard Business Contract Agreement should contain the following details:

1. Identification of the parties. Do not forget to add the parties' mailing addresses and telephone numbers for quick communication.
2. Definitions of the terms used in the document - to avoid repetition, you can clarify what "goods" or "services" mean on the first page of the contract.
3. Duration of the agreement.
4. Full description of the goods or services to provide and receive. Just like a Service Contract, this agreement allows the parties to define the scope of work as specifically as possible. It is done to avoid the situation where one party expects the consideration to include certain actions and perks not established in writing.
5. Payment information. Negotiate payment schedule and interest added to late payments.
6. Insurance and indemnity clause - either an insurance provider or the breaching party will compensate the non-breaching party for any damage or loss arising out of the agreement.
7. Guarantees and warranties that cover all goods and services or a limited to specified parts of the subject matter.
8. Termination clause. It is possible to agree on penalties for the party that breaches the agreement or terminates it early.
9. Special conditions - you may need to add a confidentiality clause, non-compete clause, and other terms applicable to your particular situation.
10. Signatures of the parties and the actual date of signing. If you want to add an extra layer of protection to your contract, you may notarize the agreement.

What Is a Business-to-Business Contract?

A Business-to-Business Contract, also known as a B2B Agreement, means a legal document signed by two businesses to render services for a fee or transfer goods from one company to another - usually, it is a transaction between a manufacturer and retailer. Its main characteristic is the identity of the parties - they are always businesses, unlike in a Business-to-Customer Contract, where one party is a business and another is an individual.

When it comes to a Business-to-Business Contract, companies take their time to make a decision on which product or service to purchase, and the final decision is always based on the profit potential. Individual clients make small purchases for their personal use, and their decision-making process is quick. Otherwise, a B2B Contract must contain the same terms and conditions as any other type of Contract for Business to make the commercial transaction outlined in the agreement valid.

Still looking for a particular form? Take a look at these similar templates:

• New Employee Forms;
• Business License Application;
• Business Sale Agreement.