California Agriculture Education Record Book General Information: Business Agreements California Agriculture Education Record Book

What is a Business Agreement? Agreement: a written statement between two or more parties explaining the details of a business venture Party/Parties: people with whom you make a business agreement Anytime two or more parties agree to work together, a business agreement is needed The business agreement is a legal document.

Why are Business Agreements Necessary? A properly drafted business agreement reduces the chance of misunderstandings between you and the people with whom you do business. Holds each party accountable for what they agreed to give to the other party

Types of Business Agreements 1. Ownership (for enterprises that you own & manage) Placement (for enterprises in which you do not own anything, typically working for someone else --- paid or unpaid)

General Rules for Completing a Business Agreement: Must be typed or written in ink Must be completed BEFORE the enterprise begins The last step is to get signatures, in ink, from all parties involved If the conditions change during the duration of the agreement, then it should be terminated and a new agreement written