Example of a Contract between Two Businesses

When it comes to conducting business with another company, it`s essential to have a written agreement in place to ensure both parties are on the same page. A contract outlines the terms and conditions of the agreement, including payment terms, deliverables, and deadlines. In this article, we`ll dive into an example of a contract between two businesses and discuss the key components that should be included.

Contract Overview

This Contract (“Agreement”) is made and entered into on [Date] (“Effective Date”) by and between [Company A] (“Company A”) located at [Address A] and [Company B] (“Company B”) located at [Address B]. This Agreement shall govern the relationship between the parties concerning [insert service or product being provided].

Scope of Work

The first section of the contract should lay out the scope of work being provided by Company A. This should be a detailed description of the service, product, or deliverables being provided, including any specifications, requirements, or deadlines.

Payment Terms

The next section should outline the payment terms for the agreement. This should include the total cost of the project, the payment schedule (e.g., upfront deposit, payment milestones, final payment), and any penalties for late payments or non-payment.

Intellectual Property

This section should address the ownership of any intellectual property created during the project. This may include copyright, trademarks, or patents. It should also specify how any pre-existing intellectual property will be handled.


If either party will have access to the other`s confidential information, such as trade secrets or client lists, it`s important to have a confidentiality clause in place. This section should outline the obligations of both parties to keep any confidential information confidential and the consequences of a breach.


The termination clause should outline the circumstances under which either party can terminate the agreement, as well as the notice required to do so. This may include failure to fulfill obligations, breach of contract, or force majeure events such as natural disasters.

Dispute Resolution

In the event of a dispute between the parties, the contract should outline the steps to be taken to resolve the issue. This may include mediation, arbitration, or litigation.

Governing Law

This section should specify the laws that govern the agreement and any disputes that may arise. This may be the law of the state in which one of the parties is located or a specific jurisdiction agreed upon by both parties.


A contract is a critical component of any business relationship, particularly when dealing with another company. By including the key components outlined above, both parties can have a clear understanding of the terms and conditions of the agreement. It`s always recommended to have a lawyer review any contract before signing to ensure it`s legally binding and protects your interests as a business owner.