• Business contracts are used to protect all parties entering into an agreementcontract 20309 image by pablo from Fotolia.com
  
  In business, contracts are used to clarify an agreement between two parties and the consequences of breaking that agreement. Should a disagreement occur, the contract is looked to in order to determine what each party expected in the transaction and which party failed to meet its obligations. While there are numerous types of agreements, there are a few that are utilized most by businesses, such as confidentiality agreements, sales agreements, independent contractor agreements and employment agreements.
  
  

Confidentiality Agreements

• As the name suggests, confidentiality agreements are made to protect the property of a creator. Such agreements are extremely common in the entertainment and software industries. This is because the creation of intellectual property needs to be safeguarded with copyrights to ensure that trade secrets are not leaked. In such sensitive fields, it is very important to safeguard such data to ensure commercial success. Furthermore, the confidentiality agreement is drawn up between two parties where one of them needs the other person, or group of people, to remain silent about the work that they are performing for the first party. This ensures that no data or modus operandi is revealed to anyone outside those who have direct involvement. Thus, by having a confidentiality agreement, you can hope to keep your trade secrets behind closed doors.
  
  

Sales Agreements

• While sales agreements often take place between a merchant and a consumer, many sales agreements occur between two or more businesses. In the United States, any transaction involving $500 or more must be evidenced by a contract to be enforceable. According to the Uniform Commercial Code, a written agreement may be demonstrated by a series of writings back and forth between parties, such as emails or notes. It does not have to be in the form of a formal contract.
  
  

Independent Contractor Agreements

• An independent contractor is a person or company hired to perform a particular project and is not hired as an employee. Agreements with independent contractors must be specific to safeguard against any confusion regarding the relationship between the parties. The reason for this is to avoid negative tax consequences and workers' compensation issues, should an individual be found to be an employee instead of an independent contractor.
  
  

Employment Agreements

• Employment agreements are simple agreements drawn up between an employee and an employer. They cover the rules applicable in the work place, remuneration, duties, responsibilities, duration of the employment, and termination grounds. These agreements must adhere to all the labor laws that are applicable in the state in which the parties are located in order to be enforceable.