Other Popular Business Contracts
Barter agreements are becoming more common business contracts as companies trade products and services with each other. Written barter agreements are important to address the respective rights and obligations of each party, including describing what’s being bartered and the value of those products and services.
Some agreements will involve full barter, where the parties value the trade as being equal without monetary compensation changing changes. Other barter contracts will be for partial barter. For partial barter, what’s being trade by one party has an agreed upon lesser value than what the other party brings to the deal. To make up the difference, money is paid in addition to providing the service or product of lesser value.
Consignment Sales Agreement
Consignment sales contracts have become a popular means for selling products online. Typically an experienced online marketer (the consignee) will take possession of a brick-and-mortar company’s excess inventory or an individual’s unwanted item and sell it via the marketer’s website or on third party sites (e.g. eBay.com).
The marketer will receive a commission off of each sale and remit the balance of the sale price to the seller (the consignor a.k.a. consigner) who placed it with the marketer on consignment. However, if an item doesn’t sell after a period of time (e.g. 90 days), it’s returned to the owner by the marketer, and the contract ends.
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The terms of a consignment sales agreement prepared by your business contracts lawyer are important to ensure both parties are on the same page as to the terms and conditions of any sale by the marketer as consignee. It’s important to note that ownership of the consigned goods stays with the consignor at all times until the consignee sells them to a third party. Depending upon the type of product sold, the consignor may also sign additional paperwork that explicitly transfers title to the purchaser.
Private Label Rights Agreement (PLR)
From eBooks to simple software applications, PLR license agreements are popular method of monetizing intellectual property. The three most common types of these agreements are: PLR Master Resale Rights License; PLR Resale Rights License; and PLR Personal Use License. Note that some people refer to “resale rights” as “resell rights.”
Unfortunately, do-it-yourself entrepreneurs will patch together licenses that create confusion as to what the PLR purchaser is actually receiving, increasing the likelihood of piracy, lost profits, and breach of contract lawsuits.
A poorly drafted PLR resale rights agreement may mislead the buyer into believing that master resale rights have been acquired. Another typical error is using a personal use license (an end user license) where the licensee mistakenly believes there are resale rights to the intellectual property. This is one reason why it’s important to have a qualified business contracts lawyer prepare your PLR agreements.
Q: What does it cost to get an agreement prepared by your business contracts lawyer?
A: It depends. Some are drafted by Business Contracts Lawyer Mike Young for a flat fee as part of a Contract Legal Protection Package. Other business contracts are prepared based on a customized flat fee quote.
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When there’s negotiation with another party, review of the other party’s draft contract, and/or revisions as part of the negotiating process, the attorney’s standard hourly rate applies billed in 1/10th hour increments.