NON-DISCLOSURE AGREEMENT (NDA)
The NDA is usually one of the first steps towards solidifying our business relationship with a potential partner/client.
Also known as a Confidentiality Agreement, it outlines what constitutes confidential information between the parties and protects any type of confidential information shared between the parties during the negotiations whether prior to or after the signing of the agreement. It is always preferred that requests for NDAs come in before conversations with the other party begin in the first place.
The typical NDA sometimes include Non-compete and Non-circumvention obligations along with the obligation for maintaining Confidentiality.
BUSINESS DEVELOPMENT AGREEMENT (BDA)
The BDA is the agreement usually drafted to establish Business development relationships between VGN entities and 3rd parties. The obligations usually require the other party to function as a business development consultant by leveraging its contacts and strategic relationships to secure business opportunities for the VGN entity involved in the Agreement.
The other party secures Clients for the VGN entity and maintains the relationship between the Client and the VGN entity after a substantive contract is secured by the VGN entity with the Client.
MEMORANDUM OF UNDERSTANDING (MOU)
The MOU is a document which outlines the intentions of any VGN entity and a 3rd Party. It communicates the mutual expectations of the parties as regards the relationship sought to be created between the parties.
It is usually used as a precursor to the execution of a binding agreement and as a result is not usually legally binding on the parties to it but a mere statement of their intentions. The non-binding nature of MOUs can be sidestepped through the inclusion of a “Bindingness Clause” in the agreement.
ENGAGEMENT LETTER
This is a written agreement in the form of a letter by which a business relationship (usually short-term) is established between a Service Provider intending to provide certain services to the VGN entity and the VGN entity.
The Engagement Letter sets out the expectations of both sides (the Client and the Service Provider) in the engagement including the scope of the engagement, the completion period for the service to be rendered, criteria to be met by the service provider and the costs associated with the engagement amongst other issues.
SERVICE AGREEMENT
This is a written agreement by which a business relationship (usually longer-term) is established between a Service Provider intending to provide certain services to the VGN entity and the VGN entity and vice versa where the VGN entity is the Service Provider to an external client.
It sets out the expectations of both sides (the Client and the Service Provider) from the service agreement including the scope of the service to be provided, the completion period for the service to be rendered, criteria to be met by the service provider, the obligations of both parties with respect to the service provision and the costs associated with the contract amongst other issues.
SERVICE LEVEL AGREEMENT (SLA)
SLAs are written agreements that establish the level/extent of service to be expected of a vendor providing certain services or products. It sets out the yardstick by which the Service Provider’s deliverables are to be measured and the response times, fines or penalties that would apply based on the set-out service-levels.
The key indices in SLAs are product performance measurement and evaluation vis-à-vis service quality as it relates to service delivery and product maintenance as well as the obligations of both parties to maintain the service quality
TERM SHEETS
Term Sheets relate majorly to investment arrangements. They are non-binding agreements that set out the basic terms and conditions upon which an investor would be making an investment in an investee company. It does not include lengthy clauses and is usually in the form of key points set forth in bullet points. It usually comes before the binding agreement between the parties negotiating the investment options.
THESE ARE A FEW AMONGST THE DIFFERENT TYPES OF AGREEMENTS PREPARED BY TECHNESTSOLICITORS FOR OUR CLIENTS.
