The key contracts and agreements for small businesses as mentioned in the article include:
1. Letter of Intent (LOI): A letter of intent is a tool used to signal commitment to do a deal without actually agreeing to a deal. It is helpful in situations where an entrepreneur wants to sell a part of their business to another company, as it soft commits the buyer to purchase contingent on the successful completion of due diligence.
2. Master Services Agreement (MSA): An MSA is a contract that outlines the overall scope of a business relationship between a company and its client. It covers details such as the services to be provided, pricing, timeline, and acceptance criteria.
3. Statement of Work (SOW): A statement of work is typically used in conjunction with an MSA. It is a legal contract that specifies the details of a particular project or engagement, including deliverables, pricing, timeline, and acceptance criteria.
4. Invoice: An invoice is a formal written demand for payment. It includes an itemized list of goods or services purchased, prices, and total amount due. Invoices are issued to customers for payment.
5. Receipt: A receipt is a written record given to a customer as proof of payment. It includes details of the transaction, such as what was purchased and how the payment was made. Receipts are commonly used for instant or non-invoiced transactions and are often required for expense reimbursement.
It is important to note that this information does not constitute legal advice, and businesses should consult with their own lawyers for guidance specific to their situation.