LEGAL DOCUMENTATION FOR E-COMMERCE STARTUPS

LEGAL DOCUMENTATION FOR E-COMMERCE STARTUPS

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LEGAL DOCUMENTATION FOR E-COMMERCE STARTUPS
LEGAL DOCUMENTATION FOR E-COMMERCE STARTUPS

LEGAL DOCUMENTATION FOR E-COMMERCE STARTUPS

If you are starting a new business, these following legal documents for e-commerce startups can make the difference between a successful venture and one that is headed for failure:-

  1. FOUNDERS AGREEMENT

A Founders’ Agreement outlines the roles and responsibilities of the founding members of a company, the equity vested in them, the ownership of intellectual property created by them etc. It is a broad agreement covering various aspects of the venture that the founders are about to undertake, including the consequences of their departure or death.

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  1. VENDOR/SELLERS AGREEMENT

A Vendor Agreement is an agreement stipulating the conditions under which the work is to be performed by the vendor. It is a comprehensive agreement covering various aspects such as the quality of goods supplied or service provided, duration of the contract, terms and mode of payment. Such an agreement would be useful to those hosting a large event (a trade exhibition, for example) where several vendors will be selling their wares.

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  1. NON DISCLOSURE AGREEMENT

A non-disclosure agreement (NDA) is a legal contract stating that certain information is confidential, and the extent to which its disclosure is restricted to third parties. It can be entered into with a person or organisation. Confidential information includes trade secrets, business plans, business methods and strategies, drawings, charts and more. Software programs and code are also confidential information.

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  1. WEBSITE TERMS & POLICIES

All online businesses need a terms of service agreement and privacy policy prominently displayed on their website. Most users ignore them and perhaps wonder whether they’re of any use at all, but all entrepreneurs know their importance. The terms of service agreement explains the conditions on which service is being delivered. Privacy Policy: Website Privacy Policy Agreement is a legal document which states that any information which is being gathered by any website will not be disclosed to the third party without any permission or legal action. According to the Information Technology Rule, 2011 in India there is a corporate body to provide a privacy policy for handling of or dealing in personal information, making the privacy policy a must-have for websites. Disclaimer: A disclaimer is a statement/notice informing the user of any product or service of the possible consequences of the same. The law mandates the display of a disclaimer in certain cases, such as where there is an inherent risk of harm to one’s health (the warnings displayed on cigarettes are a prime example), but are used commonly in all product and service literature. A disclaimer helps to clearly establish/limit one’s rights and liabilities with respect to the user of a particular product or service. It is used in situations which involve an element of risk or uncertainty.

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  1. NON-COMPETE AGREEMENT

A Non-Compete Agreement is a contract between two parties, where one party agrees not to compete with the other for a period of time. It lessens the possibility that knowledge gained by an employee or business partner will be used in the future to compete against them. In return, for not competing, the party is paid a fee. In most cases, the Non-Compete Agreement would prevent someone who signed it from competing directly, or from working for a competitor. This agreement outlines the duration of the agreement, any geographical limitations, and what subjects or markets it covers.

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  1. FRANCHISE AGREEMENT

It is a legal contract between a franchisor and a franchisee. The agreement’s content can vary depending upon the franchise’s system, the state jurisdiction of the franchisor, the franchisee, and the arbitrator. It provides the investor with a product, a branded name and recognition, and a support system.

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  1. MEMORANDUM OF UNDERSTANDING (MOU)

A Memorandum of Understanding (MoU) is a document in which two or more parties declare that they agree on a common course of action or business. It is the first stage of the making of a contract. An MoU is generally recognised as binding even though it creates no rights and obligations in itself. To be legally operative, an MoU must identify the contracting parties, spell out the subject matter of the agreement and its objectives, summarise the essential terms and must be signed by the contracting parties.

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  1. JOINT VENTURE AGREEMENT

A joint venture (JV) agreement is entered into by a group of persons or companies to do business together or to collaborate on a particular project without losing their individual legal identities. Such an agreement is legally binding and clearly lays down the areas of cooperation and divergence, and makes provisions for profit-sharing and operations. Usually, before entering into such a formal agreement, the parties sign a Memorandum of Understanding (MoU).

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  1. NON-SOLICITATION AGREEMENT

A Non-Solicitation Agreement is a contract whereby an employee agrees not to solicit a company’s clients or customers, for his or her own benefit or for the benefit of a competitor, after leaving the company. It can also include an agreement by the employee not to solicit other employees to leave when he or she quits or otherwise moves on.

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