Standardizing Contracts
Standardized or standard form contracts are agreements where one party has the upper hand in setting out terms of the agreement, while the counterparty has little to no capacity to affect it. Having a standard form contract can make your business efficient, reduce costs and mitigate risks since it removes the lengthy process of negotiation for every single contract.
These are some examples of standardized contracts.
- A Non-Disclosure Agreement safeguards whatever information the parties will exchange and is usually for the benefit of one party and the protection of their confidential assets.
- Terms of Service Agreements are usually seen on online services that require its users to create an account. The users have no capacity to negotiate the terms and only have the option of accepting or not accepting them in their totality.
- A Non-Compete Agreement restricts employees or contractors from engaging with companies in the same industry as their employer during their employment until a specified period following the termination of their contract.
- Rental Property Agreements are entered into by a lessor and a lessee, with the object being the occupation of a property for a given period. The lessee typically has very little say on the terms of the lessor.
- Employment Agreements govern the relationship between an employer and an employee. While the contents of the contract such as compensation and benefits may be negotiable, the majority of employment contracts are standard and not up for modifications.
