Founders Agreement: Pre-incorporation Startup Agreement (Extensive)

A Founders’ Agreement is a contract that a company’s founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder. Generally speaking, it regulates matters that may not be covered by the company’s operating agreement.

Ultimately, Founders’ Agreements are designed to protect each founder’s interests and memorialize that all founders are in agreement about the venture’s basic structure and how the founders will work together to move their business forward. Forging an agreement between all founders helps mitigate the risk of a lawsuit over who owns the business. There is a wide range of provisions that could be addressed in a Founders’ Agreement.

The template below includes provisions about:

*Transfer of ownership;

*Ownership structure;

*Confidentiality;

*Decision-making and dispute resolution;

*Representations and warranties; and

*Choice of legal authority... and more!

Website Terms & Conditions of Use

A Terms and Conditions of Use Agreement is a set of regulations which users must agree to follow in order to use a service. Terms of Use is often named Terms of Service, Terms and Conditions, or Disclaimer when addressing website usage. This agreement sets the rules that users must agree to in order to use your website.

For any online business which sells goods or services, a strong Terms and Conditions (T&C) agreement is just as important as choosing your site theme. However, T&C documents are often met with confusion by both businesses and consumers alike. Knowing what to include and how to approach writing them can be an intimidating prospect.

Memorandum of Incorporation

The Memorandum of Incorporation, or MOI, sets out the rules governing the conduct of the company, as specified by its owners. The Companies Act imposes certain specific requirements on the content of a Memorandum of Incorporation, as necessary to protect the interests of shareholders in the company, and provides for a number of default company rules / alterable provisions, which companies may accept or alter as they wish as long as it is in line with the Companies Act. Make sure to read through these provisions as they will help you understand the manner in which your business should be operating.

Independent Contractor Agreement (Extensive)

Also known as a consultant or freelancer, an independent contractor is a business or individual that is typically self-employed and provides a product or service for a customer in exchange for monetary compensation. This contract will stipulate the services needing rendering, the time requirements around them, and the compensation expected in exchange.

This Independent Contractor Agreement is a written contract that spells out the terms of the working arrangement between a contractor and client, including:

This should not be used as a mechanism to avoid providing de facto employees with rights which they are deserved of under law. Because this mechanism has been abused within South Africa, regulatory authorities are very strict about protecting the employee. Here is a general differentiation:

Independent Contractor

Employee

Independent Contractor Agreement (Concise)

Also known as a consultant or freelancer, an independent contractor is a business or individual that is typically self-employed and provides a product or service for a customer in exchange for monetary compensation. This contract will stipulate the services needing rendering, the time requirements around them, and the compensation expected in exchange.

Partnership Agreement

A Partnership Agreement is an agreement between you and your partner(s) that sets out the duties and obligations of the partners to each other and to the partnership. It establishes the rights and responsibilities of general partners, and the rules of a for-profit partnership. As a general rule of thumbs, once operations are more established, a shareholder agreement will better dictate the terms of the relationship going forward.