An introduction to 15 general types of contracts and contracts commonly used in business settings.

A letter of intent (or LOI) is a document that declares one party’s preliminary commitment to agree to do business with another. The letter outlines the terms of the agreement, such as key points that need to be negotiated and steps both parties agree to take before, during, and after the transaction.

A consulting agreement is a formal contract agreement created when a client requests services from a consultant. Consultants are considered a type of independent contractor, and so consulting agreements are a type of independent contractor agreement. 

Annual Contract Value and Total Contract Value each provide different information on the true value of a businesses’ contracts with their customers.

A confidentiality agreement is a legal document that regulates the way its signers must treat any private information specified therein. Confidentiality agreements exist to make sure that information isn’t shared outside of the relationship by defining what the information is, specifying how it may and may not be used and shared, and clarifying what will happen if it is shared inappropriately.

Licensing agreements are legal contracts in which a property owner (the licensor) gives another party (the licensee) permission to use IP owned by the licensor, such as their brand name, trademark, patented technology, or ability to produce and sell goods.