In some complex transactions, parties may reach an agreement which is not enforceable and is applicable as per the circumstances. Such a preliminary agreement can be considered as the Memorandum of Understanding, Letter of Intent. Memorandum of understanding might be useful when a specific real issue, such as getting an authorization from the government is required.

Who should write memorandum of understanding?

Memorandum of Understanding plays a vital role in specifying the different issues such as final price, when & how the delivery will occur, terms & conditions, specific products and services etc among the parties. Make sure that the task of the memorandum of understanding is to maintain the agreement and decisions on both the sides. Instead of using complex language it should be written in plain words keeping in mind that the main purpose is to maintain the same legitimacy that a verbal agreement would have.

How to use a Memorandum of Understanding?

Once the memorandum of understanding has been written don’t immediately show it to the other party members. Pause for a moment and let your team to have a look at it so that any error could be corrected and this will help you to appear more credible. In every negotiation there are some aspects that might not have been resolved, you can leave them out of the memorandum of understanding. When an agreement has been finalized after a principled statement of negotiation, it's an ideal opportunity to record on document what has been consented for.

The memorandum of understanding is the final document that is made to confirm that both the parties have genuinely achieved an agreement with mutual consent. Preparing Memorandum of Understanding is not considerably harder than it looks, rather it needs attention. It must cover the essential parts of the conversation by understanding the negotiation and their agreement over the final value, the products, services, how to deliver the product and much more. Once the memorandum of understanding is created it will keep the other side members to attempt for making any changes in the terms and conditions of the memorandum of understanding.

Why Memorandum of Understanding is required?

You might have heard about many negotiations that after some time of agreement got unraveled. What may be the possible cause for such a deal that was about to be finalized get a fall through? What is being missed? When parties are having their conversation or negotiation over some point then its all comes under a verbal agreement, the missing part is written documentation that both the sides require to agree upon. Peoples usually forgot few points that have been discussed or about what was agreed and what was not, which is why the problem occurs and a verbal agreement leads to a failure. In order to avoid this letter of intent or memorandum of understanding is required so that both the parties may believe that what they have agreed upon. A good negotiator knows the value of memorandum of understanding.

What is Exclusive or Non-Exclusive memorandum of understanding?

A memorandum of understanding can be elite or non-elite both. When exclusive MOU is prepared then parties are kept restrained from agreeing with a similar memorandum of understanding with other entities until the term of first MOU is finished. Whereas on the other hand for non-exclusive MOU the parties are allowed to enter into another similar Memorandum of Understanding with other entity. If in case, you are uneasy that your rivals may likewise approach your party and may begin transactions with them, then in this you can go into a MoU on a selective premise with another party. This would imply that amid the term of the Memorandum of Understanding, your party is banished from consulting with some other entity.

What Is The Role of Confidentiality in MOU?

It is essential to understand and analyze the nature and present state of other party with which you are going to negotiate. We all are aware that no party invests without gaining complete knowledge about the other party which is going to invest with you. If you want to make sure that your information have not been shared with your rival parties then a very important clause known as comprehensive confidentiality must be included in every memorandum of understanding. Before writing a memorandum of agreement you must point a clause which states that all the statements exchanged between the parties will be kept confidential and will never be disclosed in the public. MoU could be a one page document as well as it could contain several pages there is not a specific format or it. The contents and its form is completely dependent upon the deal that you are going to present the agreement with your clients. It make sure that after signing an MOU, parties cannot back out of a deal under any circumstances without facing any consequences.

What is a Franchise Agreement?

A franchise agreement is a legal, binding contract between Franchisor and Franchisee. Thus a franchise agreement grants a franchisee the right to use the franchisor's system, proprietary marks to operate a franchised business. Thus franchise agreement in which the franchisor lends the trade name or business system to other person/entity. The contract shall define the brand name that will be used, the length of franchise agreement, clauses dealing with penal provisions, ranging from fines, compensation, cancellation of the franchise. The Indian franchising industry has seen vigorous development over the previous decade. In spite of the financial subsidence, the yearly development rate of the franchising business in India has stayed positive and is as of now pegged at 30%-35%.

Advantages of Franchise Agreement

Business privilege: A franchise agreement allows one to access to the trademarked business logo, the products and all of the marketing expertise that a franchise has to offer. The advantage to a franchise agreement is that it legally allows the person/entity to use a known trademarked business name and logo as part of business plan. Control of the brand: The franchiser after entering into the contract shall be able to specify the terms and conditions of the usage of brand, penalties and rules and regulations are clearly defined.

What is the importance of quality franchise agreement?

'Quality' of franchise agreement might be surveyed on various parameters including: clearness in the specified reason, comprehensive/loophole free character, unambiguous. arrangements/terms/conditions with no extension for inconsistency, a way of presentation, and most critical enforce ability. A franchise agreement is an agreement between the Franchiser and the franchisee which characterizes their relationship, rights and commitments. 'Quality' accepts significantly more important in a franchise arrangement because of the inalienable business and operational complexities in such arrangements. A quality franchise agreement must effectuate the hidden cooperative connection between the Franchiser and the franchisee.

What Are The Key Points in Franchise Agreement?

• Reimbursement Provisions. Be careful of the loss or harms that are not caused specifically by the acts of you or your representatives. You may ask for dialect, which does not expect you to reimburse the franchisor in the case, if you follow the methodology and arrangements of the franchisor.
• Advertising. Arrangements that expect you to spend a dollar sum or some percent of sales on publicizing might be brought down amid your initial couple of years of operation.
• Restrictions on the products that you wish to sell.
• The Transfer and Assignment Section. Be certain your lawyer deliberately audits this segment and that you comprehend your duties and rights.

These are few portions of the more important cases which you must negotiate while making franchise arrangement. Ensure that before you sign on the "dotted line" you completely comprehend your commitments and are alright with the last franchise agreement.

What does franchise agreement include?

The franchise agreement is a contract between the franchisor & the franchisee. Before signing the franchise agreement it is mandatory to go through the FDD i.e. Franchise Disclosure Document. FDD gives clear data about what one could anticipate from the settlement, the franchisor and the franchisee's name, the sort of franchise that is being purchased, details regarding past execution of the franchisor with the project, the region, promoting and publicizing strategies and the sort of help that would be reached out to the franchisee and other important data as well. There are few aspects in the franchise agreement that you have to give more concentration up on. The underlying expenses, the franchisee's commitments, litigation's, franchisor's commitments and income claims are few such aspects. You must learn about the financial performance of the business to get a clear picture by this document. A good franchise agreement will contain all these and numerous more which will make your relationship with the franchisor a transparent one.

What points you must check before signing the franchise agreement?

The franchise agreement is the absolute business connection between the two parties franchisee & the franchisor. All franchise agreement are not indistinguishable, but rather they contain some similar points few of them are listed below have a look on them:- Domain Guidelines-Certain region are assigned in which the franchisee may work together. Charges Payable to the Franchisor- This incorporates the aggregate investment, franchise fee charges, and when the eminences are to be paid. Services provided by the Franchisor- The training 7 support, promoting duties, and the products and services to be given by the franchise. Renewal of Agreement- The particular time frame of the agreement is defined here, and also the details related to the renewal. Duration is somewhere about to 5 and 20 years. Publicizing And Promotions- The franchisor must support the content, appearance, and recurrence of publicizing executed by the franchisee. Transfer Rights- Franchisors commonly maintain whatever authority is needed to endorse the terms of any exchange and the transference. Likewise, franchisors determine that they have the privilege of first refusal or to purchase back a franchise. Since franchise agreement is the coupling contract between the franchisor and the franchisee, we usually suggest that must employ an experienced professional to audit the franchise agreement. A lawyer who is inexperienced with the laws won't meet all the requirements to guarantee your complete understanding of the points of interest that are discussed in the franchise agreement.

What is Joint Venture Agreement?

When looking to grow in the market world we often look for hooks to hold on to, to go forward in the stream of business. In such situations joint venture agreement comes into play. It’s an effective tool for the exchange of resources and shared gains.A joint venture agreement is an arrangement where two companies develop a separate entity to their mutual benefit. It is regarded as sharing of resources, capital, personnel, facilities. Thus a joint venture agreement is entered by a group of individuals/companies to do business mutually by collaborating for a particular project that shall be legally binding. Usually a memorandum of understanding (MoU) is entered before entering into joint venture agreement.

Advantages of joint venture Agreement

Expertise: This agreement helps in achieving expertise to the company it may not have or were not willing to invest in acquiring itself. A joint venture also provides a company with a way to exit from a secondary business or to enter a new business with less of a financial commitment if it were to do this on its own. No loss to existing entity: With a joint venture agreement, the entity still remains independent and separate from the venture. Profit at low cost: joint venture is created to complete a certain task or a project. So for small scale enterprises, joint venture is a good solution as it is profitable and the cost is low. Procedure

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Joint Venture Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Joint Venture Agreement accordingly.
• The draft Joint Venture Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

In this two or more, basically multiple companies or simply entities representative of their parties or come together and agree to share their resources.The resources may be monitory, technology, expertise, human resource or in the matter of connections or fame of one of the entities, which will in-turn promote other joining entities with it along with it’s established name in the market.

What's a joint venture agreement like?

In a joint venture agreement, it is very much likely for one of the company to be stronger or bigger than the other, however both benefit from each other as the motive here for a joint venture agreement is to compliment other company’s resources. Sometimes it’s an already established big company that will take help from the local small companies to flourish in a new area where the bigger company is relatively new as it entered from other region. This proves to be an efficient way to spread.

Why Do We Need Joint Venture Agreement?

One must keep in mind that it’s highly important to choose the right company to join hands with, as it could prove to be fatal or at least worse to pick a wrong company or entity than stepping into a market alone. A bad decision could also turn the whole idea of starting the business to nothing, taking it back to square one. Hence, one must know what they are lacking and it is safe and wise to have such an agreement with an either already established company or multiple smaller reliable companies that may provide you with a guidance of their experience and skills. These other companies are the hooks that you hold one after another to go forward in a business stream.

What Can Joint Ventures Do For Your Business?

The joint venture agreement is strategic and resource based, it is usually signed for 5 – 7 years which is a short term agreement but if the owners benefit, they could jointly choose to extend the agreement and enjoy the shared profits and growth. It starts with a blue print of strategy, when you have resources to offer other business partners you can negotiate the alliance agreement. However, even if you don’t have the financial means, man power or any physical source to provide, you could still have a joint venture agreement by committing to provide other things like expertise, skill, work ability and decision making or problem solving abilities. One can enter a joint venture agreement even based on their talents, here your company gets the benefits of physical sources from others while you yourself with your people simply enter work, so this could also be one of the forms of joint venture agreement.

Why Do We Need A Joint Venture Agreement?

There are numerous motivations to go into a joint venture agreement. Numerous individuals try to save their cash by skipping this step but it is very important. In any case, before you do, consider these reasons why you ought to get a legitimately authoritative agreement. You are going into a joint agreement for a reason, you are investing on the task, sharing obligations and risks, and partitioning the benefits. The joint venture agreement is the structure on which you will assemble your marketable strategy and to accomplish the desired tasks. Everything should be sketched out, investigated and settled upon before you begin or the entire task could be a fiasco.

What is a Founders Agreement?

A founders agreement is usually referred to as shareholders agreement, is a written document that deals in cases such as relative split of the equity among the founders of the firm, also the fact that how long the founders will have to remain with the firm for their shares to fully vest. Thus it extends the role and responsibilities of the founding members of a company, the equity vested in them etc. Founders agreement covers various aspects that the founders undertake.

Why do you need a Founder’s Agreement?

The most important reason a Founders Agreement is advised is that it avoids any ambiguity that might arise in the future with respect to the management of the company and business relations between the founders. It is able to identify the prospective risks and complications along with supplying provisions for dealing with the same. Thus it is always recommended that a written Founders Agreement must be drafted after consulting an expert as per the requirements of the business and understanding of the co-founder.

What to consider before the drafting of Founders Agreement?

Before entering into a Founders Agreement, the co-founders must undertake a sincere dialogue to create an understanding about issues like ownership, management, remunerations, compensation, investments, the board of directors, etc. It is essential for the founders to have clarity which shall then be reflected in the Founders Agreement. The components of the Founders Agreement should be discussed thoroughly to be able to arrive at a detailed and conclusive result. A well-drafted Founders Agreement helps to avoid situations which may possibly hinder the development and cause uncertainty in the management of the business. Also, a wise investor ensures that during the due diligence, the Founders Agreement is scrutinized. It is always preferred to approach an expert consultant to assist in the drafting of a Founders Agreement. This ensures that the interest of founders and the business are secured in the best possible manner.

What are the Essentials of a Founders Agreement?

A Founders Agreement is a legal document drawn at the time of the incorporation of the business to avoid ambiguity regarding roles, responsibilities and payments/ remunerations of each of the co-founders. It sets up the goals and projections of the co-founders. It must be free from all the loopholes that might be exploited at a later stage. Also one must ensure that it must be detailed, thorough and water-tight. Some of the clauses that are essentials to a Founders Agreement are as followings

• Definition and scope of the business
• Ownership
• Details of capital raised (by founders and investors)
• Roles and responsibilities of each co-founder
• Compensation of the co-founders
• Exit formality for founders
• Dissolution of the business
• Dispute resolution and governing laws
• Miscellaneous provisions relating to

1. intellectual property rights,
2. non-compete clauses,
3. loans from founders,
4. sever ability etc.

Apart from these, the clauses may be added according to the requirements of the business and understanding of the co-founder.

Advantages of Founders Agreement?

Clarity: It gives clarity between the founders. There are certain matters which are not discussed between the co- founders. Thus, this agreement provides clarity of doubts, decisions and terms. Segregation: The roles and duties are clearly segregated and defined through founders agreement. Procedure of Founders Agreement?

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Founders Agreementby you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Founders Agreement accordingly.
• The draft Founders Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What is Share Purchase Agreement?

The share purchase agreement is an agreement in which terms and conditions are finalized relating to the purchase and sale of shares of a Company. It is used to transfer the ownership of shares in a company from a seller to a purchaser. A Share Purchas Agreement (SPA) is signed between two parties where there is an agreement between the seller and the buyer. The seller agrees to sell the mentioned number of shares at a specific price to the buyer. The main goal of the share purchase document is to demonstrate that the terms of the agreement were commonly settled by both the seller and the buyer. Such an agreement specifies the number and the quantity of shares to be sold, the conditions precedent, and the agreements by the two parties. The shares will then be dispensed after this Share Purchase Agreement has been signed.

What Are The Benefits of Signing Share Purchase Agreement?

Due Diligence- A Share Purchas Agreement is a fundamental business process which is carried out when an investor is being included. While numerous new organizations adopt an easygoing strategy to such issues, the absence of such an agreement can have a few unwanted consequences on their business. Protect Parties- Such an agreement document gives an opportunity to both the parties to protect their interests before the shares are exchanged. A Share Purchase Agreement covers each part of the transaction and is pivotal for the two parties to look at every clause canvassed in the document and understand its significance.

Who shall need a share purchase agreement?

When any individual or corporation is selling or purchasing shares in a company to or from another business entity, a share purchase agreement should be used.

What information to put in a share purchase agreement?

• The purchaser of the shares.
• The seller of the shares.
• The company from which shares being sold.
• The value of shares.
• The law that governs the agreement.
• The type of shares that are being sold.

Procedure for Share Purchase agreement

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Share Purchase Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Share Purchase Agreement accordingly.
• The draft Share Purchase Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What is the Shareholders Agreement?

A shareholders agreement is an arrangement among a company's shareholders describing how the company should be operated and the shareholder's relationship, the management of the company, ownership of shares and privileges and protection of shareholders. Thus shareholders agreement contains rights and obligations of shareholders of a company, and it also covers matters, governing the management and the structure, initial funding, as well as the administration and business activities of the Company.

A shareholders Agreement is a significant and useful document, because it provides a mechanism for setting out the principles. Upon which the shareholders or partners, in a joint venture agree to run their business.

Defines rights: A shareholders agreement is helpful in defining the powers of a shareholder and the rights one obtains.

Shareholders Agreement Procedure

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Shareholders Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Shareholders Agreement accordingly.
• The draft Shareholders Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What are the main components of shareholders agreement?

There are some extremely vital key points that must be incorporated into a Shareholders Agreement. Avoidance of any of these parts will render the understanding inadequate and ineffectual. The first thing that should be specified is the structure of the organization and the manner in which the value of the company will be divided among the investors. Issues like whether the agreement involves all investors or shareholders or just a couple, this should be specified. With respect to the status of the shares, if in case, any shareholder quits must be specified. The Shareholders Agreement must incorporate the names of the investors, board members, and other managers & officers. A Shareholders Agreement must contain the important strides to be taken if there should arise an occurrence of disputes. Details about how ownership buyouts ought to be dealt with must be given. The confinement on new value issues is a vital component of the Shareholders Agreement. All the information provided must be accurate and complete to set the tone for the business operation.

What are the benefits of shareholders agreement?

A shareholders agreement is essentially an understanding made by investors to sidestep the default laws of your nation that are pertinent. In case, when disputes occur between the shareholders then these default laws are used to tackle the issues. Having an investors understanding can be favorable to you in many cases. This agreement characterizes the roles, responsibilities, and function of every investor thusly preventing a future dispute. Extra rights and confinements on a portion of the authorities with investors that have lesser shares can also be chosen.

Advantages of having a shareholders agreement are as follows

• You will have the capacity to control the ownership of shares by approving the transfers in few conditions like mental inability or liquidation or death.
• The guidelines on instalments, as well as profits, and other advantages of the directors can be set out clearly.
• You can give assurance to the investors that possess under 50% or the minority holders of the organization.
• The money related part of the organization can likewise be chosen pre-hand.
• You can control the removal, contracting or employing the executives and the terms of their business.
• You can likewise authorize a few limitations with respect to the organization's opponent.
• You can choose how the resolution of issues will go.

What does the shareholders agreement provides?

The shareholders agreement lays out a controlled structure for all investors to guarantee that their rights are secured and their commitments and obligations has been defined clearly. Directions on how an individual can join the organization as another investor is mentioned. Stipulating the way toward purchasing and selling the shares, and the people who are permitted to exchange them, and at what time are mentioned in the agreement. It gives the resolutions when business is being sold and how to deal with such disputes. The forces of non-proprietor company executives are recognized. Stipulations with respect to an investor’s lack of ability to play out his/her function because of medical problems is defined.

When to Set Up Shareholders Agreement?

It might appear to some individuals who are beginning with a business venture with different people that the shareholders’ agreement is not necessary. This is particularly valid with off-the-shelf organizations. It is however a tremendous risk for both the parties to set aside the main points of such agreement particularly when the business is already capable of making benefits. There are business obstacles you need to confront when you are in activity and you need to process, terms, and conditions to allude to. An accomplice should need to sell their share and some other may drop out and you won't have a solution for circumstances like these. There is no specific time when shareholders agreement is made. It can be built amid the improvement of the company.

What is Master Service Agreement?

A master service agreement is an agreement which specifies performance objectives and outlines the responsibilities of both parties. It is a contractual document that lists the current and prospective services to which the agreement applies. It is a contract in which the parties agree to most of the terms that will govern future transactions or future agreements. It provides accountable framework for the services to be provided. Sometimes contracting parties conclude that they need to go into a long haul arrangement where the merchant will furnish the customer requirements by offering services supporting an extensive variety of projects over a long time span. The customer may not be in a situation to anticipate every last task that may come up, but it is sensibly certain that the services will be regularly needed. Therefore, parties decide to enter into a master service agreement.

Advantages of Master Service Agreement

Numerous organizations utilize authoritative formats, or simply reorder older formats, starting with one contract onto the next. This usually happens when moving rapidly is required. For instance, an opportunity for partnership may all of a sudden emerge, or a planned customer may ask for a nonstandard service instantly. By executing a master service agreement when the time isn't a concern, organizationscan avoid the potential issues that emerge from inadequately developed contracts. In this way, MSAs enable organizations to maintain a strategic distance from legally binding disputes and lessen the danger of litigation. As we know that the working environments, innovation and markets always change, and the organizations must screen MSAs and make updates whenever necessary.

Have a look at two benefits that are caused by MSA:-

Simplifies the criteria: The criteria is simplified through a master service agreement as it describes the issues beforehand they are likely to occur. Well defined method: It affiliates programs which are often used to define how two entities should function collectively. Thus, it is a well-defined method of doing a particular service. Procedure

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Master Service Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Master Service Agreement accordingly.
• The draft Master Service Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What Must Be Included In A Master Service Agreement?

• Confidentiality-This segment normally requires the seller to keep all the data, information and materials of the client found amid the execution of the services to maintain the privacy& not to impart it with third parties. If a court requests that the seller uncover the private data, thenthe vendor will tell the client first and allow the client to acquire a defensive request from the court. The information which is public does not require such process.
• Invoicing-The master service agreement as a document clarifies when the client's instalment obligation begins. The dealer needs the commitment to start upon the date showed in an invoice, while the client needs the commitment to not appear until he gets the invoice.
• Payment Terms-The parties usually negotiate over the payment terms. The time allotment which the customer can debilitate before making a timely instalment relies upon how much dealing power one party possess. Few clients even demand not paying a receipt until the point when 6 months have slipped by.
• Term- Master Service agreement demonstrates a term during which the parties can execute proclamations of work. The very common mistake that both the parties do is that they forget after signing the master service agreement and they simply focus on concentrating on the announcements of work. Subsequently, the master service agreement expires and they continue executing the tasks which lead them to a situation of confusion.
• Impediment of Liability-Merchants frequently demand an impediment of obligation arrangement, which confines the capacity of the customer to acquire huge damages or harm of amount from the seller if it wins a judgment in litigation. Clients usually push back on including this kind of provision.

What Is The Purpose Of Master Service Agreement?

Organizations utilize master service agreement to encourage and rearrange the negotiations of the contract signed. With an MSA, an organization and its clients work through the majority of the wide and significant tasks that could wreck an agreement upfront. By doing this ahead of time of a specific contract, organizations can concentrate more on legally binding concerns, for example, cost and time allotment, when a real contract emerges. MSAs are regularly mind boggling documents and by arranging these in advance, organizations may stay away from time pressures and can easily identify the issues.

Why Do We Need Master Service Agreement?

The primary two reasons, why organizations utilize master service agreement are on account of that they give reimbursement and allocates risk. Reimbursement is a term that portrays a strategy in which one organization, or a party, defends the other party against a portion of any future misfortunes. The parties that consent to repay any harms caused by them or some other party has caused is known as the reimbursing party. They give the legal counsellors and deal with legitimate charges related to the act of litigation. The terms that are frequently utilized as a part of the procedure of indemnification are defend, release and reimburse. Defending portrays a circumstance where one party pays for the legal advisors with a specific end goal to safeguard the side at fault, releasing implies that a party won't get sued for harms and reimbursement alludes to paying for harms to the third party. The best strategy is to enlist a legal advisor and utilize a master service agreement format with a specific end goal to abstain from committing any errors or just marking an awful contract.

What is Service Level Agreement?

A service level agreement is an agreement between the service provider and the customer. Service level agreement is output based specifically to define what the customer will receive. Thus, it is a legal document between the service provider and the user of service, it defines the nature, quality, and scope of the service to be provided.

Service Level Agreement can be defined at different levels and differentiated in types:

• Customer-Based Service Level Agreement covering all the services utilized by individual customer groups. For example, an SLA between a Service Provider of HR services and the HR department of a company.
• Service-Based Service Level Agreementbetween a large number of customers using a particular service and the service provider. For example, an SLA between a telecom service provider and all its customers using a particular service from the provider.
• Multi-level Service Level Agreements divided into levels for directed towards different sets of customers for the same services, in the same SLA:

1. Corporate Levelcovering all the issues which are same for the entire organization.
2. Customer levelcovering the entire issues specific to a customer. Service Level covering all the entire issues relating to a specific service.

Service Level Agreement is one of the foundational agreements between the service providers with the customer. Between the Master Service Agreement which establishes the general terms and conditions and SLA, the SLA adds greater specificity regarding the services provided.

Why are Service Level Agreement essential?

Service Level Agreement (SLA) is important for the reason that it states following:

• Clear and unambiguous details of the service are provided with service days and hours;
• Defines the problem that might occur and their gravity, also providing the reacting time;
• The consequences of missing targets;
• SLA lays down the customer rights and penalties in case of non-performance which ensures that the relationship between the customer and the service provider remains clear and positive;
• What is the procedure, hierarchy and the expertise of the service provider;
• It mentions the guaranteed areas in which the service shall be provided and what shall be exempted;
• What is the method of problem resolving;
• SLA defines the commitments made to and by the customers and well-defined indicators for the customer service which minimizes the chances of disappointing the customer and keep a check of levels of customer satisfaction.

What terms does a Service Level Agreement include?

A well-drafted SL Agreement generally discloses the following:-

• Definitions and interpretations of the terms used in the agreement
• Scope of SLA,
• Duration of the SLA,
• Reliability,
• Customer support arrangements,
• Point of Contact, escalation and a communication matrix,
• Mutual Responsibilities,

Financial Provisions

• Payment of recurring fee
• Monthly fee
• One time charges
• Reimbursements
• Miscellaneous fee
• Format of Invoice
• Term period of payment
• Clause for Non-Disclosure of Confidential information,

Miscellaneous

• Arbitration
• Notice
• Amendments And Waiver
• Compliance With The Law
• Governing Law
• Jurisdiction
• Warranties and Guarantees
• Indemnity
• Severability etc.

Advantages of Service Level Agreement

A Service Level Agreement (SLA) is important for both the person providing a service and the one receiving it. It serves as a final word. By this, both the parties play very close attention to the details making it so there is no confusion. All the services that the customer needs are included in the SLA. This means that the customer knows what to expect in terms of quality of service and other certain parameters are defined, making it a necessary document.

Service Level Agreement Procedure

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Service Level Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Service Level Agreement accordingly.
• The draft Service Level Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What is Vendor Agreement?

A vendor agreement is an agreement which defines the provisions and conditions of work to be performed by the vendor. Vendor is typically used in describing the entity that has paid for goods that are provided. The basic points included in this include date, time and location where services must be provided. If you are a seller or in vendor business then there must be cases when you might require a vendor agreement document. It serves as a composed insurance between two parties with mutual consent. You may have an agreement with your customers or your providers when you are into customer/supplier business transaction. A Vendor agreement is usually made when your business is small and you have couple of products or services for sale.

Advantages of Vendor Agreement

• Increases Efficiency:With a vendor agreement, one can clearly determine the financials, security policies, and other key data that is required for the same which helps in increasing the efficiency and develops an effective vendor and supplier relationship.
• It identifies and manages the vendor's risk:Through vendor agreement, there is a complete description of duties, rules, regulations and identification of vendor's risk is defined.

Procedure

• A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Vendor Agreement by you.
• Once the objectives of the same are clear, the lawyer shall draft a sample Vendor Agreement accordingly.
• The draft Vendor Agreement shall be sent to you, for your review.
• The whole process takes around 3-4 working days.

What is the Requirement of Vendor Agreement?

Great structures of vendor agreement portray the terms and conditions in a very clear & succinct language. To compose an excellent vendor agreement document, you ought to follow few steps to cover everything that is required and necessary for it.

• To begin with, you ought to show the dates in the first page of your vendor agreement and demonstrate the address of the two involved parties in the document.
• Now, to demonstrate that your organization is legitimately permitted to sell the items and services engaged with the agreement, it is critical that you clarify your vending license with in the agreement.
• Next, you need to diagram each one of the expectations from the vendor before composing the real frame. It may include costs, taxes, delivery dates, paying modes, compensation and periods, etc.
• You must demonstrate the way that you and your customer have consented to manage the tax imposed on the products & services.
• Last but not the least specify the way to give deliveries for your received order, and how the order are going to be paid.

What are the principal Features of Vendor Agreement?

The primary key points of a vendor agreement are the cost, services and products, what will occur if something doesn't go as expected (possibilities), and the dates for final delivery, etc. The aim of the vendor agreement is to be through, every condition should be incorporated into the agreement carefully. You would prefer not to get scorched nor do you wish a merchant to suffer amid this procedure. An organization which is reasonable for its vendors gets a strong notoriety and everybody likes to make deal with the owners that treat suppliers decently. If in case, you appropriately request citations for your prerequisites this procedure will guarantee you never pay more than what the current market permits.

What is the Negotiation for Vendor Agreement All About?

If in case you are negotiating with a familiar business partner then it can also be closed and finalized with a simple handshake but most likely written agreement is a highest quality level agreement. Since accounts, guarantees, deposits & finances and much more are included. The way to get a vendor agreement finalized among the parties requires preparation, a first class introduction and discussion on the key highlights.

The opposite side may ask for specific modifications as well as concessions. Evaluate & analyse the net impact of such changes. It is fine to say that they are asking for too much? Is the demand feasible? Very often we take a disagreeing reaction or negotiations too personally, get over it and depersonalize it. Take a look at the proposal in a simply target way and acknowledge it, re-submit it, or decline it. Think about your subsequent step, and be prepared to continue in a manner that you can't alter your position.