Types Of Business Contracts

In the world of today there are various types of business contracts because of the fact that there are different types of businesses now. Gone are the days when owning land or trade were the only types of businesses- technology, science and various sorts of discoveries have introduced new types of businesses into the market and that is why there are different types of business contracts. In some cases this may be due to the face that the business is such that different types of business contracts are drawn up while in others it may be due to the nature of the work involved.

One of the many types of business contracts is the non-disclosure contract. This contract is one that must be signed by employees (or employers) in a company where the nature of the work involved in very sensitive and one that should not be known to others. Companies involved in the research and development of nuclear and atomic technology usually draw up these types of business contracts. Once the contract is signed it becomes binding upon the person who signed the contract to keep his/her lips about his work sealed. Not abiding by the contract could have legal consequences and if the organization that the person is working for is a governmental organization he/she could be charged for treason.

Then there other types of business contracts are those that take away the rights of their employees to sue their employers or the company. This isn’t as bad as it sounds because in return the employee is promised a certain sum of money and the employee is basically agreeing to settle for this amount. That way the company’s reputation is spared and the employee is given a good amount of money in the process as well.

Another of the various types of business contracts are those that pertain to insurance. These types of business contracts are signed between two parties: a company that is involved in business of a certain nature (regardless of what the nature may be) and the insurance company. Natural disasters and man-made ones can occur at any time- a fire may occur due to short circuiting or an earthquake may affect the lower floors of the business’ building. In such situations the insurance company would step in and pay for the damage caused/done to the building. These types of contracts can even be signed by homeowners and such like.

The most common types of business contracts are those that require that an employee abide by the rules and regulations of a business. These will usually state the responsibilities of the employee and would bind him to attend the workplace unless there is an emergency and such like. Not abiding by these types of business contracts may lead to a loss of a certain amount of money- some companies cut would give their employees a reduced salary for not attending work for a certain number of days. In other cases the employee may be asked to leave the workplace.