7 TYPES OF AGREEMENTS AND WHEN TO USE THEM (2)
This is Part 2 of a two-part series. Read part 1 here: https://www.jodelaw.ca/7-types-of-agreements-and-when-to-use-them-1#contracts
8. Contractor Agreement
A Contractor Agreement is a contract between a company and an independent contractor, outlining the scope of work and payment terms.
When to Use: Use this Agreement when hiring independent contractors or freelancers to perform specific tasks or projects.
9. Partnership Agreement
A Partnership Agreement is a contract between partners in a business, clarifying their rights, responsibilities, profit-sharing arrangements, and dispute resolution process.
When to Use: Use a Partnership Agreement when forming a partnership. The business operational framework, roles, and contributions of each partner should be well spelled out.
10. Joint Venture Agreement (JV)
A Joint Venture Agreement is a contract between parties that come together for a specific business venture or project, sharing resources, risks, and profits.
When to Use: Use a JV Agreement when collaborating on a project or business initiative.
11. Shareholder Agreement (SHA)
A Shareholder Agreement is a contract among shareholders. SHAs usually cover shareholders' rights, obligations, dispute resolution and exit strategies.
When to Use: Prepare this agreement immediately if you have more than one shareholder in the corporation.
12. Co-ownership Agreement
A Co-ownership Agreement is a contract between parties that jointly own a property or asset. It outlines their rights, responsibilities, and how the property or asset is to be managed and maintained.
When to Use: Use a Co-ownership Agreement when multiple parties own property or assets together, such as real estate, to ensure all parties understand their rights and obligations.
13. Cohabitation Agreement
A Cohabitation Agreement is a contract between individuals who live together but are not married, detailing their financial and property arrangements and what happens if the relationship ends.
When to Use: Use a Cohabitation Agreement for couples living together to clarify financial responsibilities, property ownership, and arrangements in case of separation, providing legal protection similar to a prenuptial agreement for unmarried partners.
14. Non-Compete Agreements
In a Non-Compete Agreement, one party (usually an employee, seller, or contractor) agrees not to compete with the other party (usually an employer or buyer) within a specified period and geographical area after their employment or business relationship ends.
When to Use:
Employment Contracts: To prevent employees from taking proprietary knowledge and joining competitors.
Sale of Business: To ensure that the seller does not start a new, competing business that undermines the value of the business being sold.
Partnership Agreements: To ensure that partners do not leave the partnership and start a competing business immediately.
Contractor Agreements: To protect proprietary information when working with independent contractors who may have multiple clients.
- Jumi Odepe, LL.B., LL.M., B.L.
Jumi Odepe is the Principal lawyer at Jode Law. She represents clients in Corporate, Commercial and Business Law Transactions including mergers and acquisitions, corporate restructuring, and corporate financing. Jumi also represents clients in Immigration Law and Estate Law matters.
The articles published by Jode Law are intended as general information only and do not serve as legal advice. By reading, the reader understands there is no solicitor-client relationship established. If you have a legal question, consult a lawyer.