Contracts are the backbone of business operations, but with so many different types, it’s important to understand which ones best fit your needs. This Docusign blog explores 15 common types of contracts and how they can be used to streamline operations, minimize risk, and ensure smooth business transactions.

From fixed-price agreements to licensing contracts, the post covers why different contract types exist and how understanding them can protect your business and boost efficiency. Dive into this guide for a comprehensive overview and practical insights on navigating the world of agreements.

✍️ Key Takeaways:

1. Fixed-price contracts: Simplify agreements with pre-determined costs.
2. Cost-plus contracts: Share risks by covering expenses and adding a fee.
3. Time and materials contracts: Pay for hours worked and materials used.
4. Unit pricing contracts: Break work into smaller units for clarity.
5. Unilateral contracts: One party promises payment only after actions are completed.
6. Bilateral contracts: Both parties commit to reciprocal obligations.
7. Simple contracts: Informal agreements, oral or written, with varying legality.
8. Implied contracts: Formed through actions rather than written terms.
9. Express contracts: Clearly defined and legally binding agreements.
10. Unconscionable contracts: Deemed unfair or exploitative by courts.
11. General business contracts: Includes NDAs, partnership agreements, and leases.
12. Bills of sale: Legal documents transferring ownership of goods.
13. Employment agreements: Define terms between employers and employees.
14. Licensing agreements: Grant usage rights in exchange for royalties.
15. Promissory notes: Formalize agreements to repay borrowed money.

💡 Why it matters: Understanding these contract types equips business owners to draft better agreements, negotiate with confidence, and avoid potential legal pitfalls.

📢 Community Chat: Share your insights and experiences in the comments below or ask your own questions. 

• Which of these 15 contract types do you use most often in your work?
• Have you ever encountered challenges with a particular type of contract?