CRUCIAL TERMS TO UNDERSTAND WHEN STARTING A BUSINESS.

Here is our list of the most crucial terms to understand when starting a business.

1. Memorandum of incorporation (MOI)

   MOI is the founding document of the company, and it sets out the structure and governance of the company. The MOI sets out the rights, duties and responsibilities of shareholders, directors and others within and in relation to the company.

2. Shareholders' deal or agreement

   This is an agreement enforceable amongst the shareholders or members of the company.

3. Service Level agreement

   Is an agreement between provider and customer. This contract outlines quality, availability, responsibilities between the service provider and the service user.

   
   

4. Non-disclosure agreement

   This is a legally binding contract that establishes a confidential relationship. The agreement outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes but wish to restrict access to.

   
   

5. Employment contract

   This is a legally binding agreement between an employer and employee that outlines the duties, obligations, and terms of engagement during their working relationship.

   
   
   
   

   Contracts are a collection of terms that parties have reached a consensus on, they are very effective at preventing conflict and contractual disputes in the future. Every business needs a legal drafter to avoid legal mistakes that could sink your business.

   
   

   Get in touch with our expert legal drafters for a tailored watertight contract. Email our office for a discounted virtual consultation on: info@legaldrafters.co.za now!