An independent contractor is a person who has been hired for a business and is not an employee of the company. An independent contractual agreement does not necessarily require the document to be written down. It may be an oral contract and remains final. However, oral agreements can lead to misunderstandings. It is preferable to have a business agreement that defines the obligations of the independent contractor, the amount of compensation and how a dispute is resolved. A shareholders` pact (sometimes called the U.S. Shareholders` Pact) (SHA) is an agreement between shareholders or members of a company. In practice, it is analogous to a partnership agreement. It can be said that some legal systems do not properly define the concept of a shareholders` pact, regardless of the definition of the particular consequences of these agreements. There are advantages to the shareholder agreement; to be precise, it helps the company maintain the absence of advertising and maintain confidentiality. Nevertheless, some drawbacks should be taken into account, such as the limited effect on third parties (particularly assignees and stock buyers) and the change of agreed items may take time.
Oral agreements can sometimes create legally binding contracts, but only if there are the appropriate legal elements of offer, acceptance and consideration in the interaction. But there are a few that have to be written by law, which is known as the law of fraud. Contracts for the sale of real estate is an example, but more applicable to business requires a written contract if the terms of the contract take more than a year to carry out or sell goods worth more than $500. In most countries, registering a shareholder agreement is not necessary for it to be effective. Indeed, it is the greater perceived flexibility of contract law in relation to corporate law that provides much of the rationale for shareholder agreements. Oral agreements are based on the good faith of all parties and can be difficult to prove. Shareholder agreements vary considerably from country to country and industry to industry. However, in a typical joint venture or start-up, a shareholders` pact is normally expected to resolve the following situations: however, this flexibility can lead to conflicts between a shareholders` pact and a company`s constitutional documents. Although laws vary from country to country, most conflicts are generally resolved as follows: Although these are some of the most common legal agreements you might see in an economic context, they can cover an infinite number of topics, as long as the elements are in place and are not prohibited by law.