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Checklist of Important Points to Follow Regarding Contract Execution
| 1. | Discuss all employment terms in advance |
| 2. | Legal disputes often arise because many companies hire workers on a handshake; thus prepare an employment agreement with each employee to protect your company |
| 3. | Remember that your position is strongest before the hiring so include many favorable provisions in the confirmation letter or employment agreement |
| 4. | With written contracts you can insert restrictive covenants that are reasonable in terms of geographic scope and time limitations for additional protection |
| 5. | Consider arbitration to resolve employment disputes and add this clause to your employment agreements where applicable |
| 6. | When employment contracts are issued, be sure that all changes, strikeouts and erasures are initialed by a company officer and the employee |
| 7. | Be sure all blanks are filled in if your company uses a standard employment contract |
| 8. | If additions are necessary, include them in a space provided or attach them to the contract itself; then note on the contract that addenda have been accepted by both parties |
| 9. | Always review and respond in writing to any comments or proposed amendments to the contract you may have received from the potential employee so your lack of notice will not be viewed as an acceptance |
| 10. | Be sure your agreement is signed by the employee |
| 11. | Always avoid promises of lifetime employment or "jobs for life" for obvious reasons |
FAQs
- What does it mean that corporations have "perpetual existence"?
- Can shareholders of all corporations, large or small, transfer their shares?
- How are corporations taxed?
- What type of business organization is appropriate for my business?
- What are the disadvantages of partnerships?
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