A business contract is a legally binding agreement between two or more parties. The terms of a contract are legally enforceable and may involve a duty to perform or refrain from certain actions. When there is a failure on the part of any party to a contract to perform their obligations as stipulated by the terms o f the contract, the result is a breach of contract. The law provides certain remedies in order to restore the person who has been wronged to the position they would be in had the breach of contract not occurred.
A distribution agreement is a type of business contract between a manufacturer and a supplier to distribute or sell items which have been manufactured. For instance, a supplier might make a distribution agreement with separate stores selling a product that details how the goods will be sold or how many supplies will be available to the store. The terms of a distribution agreement might also include how an item will be advertised. A balanced distribution agreement generates money for both the manufacturer and the supplier. For example, a film director might sign a distribution agreement with a studio to market and sell films to theatres; such an agreement usually includes selling the films to video stores at a later date. Both the filmmakers and the distributors will make money from this arrangement. On the other hand, a farmer who enters into a distribution agreement with a supplier sets a price for his produce, the supplier then sells the produce to a supermarket for a higher amount and ultimately, the supermarket will charge the final consumers an even higher price. This is a three-tiered approach which ensures that all the parties make some money.
A partnership is a business alliance in which partners share with each other the profits or losses of a business. A written partnership agreement outlines the responsibilities of each partner and lists the important terms of the partnership contract. This agreement is referred to if there is any conflict between the partners at some time in the future. Some of the components of a partnership agreement include the allocation of profit and loss, the nature and purpose of the partnership, the extent of the authority of each partner, the process for the admission of new partners and what to do in the event of the death of any of the partners.
A joint venture occurs when two or more entities combine properties and expertise to carry out a business venture. These entities can be individuals, corporations or government. They usually have a joint proprietary interest in the business and a joint right to the control and share of the profits and losses.