Contract essentials for startups

Protection starts with the entity itself: the company type, equity distribution, and a shareholders' agreement defining powers, decision-making, and the exit path from the partnership.

With employees, IP and assignment provisions govern developers and consultants so your technical assets are not owned by others, alongside a confidentiality agreement.

In client contracts, ensure a clear definition of scope, commercial terms, and a change mechanism, and review the liability and indemnity clauses so they remain reasonable and balanced.

Finally, when raising investment, pay close attention to the liquidation waterfall and control clauses that may grant the investor substantial powers beyond what the equity otherwise deserves.