Business term sheet is a business proposal of investment, growth, and development in return for a lump-sum payment. This is a legal agreement between the parties that specifies the terms and conditions of the arrangement. The aim of this kind of proposal is to form a business partnership and facilitate a smooth transition into the long-term partnership.
There are two types of contracts – collective bargaining agreements and contract negotiations. The role of the parties in these forms of a contract is to form a clear understanding about what will be agreed upon and set down in writing. A formal agreement between the company owners to each other about their respective positions, responsibilities, and privileges concerning the business becomes effective after it has been signed by the two parties.
It is only after signing an agreement does the parties automatically become bound by it and hence cannot have any conflicts regarding its terms and conditions. Hence, the advantage of contracts is that they are legally binding and cannot be altered. Contract negotiation is done by professionals and when parties cannot come to an agreement within a specified time period, they can employ the services of lawyers to find a solution to the conflict.
Contracts also safeguard the interests of both the owners and the business owners from being subjected to unworkable agreements. In some cases, unworkable contracts may create delays in the business or reduce productivity. They may also include clauses that are contrary to what was agreed upon.
When there is an over-exploitation of the resources in the business and there is a lack of financial resources to improve the productivity and market share of the business, a legal remedy can be used to bring in efficiency and management changes in the business. In a case like this, the legal expertise employed by the lawyer to prevent the resolution of the conflict may be used to get the business back on track.
Similarly, when there is a conflict between the legal expert and the business owner, the latter might not be able to get the contract amended in a timely manner. In such a situation, the lawyer can be employed to get the contract altered and rectified to a beneficial conclusion. Legal counsel can be used to ensure that the business is properly balanced and do away with the minor differences.
A lawyer can also be hired for proper attention to any pending disputes between the two parties. If there is a disagreement regarding the correct interpretation of the agreement, the lawyers can be used to help resolve it. They can even take up a case against any lawyer if they feel that the other is misrepresenting their clients.
The contract between the attorney and the client should be signed and dated to prevent misunderstandings between the two parties. Any existing or pending litigation between the two parties should also be brought to the notice of the attorney before the work starts. Also, the business owner should consult a lawyer if there is any conflict within the staff or within the management staff.