Business Agreements: Types & Examples

Business agreements protect each party’s rights, clarify what each side must deliver, and define the remedies available if obligations are not met. Without clear written contracts, companies expose themselves to disputes, financial loss, and legal liability across their daily operations.

Contracts for Goods & Services

Contracts for goods and services govern transactions between buyers, sellers, suppliers, and distributors. They confirm what is being exchanged, at what price, and on what terms — making every transaction enforceable and documented in writing.

Each agreement type within this category serves a different commercial purpose. A sales contract between a manufacturer and retailer looks different from a service agreement with a software vendor or a distribution contract covering an entire sales territory.

Sales Contracts

A sales contract is one of the most common types of business agreements, defining the obligations of both buyer and seller in a goods transaction. It sets out what is being sold, the agreed price, delivery terms, and the remedies available if either party fails to perform.

Businesses selling physical goods rely on sales contracts to document every transaction in writing. A sales contract template speeds up the drafting process and ensures nothing is left ambiguous before goods change hands.

Supplier Contracts

Supplier contracts govern the ongoing relationship between a business and the vendors who supply goods or materials. They set out pricing, volume commitments, quality standards, delivery schedules, and the conditions under which either party can end the arrangement.

For procurement teams managing multiple vendors, supplier contracts form the legal backbone of the supply chain. Clear agreements tracked centrally help companies avoid supply disruptions and manage commercial risk across their vendor base.

Service Agreements

Service agreements are a type of business contract defining what a provider will deliver, the timeline, the payment terms, and the standard to which work must be performed. They protect both sides by setting clear performance expectations before work begins.

Any business hiring an external provider needs a service agreement in place before work starts. A service agreement template gives teams a legally sound starting point without rebuilding the document from scratch each time.

Distribution Agreements

Distribution agreements regulate how a supplier’s products reach the market through a third-party distributor. They set out territory rights, pricing, exclusivity terms, sales targets, and the process for handling returns, defects, or termination of the arrangement.

For manufacturers and suppliers, distribution agreements are the commercial foundation of indirect sales channels. Without a clear agreement in place, disputes over territory or exclusivity can erode a commercial relationship that took years to build.

Master Service Agreements (MSA)

A https://miramis.co/content-hub/master-service-agreements-explainedmaster service agreement sets the standard terms governing all future work between two parties, rather than renegotiating base terms for each project. Individual statements of work define the specific scope under the same overarching contract.

MSAs are common in technology, consulting, and professional services, where two companies expect to work together across multiple engagements. Teams can start from an MSA template built around common commercial terms and adapt it to their ongoing relationship.

Employment Contracts

Employment contracts regulate the legal relationship between a business and the people who work for it. They define the role, compensation, hours, confidentiality obligations, and the conditions under which either party can end the arrangement.

The same framework extends to freelancers, consultants, and influencers. Each requires a different contract structure, and getting that structure right protects the business against disputes, misclassification risk, and reputational exposure.

Independent Contractor Agreements

Independent contractor agreements define the working relationship between a business and a self-employed individual hired for a specific project or period. They confirm the scope, payment terms, IP ownership, and the absence of an employment relationship.

Misclassifying an employee as an independent contractor carries real legal risk, particularly in jurisdictions with strong employment protection laws. A well-drafted contractor agreement makes the nature of the engagement clear and reduces the exposure of both parties.

Employment Agreement

Employment agreements are another important type of business contract, setting out the core terms of a full-time or part-time employment relationship. They cover the job title, salary, working hours, probation terms, benefits, and the notice period required by either party.

For HR teams managing hiring at scale, templated employment contracts remove the need for legal review on every appointment. An employment agreement template provides a compliant starting point that can be adapted to each role without starting from scratch.

Consulting Agreement

A consulting agreement formalises the relationship between a business and an independent consultant engaged for specialist advice or project delivery. It defines deliverables, fee structure, confidentiality obligations, and any restrictions on working with competitors.

Consulting agreements protect both sides: the business retains rights over work product, and the consultant knows exactly what is expected and how they will be paid. A consulting agreement template helps both parties start from a professionally structured document.

Influencer Agreement

Influencer agreements govern commercial partnerships between brands and content creators promoting products or services. They cover deliverables, content guidelines, usage rights, compensation, disclosure requirements, and the conditions for requesting changes.

As influencer marketing becomes standard practice, having a written agreement in place before a campaign launches is expected by both brands and creators. These contracts protect the brand’s reputation and set clear expectations from the outset.

Non-compete Agreement

A non-compete agreement restricts an employee or contractor from working for a competitor or establishing a rival business for a defined period after leaving the company. The scope, geography, and duration of the restriction must be reasonable to be enforceable.

Courts in many jurisdictions scrutinise non-compete clauses closely, and overly broad restrictions risk being struck down entirely. Businesses including these terms in employment contracts should take legal advice to confirm the restrictions will hold up.

Property & Real Estate

Property and real estate contracts govern the use, lease, and management of physical premises. For most businesses, office and operational space is one of the largest fixed costs, and the contract governing it deserves careful review before signing.

These agreements cover commercial leases, short-term rentals, and property management arrangements. Renewal terms, rent review clauses, and exit provisions all carry material financial implications that should be reviewed with legal input before execution.

Lease Agreements

Lease agreements grant a tenant the right to occupy and use a property for a defined period in exchange for regular rent payments. Commercial leases include provisions covering the lease term, rent review intervals, permitted use, and reinstatement obligations at exit.

Break clauses, service charge caps, and subletting rights all affect the long-term cost and flexibility of a commercial lease. Tenants negotiating these terms should document agreed positions clearly before the agreement is executed by both parties.

Collaboration & Partnership

Collaboration and partnership contracts formalise the commercial and legal basis for joint business activity. They clarify how decisions are made, how profits and losses are shared, and what happens when partners disagree or want to exit.

Without a written agreement, business partners operate on assumption. Disputes about contributions, ownership, or exit rights become much harder to resolve when nothing was documented at the outset.

Partnership Agreements

Partnership agreements define the legal and commercial relationship between two or more individuals or entities carrying on business together. They set out each partner’s contribution, profit-sharing arrangements, decision-making rights, and the process for dissolving the partnership.

Without a partnership agreement, statutory defaults fill the gaps, and those defaults rarely reflect what the partners intended. A partnership agreement template gives business partners a structured starting point to document their arrangement clearly from day one.

Joint Venture Agreements

Joint venture agreements are also a type of business contract, helping businesses share resources and risks on a defined project without merging their organisations. Each party contributes assets, capital, or expertise, and the agreement governs how profits are split and decisions are made.

Joint ventures are common in market entry, infrastructure, and technology development, where two companies have complementary capabilities but neither wants to merge. Defining governance, IP ownership, and exit rights clearly at the outset prevents costly disputes later.

Memorandum of Understanding (MOU)

A memorandum of understanding (MOU) records the mutual intentions of two or more parties before a formal contract is in place. It is not always legally binding, but it documents the key terms agreed in principle as negotiations continue.

MOUs are widely used at the early stages of commercial partnerships, acquisitions, and joint projects. They give both parties a shared record of what has been agreed, reducing the risk of misaligned expectations when the formal agreement is eventually drafted.

Shareholders’ Agreements

A shareholders’ agreement governs the relationship between a company’s shareholders. It sets out voting rights, dividend policies, restrictions on share transfers, tag-along and drag-along rights, and what happens if a shareholder wants to exit or cannot fulfil their obligations.

Shareholders’ agreements are particularly important in private companies with a small number of investors. Teams setting up a new equity structure can start from a shareholders agreement template and adapt it to their specific arrangements.

Information & Confidentiality

Information and confidentiality agreements protect sensitive business data from being shared with or used by unauthorised parties. This includes trade secrets, business plans, client lists, pricing structures, and proprietary technology.

These contracts appear in almost every commercial relationship where sensitive information changes hands. Due diligence processes, supplier negotiations, employment relationships, and product development partnerships all require some form of confidentiality protection.

Non-Disclosure Agreements (NDAs)

An NDA is a common type of business agreement designed to safeguard confidentiality. It creates a legal obligation on one or both parties to keep designated information private and not to use it outside the purpose for which it was disclosed.

NDAs are signed before commercial negotiations, investor conversations, and any partnership where proprietary information is shared. Having a standard NDA template ready means businesses can protect their information before sensitive discussions begin.

Financial Contracts

Financial contracts govern the financial arrangements between businesses, covering payment terms, investment structures, lending relationships, and equity transactions. They define what is owed, by whom, and under what conditions.

Getting financial contracts right matters. Errors in payment terms, interest clauses, or repayment schedules can affect cash flow, credit relationships, and company ownership in ways that are difficult to unwind once a dispute arises.

Fixed-Price Contracts

A fixed-price contract sets a defined payment amount for a project or deliverable, regardless of the actual time or costs incurred. The client knows exactly what they will pay, and the contractor takes on the risk of delivering within that budget.

Fixed-price contracts work well when scope is clearly defined. When scope is uncertain, they can cost both parties more than a flexible arrangement. A fixed-price contract template provides a starting point for straightforward project engagements.

Time and Materials Contract

A time and materials contract bills the client for the actual hours worked and materials used, plus an agreed margin. It suits projects where the full scope cannot be defined in advance, giving both parties flexibility to adjust the work as it develops.

The main trade-off is cost certainty. Without a fixed ceiling, budgets can escalate. Setting a cap or milestone-based review points reduces that risk. Businesses can use a time and materials contract template when scoping these engagements.

Promissory Note

A promissory note is a written promise from one party to pay a specified sum to another on demand or by a defined date. It is simpler than a loan agreement and is used for informal lending, short-term debt, or as part of a wider commercial transaction.

While simpler in form, a promissory note still creates a legally enforceable obligation. It should specify the principal amount, any interest rate, the repayment date, and the consequences of non-payment to remain enforceable under applicable law.

Loan Agreements

Loan agreements are another type of business contract essential for defining repayment terms. They govern the lending of money between two parties, setting out the principal, interest rate, repayment schedule, any security or collateral, and the events that trigger default.

Loan agreements are used between businesses and lenders, between group companies, and in shareholder loan arrangements. Unlike promissory notes, they are more detailed and include provisions covering prepayment rights, fees, and what happens on default or insolvency.

Stock Purchase Agreements

A stock purchase agreement governs the sale of shares in a company from one party to another. It sets out the number of shares transferred, the purchase price, representations and warranties made by the seller, and conditions that must be met before the transaction completes.

Stock purchase agreements are used in private equity deals, employee equity transactions, and shareholder exits. Businesses involved in a share sale can start from a stock purchase agreement template to ensure core commercial and legal terms are covered.

Other Key Contracts

A range of other contracts are critical to business continuity, risk management, and long-term commercial strategy. These agreements fall outside the main categories above but carry the same legal weight and require the same care in drafting.

From franchise networks to licensing arrangements to corporate restructuring, the contracts in this section govern some of the most consequential commercial decisions a business will make.

Franchise Agreements

A franchise agreement grants a franchisee the right to operate a business under the franchisor’s brand, systems, and standards in exchange for fees and compliance obligations. It governs how the franchise runs, what support the franchisor provides, and the conditions for renewal or termination.

Franchise agreements are long-term commitments, and their standard terms heavily favour the franchisor. Prospective franchisees should review them carefully and take independent legal advice before signing a commitment that may run for five years or more.

Indemnity Agreements

An indemnity agreement requires one party to compensate the other for specific losses, liabilities, or costs arising from a defined event or activity. They shift risk between parties and are used across construction, technology, outsourcing, and other commercial sectors.

Indemnity clauses appear in most commercial contracts as standard provisions. Standalone indemnity agreements are also used where a specific risk allocation needs to be documented separately, before work begins on a project or commercial arrangement.

Licensing Agreements

A licensing agreement permits one party to use another’s intellectual property under defined conditions and in exchange for a licence fee or royalty. The IP includes software, patents, trademarks, and creative work. The licensor retains ownership while the licensee gains usage rights.

Licensing agreements set the scope of permitted use, the duration, the territory, and any restrictions on sublicensing. Clear terms protect the IP owner’s rights and give the licensee certainty about what they are and are not permitted to do with the asset.

Settlement Agreements

A settlement agreement resolves an existing or potential legal dispute between two parties without proceeding to litigation. In exchange for an agreed payment or concession, the claimant gives up the right to pursue the claim further.

Settlement agreements are used to resolve employment disputes, commercial disagreements, and intellectual property conflicts. They must be clearly drafted to ensure the full scope of claims being settled is unambiguous and the release of liability is effective.

Merger & Acquisition (M&A) Agreements

M&A agreements are one of the most complex types of business contracts, governing the acquisition of a company or the merger of two organisations into one. They cover the purchase price, representations and warranties, conditions to closing, and post-completion obligations of both parties.

Due diligence findings, earn-out provisions, and liability caps can all affect the final structure of a deal. Businesses involved in an acquisition can use an M&A agreement template as a reference point for the core documentation required.