Shipping, Development and Service Agreements – Part 6

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In our last RealDealDocs blog entry, we discussed triple net lease agreements, purchase and sale agreements, and outsourcing agreementsThis week, we will cover shipping agreements, development agreements, and consulting service 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.”


Shipping Agreement

A shipping agreement is used between a vendor or manufacturer of goods (”Shipper”), and a distributor (”Carrier”). The document contains the terms and conditions under which the transport of goods will occur. The contract will specify the scope of the agreement, the rates for shipping and how the rates will be invoiced.
There may be stipulations for interest on late payments, as well how any expenses will be handled. Documentation for the shipment, such as a bill of lading, may be required and the contract will specify its terms. The United States Department of Transportation has regulations regarding hazardous materials and the document may contain language stating the carrier will not receive said materials.
As a measure to protect their intellectual property, a vendor may include a confidentiality clause. Insurance information, claims and liability clauses are also often included in these contracts to protect both parties. Terms and conditions regarding the severing of the agreement will usually be present in the contract. The state of governing law and agreement to comply with all local, state and federal regulations are included in the document.

A technology company may use a shipping agreement when transporting product from a factory to vendors.


Development Agreement

A development agreement is a document used when an individual or company (”Developer”) is entering into a development project with an individual or company (”Company”) to create a new product. For example, this type of agreement might be used if one technology company agreed to provide development services for another technology company. Alternatively, a restaurant chain can also use this type of agreement when entering into a business relationship with a franchisee.

The agreement is meant to protect the intellectual property of the parties, and designates certain rights and responsibilities between the parties. A development agreement usually includes information regarding obligations, compensation and how costs shall be distributed. Stipulations regarding which party will provide materials and how said materials will be handled may also be included.
The agreement may include language for ownership of all prototypes, notebooks, reports and other related items for the development project. Insurance, indemnification clauses and rights to termination of the agreement are also typically included in a development agreement.


Consulting Service Agreements

Consulting service agreements are documents used when an individual or company hires an outside consultant for their expertise. Consultants work in multiple fields including the medical, engineering and human resources fields, and present expert opinions on the current conditions of their client’s business.

The contracts define the scope of the work the consultant will perform and will outline the terms of their payment. These agreements also cover the method of payment and the estimated time for the project. Consulting service agreements may contain clauses that outline terms and conditions regarding the consultation, and will make the parties aware of any repercussions that may arise due to breach of contract.

There are several varieties of consulting work, and a contract may contain language specific to a certain type. Contracts may include clauses regarding ownership of the work product, such as reports and case studies. Using a consulting services agreement helps a consultant see what the client expects.

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. There are numerous types of agreements available on