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

2. 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.

3. 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

4. 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)

5. 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