Sales, Equipment Lease and Proxy Agreements – Part 10

Agreement HandshakeIn our last RealDealDocs blog entry, we discussed lease termination agreements, restaurant lease agreements and manufacturing agreements. This week, we will cover three other types of agreements: sales agreements, equipment lease agreement and proxy agreements.

 

To review, an agreement can be defined as “a negotiated and usually legally enforceable understanding between two or more legally competent parties. Although a binding contract can (and often does) result from an agreement, an agreement typically documents the give-and-take of a negotiated settlement and a contract specifies the minimum acceptable standard of performance.”

 

Sales Agreement

 

A sales agreement may also be referred to as a sales contract, and is used when an individual or company (”Buyer”) purchases products or services from a seller (”Seller”). Such agreements usually include the purchase price, quantity of goods, plus delivery information, such as location and date of delivery. The term length of the purchase may be included in the agreement, if the purchase is not a one-time arrangement. If the contract concerns food and perishables, the contract may have quality requirements that must be met. Payment terms such as when payment is due, how payment shall be made, and the method of payment are typically included in these documents. For goods delivery, packaging types may be stipulated in the agreement as well as rights to inspection, plus who is responsible packing and delivery fees. A good faith deposit may be accepted prior to delivery, and if it exists, it will be mentioned in the document. Clauses regarding intellectual property, indemnification, warranties, taxes, and rights to termination may appear in the sales agreement.

 

Equipment Lease Agreement

 

If an individual or company (”Lessee”) is renting equipment from the equipment owner (”Lessor’), an equipment lease agreement will be used. The document will cover the equipment the lessee is leasing, the term length of the lease, and condition of the equipment when received. Repair conditions for the equipment may appear in the document as well. The agreement may contain terms regarding payment amount, a payment schedule, late charges if applicable, and a security deposit. The agreement will designate who is responsible for delivery of the equipment during the life of the lease agreement. If the lessee defaults on their obligations, the contract will contain the penalties. The lease will include details on what operators are permitted to use the equipment, as well as what is considered proper use, and the terms of severability of the contract. The parties shall agree under which state of governing law the document is signed. If either party requires notice regarding the lease, the agreement will specify how notice to the agreement shall be delivered. To protect their interests, the equipment agreement will contain clauses regarding taxes, waiver of a party’s right and indemnification.

 

Proxy Agreement

 

A proxy agreement is designed to allow an individual to act on behalf of another individual or company in a legal matter. This type of agreement is commonly used in a corporate stock voting session. The document gives the written authority for the proxy to serve in the individual’s interests and contains the terms of agreement. The document will specify the parties that are part of the agreement, plus the rights and responsibilities the proxy is able to undertake on behalf of the individual. The agreement may contain certain covenants of the agreement, and the terms under which the proxy is appointed. The proxy agreement will specify a beginning date and end date of the proxy appointment. The individual or company the proxy is acting on behalf of will specify certain rights and responsibilities of the proxy, as well as a right to information. Agreements will include exemptions and indemnification clauses to protect the parties. Further information in a proxy agreement might include liabilities, representations and warranties.

 

Drafting an agreement from scratch can be a time consuming and daunting task – plus, without input from a qualified attorney, you may be poised to enter into an arrangement this not legally sound or in your best interest. Fortunately, RealDealDocs allows you access to thousands of agreements that have already been used in a myriad of different industries.

 

 

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