Business Agreement Glossary
Contracts are an important part of business life. You enter into agreements between you and your employees, landlords or tenants, suppliers, customers and with other companies. They are usually created by lawyers and can be full of legal jargon. Shareholders` agreement – an agreement between all shareholders on how the company is to be managed and shareholder rights. It is a contract between the shareholders. The company itself is not bound by it, as it is not a contracting party. Joint venture – An agreement that allows two or more independent companies to conduct a joint operation and share its costs, profits and losses. Joint venture – an agreement between two or more independent companies in a company in which they share the costs, management, profits or benefits of the business. The exact shares and responsibilities shall be defined in a joint venture agreement. Restrictive Agreement – An agreement between the parties not to cooperate under the agreement with competitors within a defined period of time. Partnership – The merger of two or more organizations to manage a business together.
Obligation – a formal agreement on the debt. It concerns both the agreement and the document it verifies. It is usually issued by companies and is usually backed by the guarantee of a certain property of the debtor. If the debtor is late, the creditor can take over and sell the property. Bonds are often transferable, so the creditor can sell them and there are formal stock markets that trade types of bonds. It is sometimes called an action of obligation. A mortgage is a kind of obligation, but it is always secured, normally against the ground. Franchise – A business agreement that allows a party to do business with the product, property or name of another party. Collective agreement – The concept of agreements between employees and employers, usually involving trade unions. They often cover more than one organization.
Although they can be considered contracts, they are governed by labour law and not by contract law. Also known as tendering – the buyer invites suppliers to bid for stores, usually indicating the specifications and conditions. Application documents include all documents – specification, terms and conditions, etc. – that are sent to suppliers so that they can bid. Employment contract, a legally binding agreement between an employer and an employee. Bankruptcy – the situation in which a person or company cannot pay its debts when they are due (see bankruptcy, liquidation and judicial administration). Liquidation – the formal liquidation of a business or partnership through the realization (sale or transfer to settle a liability) of the assets of the business. This normally happens when the company is insolvent, but a solvent company can be liquidated if, for some reason, it no longer wants to act (see mandatory administration in the financial conditions below). Services A convener for all material things that the supplier or supplier must provide in accordance with the agreement. It includes goods or finished work, as well as drawings, specifications and other related documents.