A business entity is engaged in many activities .
A business entity may act as a buyer ,procuring goods, raw material, etc. For procurement of goods ,raw material etc. the business entity enters into Agreement with the sellers to safeguard its interest and minimise risk.These Agreements are typically known as Procurement Agreement.
Similarly the business entity would hire services of law firms, chartered accountants, technical experts, consultants etc for which it would enter into Service Procurement Agreement.
The Business entity would also act as a seller, selling its product and service for which Sale Agreement are entered into between business entity and a buyer.The Products and services are channelled through distribution chain comprising of Distributors, sub-distributor, redistribution stockists. The business entity may sign Distributor Agreement, redistribution stockist agreement with its distributors and stockists.
If the business entity runs its business through the franchisee, a franchise Agreement is signed between the business entity and the franchisee.
Some business entities may enter into horizontal Agreements with other such entities. There could be merger, acquision , amalgamation of Companies which is also done through an elaborate agreement .
Typically a business Agreement will have the following among other clauses:
4.Key deliverables of both the parties to the Agreement
Other elements and clauses are designed keeping in view the subject matter of Agreement .