TL;DR: A SAFE (Simple Agreement for Future Equity) is a financing instrument, created by Y Combinator in 2013, that gives an investor the right to equity in the future when a triggering event occurs, typically a priced funding round, without setting a valuation today. It is not debt: no interest, no maturity date, no repayment […]
Category Archives: Contracts & Agreements
21
Nov
Nov
At a Glance Most business disputes do not begin because one party intended to act dishonestly. They usually begin because the contract failed to clearly define expectations, ownership, liability, timelines, payment obligations, or exit rights. A poorly drafted agreement can create uncertainty that becomes expensive once money, intellectual property, investors, or commercial relationships are involved. […]
16
Sep
Sep
TL;DR: A non-disclosure agreement (NDA) is a legally binding contract that obligates one or more parties to keep specified information secret. It is the standard first document signed before sharing anything sensitive, business plans, source code, financials, customer data, trade secrets, or strategic roadmaps. There are three main structures: unilateral (one party discloses), mutual (both […]
13
Sep
Sep
TL;DR: A prenuptial agreement is a contract signed before marriage that sets out how assets, debts, and spousal support will be handled if the marriage ends. It is fully enforceable in countries like the US, UK, Australia, and most of Europe when properly drafted, but its legal status is genuinely uncertain in India, where it […]
12
Sep
Sep
TL;DR: A franchise agreement is a contract in which a franchisor grants a franchisee the right to operate a business under the franchisor’s brand, trademarks, and system, in exchange for fees and royalties. In India there is no dedicated franchise law and no mandatory pre-sale disclosure, so the agreement itself carries all the weight: it […]
06
Sep
Sep
TL;DR: A software licensing agreement gives someone permission to use software without transferring ownership of it. The owner keeps the copyright; the licensee gets defined rights to use it, within limits. The biggest and most expensive confusion is between three different things that get treated as interchangeable: a software licence (permission to use), SaaS (access […]
23
Jun
Jun
TL;DR: Repudiation of contract happens when one party indicates, by words or conduct, that it will not perform its obligations. The innocent party faces a critical choice, called an election: accept the repudiation and terminate (and claim damages), or affirm the contract and keep it alive (riskier, as losses can grow and the right to […]
25
Jul
Jul
TL;DR: A lease agreement is a legal contract that lets a tenant use a property for a fixed period in exchange for rent. The core idea is the same worldwide, but the rules that decide whether your lease actually protects you differ sharply by country: registration in India, deposit protection in the UK, state-by-state rules […]
19
Mar
Mar
TL;DR: Redlining is the process of marking up proposed changes to a contract during negotiation, originally done with red ink and now done through track changes or document comparison tools. The real risk in redlining is rarely the editing itself. It is mismanaged versions, unreviewed accepted changes, and hidden edits that one party makes without […]
25
Feb
Feb
TL;DR: A Master Service Agreement (MSA) is the reusable legal framework that governs an ongoing relationship between two parties, covering liability, IP, confidentiality, payment, and termination once, so that individual projects can move quickly through shorter Statements of Work. You need one whenever you expect repeat engagements with the same vendor or client, not based […]