The Most Common Types of Business Contracts and How to Choose

How contracts are classified

Contracts are grouped by subject (employment, sale, lease), by term (fixed or open-ended) and by form (paper or electronic). Whatever the type, a good contract names the parties, obligations, payment, term, termination and dispute resolution.

People and employment contracts

An employment contract governs the employer-employee relationship, a freelance contract suits independent workers, and a consulting agreement defines advisory scope and fees.

Commercial and business contracts

• Sales contract: transfer of goods for a price.
• Supply agreement: recurring delivery of goods on set quantities and schedules.
• Service agreement: a defined service with standards and deliverables.
• Construction contract: a project with specifications and timeline.
• Partnership agreement: shares, profits and responsibilities.
• Rental agreement: use of property or an asset for rent and a term.

Confidentiality contracts

A non-disclosure agreement (NDA) protects confidential information shared with partners, vendors or candidates, and sets the confidentiality period, exclusions and consequences.

How to pick the right contract

Ask two questions: what is the relationship, and which risks must be covered? Then start from a ready template and adapt it, or let the AI contract generator draft a first version for professional review.