Legal documents are not only a critical asset for the internal and external day-to-day operations of your company, but also your first line of defense when disputes arise. As your business enters the new calendar year, here are 10 legal documents that every company, regardless of its size or sector, should consider implementing or updating.
1. SERVICE AGREEMENT
Whether you provide goods or services or both, a tailored agreement outlines expectations, timelines, deliverables, and fees while protecting your company’s assets and limiting its liability. It is arguably your best tool for managing relationships and avoiding misunderstandings with your customers.
2. GENERAL TERMS & CONDITIONS
Standard terms and conditions are the legal foundation of any product or service, and they can be incorporated by reference into any service agreement or purchase order. Posting these “T&Cs” on your company website ensures accessibility and transparency for your customers and employees.
3. PURCHASE ORDER TERMS
Getting to agreement on price can prove challenging enough. Why not potentially avoid the added cost of negotiating other commercial terms by having a comprehensive — and fair — set of purchase order terms ready to go?
4. SUPPLY CHAIN AGREEMENTS
Where possible, consider standing agreements with your trusted vendors and suppliers. An optimized supply chain is typically driven by strong agreements that can define delivery and pricing schedules to ensure deadlines are met and prevent unexpected costs. Just as important, they provide legal cover when the unexpected happens, anyway.
5. JOINT VENTURE OR COLLABORATION AGREEMENT
Collaborating with another business on a program or product launch? Before you share things like branding and intellectual property, put the ground rules in writing. Even informal partnerships can benefit from an agreement that covers the basics, such as revenue sharing and decision-making processes.
6. PRIVACY POLICY
If you sell goods or services online, you are necessarily collecting customer data … which potentially means legal liability. A privacy policy that complies with applicable federal, state and local law (and international rules if you have global clients) is essential. Ensure it is both readable and accessible for all employees and customers.
7. NONDISCLOSURE AGREEMENT (NDA)
In today’s market, nothing is more critical than safeguarding your trade secrets and intellectual property. Proposing your standard one-way or mutual NDA when appropriate can save time and money rather than negotiating an NDA for each new business partner, subcontractor, or customer relationship.
8. EMPLOYEE AND CONTRACTOR AGREEMENTS
Ensure every working relationship within your team is clearly defined. Employment contracts and contractor agreements should cover deliverables, confidentiality, compensation, and, perhaps most critical, how and when the relationship ends.
9. GOVERNANCE DOCUMENTS
If your company has been in business for several years, your governing documents (e.g., corporate bylaws, operating agreement, partnership agreement) might no longer align with your business plans. It is important that company basics like valuation of shares or owner buy-sell restrictions reflect what company leadership currently expects.
10. SOCIAL MEDIA POLICY
Given the recent proliferation of legal actions related to employee statements made on social media, it is prudent to develop and issue a detailed policy that outlines your expectations for employee on-line behavior. Providing your team with clear guidance on what is unacceptable can avoid legal and reputational troubles down the road.
For more information, contact Bill Speros at 814/870-7764 or wsperos@mijb.com.
Bill Speros is a partner at MacDonald Illig Attorneys. He counsels clients on commercial and government contract formation and disputes, and litigates related matters in state and federal courts and before administrative tribunals.
