FREE 26+ Sample Basic Agreement Forms in PDF | MS Word

Business organizations often hire the services of various contractors to ensure the efficient fulfillment of some of their crucial functions. These contractors may or may not be hired for a long term basis. However, whatever the duration of the service, the company should sign an agreement with the contractor. But, if the company is planning to hire the contractor for a long term, it is better to sign a basic agreement which lays down some ground rules that would apply for the whole time that the contractor offers his services. A basic agreement form is more than enough to give the company an idea of how such a document should be drafted, the format to be followed and the sections to be included in the agreement.

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What is a Basic Agreement?

A basic agreement is quite similar to the conventional agreements that are signed during various deals. However, unlike these agreements, the basic agreement is usually made between parties that intend to deal with each other on a long term basis. These contracts usually come in handy for organizations that hire the services of contractors. A basic agreement usually lays down certain terms and conditions that would hold true not just for one particular agreement but all the other agreements that the contractor signs with the organization. Thus, by signing a basic agreement, a contractor is obliged to follow certain ground rules that are put down by the company at the initiation of the service itself.

General Agreement between Two Parties

When two parties wish to get into an agreement for business purposes, it is always advisable to sign a proper document with the essential clauses and terms that would guard the interests of the parties involved. A general agreement between two parties would comprise of all the important information that is required.

• It should start by mentioning the names and details of the two parties.
• This should be followed by the role that the parties play in a deal. For example if the deal is about buying or selling a property, the roles should be defined as “buyer” and “seller”.
• Next, the purpose of the agreement should be written down stating why the agreement is being made in the first place.
• Following this should be the terms of the agreement which should also comprise of the date from which the agreement would be effective. It is advisable to put down these terms only after consultation with the parties as they should agree to all the clauses.
• The terms should also include what the parties are expected to do or not do during the term of the agreement. The financial aspects of the deal should also be carefully specified in the document.
• Once this is done, the general repercussions of the breach of the agreement should be listed down.
• The readied agreement should then be read by the two parties and once they are happy with the terms and conditions, they should sign it and get it attested.

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Basic Agreement Format

The format of the basic agreement is quite similar to the conventional agreement. The only difference comes with the terms and conditions sections where certain terms are laid down as the ground rule for the contractor who should follow these as long as he is working with the firm. Take a look at all the information that should be included in a basic agreement.

• Names and other important details of the two parties
• Date from which the agreement will be effective
• Financial details of the agreement
• Terms that would be considered valid for not just this agreement but for all the other agreements that are made with the contractor
• Repercussions in case of a breach of agreement

How to Write a Basic Agreement?

Writing a basic agreement is not really as hard as it sounds. All you need is the information and details of the company and the contractor between whom the agreement is being made. Before starting to write the contract, make sure to consult the two parties and find out what terms they would like to include in the agreement. Convey this to the other party and find out that they agree to these. An agreement should be drafted only when both the parties agree to all the terms that you intend to add to the agreement.

Here’s how you can write a basic agreement.

• Start with the agreement title. This should not be anything fancy but should clearly convey the purpose of the agreement.
• Below this introduce the parties along with their details.
• This should be followed by the details of the work that the contractor has been hired to offer and what the scope of this work is.
• Below this should be listed down all the important terms and clauses for the agreement. This should include the details of the overall payment to the contractor, if anything has been paid to him in advance, amount to be paid in case it is done in installments etc.
• The terms should also include the time allotted for the completion of the work and the action that would be taken in case of a delay.
•  Then should come the date from which the agreement would be effective.
• At the end, put down a section where both the parties can sign and for the seal to legalize the contract.

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What is a Basic Ordering Agreement?

When a company or buyer hires the services of the vendor to offer him certain products over a specific period of time, the two parties usually sign a basic ordering agreement. This agreement lays down certain clauses and terms that would be applicable to both the parties as long as they are associated with each other. It should be noted that this agreement is signed to ensure that irrespective of how many more contracts the parties sign with each other, the terms and clauses stated in this will remain valid.

A basic agreement comes in handy for organizations that work in tandem with contractors and vendors for extended periods of time. This agreement ensures that all the parties are well versed with their responsibilities, thereby guaranteeing no hindrance in the smooth functioning of the organization. Basis agreement forms can be used to draft such an agreement with ease and without expert help.