15 types of contracts and agreements, with templates

Most businesses run on the same fifteen or so contract types. This guide explains each one in plain language, tells you when to use it and links the matching fynk template. Further down you will find what a basic contract between two parties looks like, part by part, and the legal categories (express, implied, void, voidable and so on) that lawyers use to classify contracts.

Contract

A legally enforceable agreement between two or more parties. In most common law systems it needs an offer, acceptance, consideration (something of value exchanged), an intention to create legal relations, parties with capacity and a lawful purpose. Most contracts can be oral, but some must be in writing.

Types of contracts at a glance

The 15 most common types of business contracts

1. Employment contract

An employment contract sets out the relationship between an employer and an employee: the job, the pay, the working hours and how the relationship ends.

Use it when: you hire someone full-time or part-time as an employee rather than as a contractor.

The core clauses are job title and duties, compensation and termination of employment. In the US most employment is at-will (Montana is the exception), but a written contract still fixes pay, duties and any notice or severance terms. In the EU, Directive 2019/1152 requires employers to give new staff written information on the essential terms of the job, so a written contract is the norm there. Our guide on what must be in an employment contract lists the essentials.

Template: Employment contract template

2. Independent contractor agreement

An independent contractor agreement (also called a freelance agreement) governs work done by someone who is not your employee: what they deliver, by when, and for how much.

Use it when: you bring in a freelancer, consultant or agency for a defined project or a limited period.

Three clauses do most of the work: the scope of work, which stops unpaid extra tasks creeping in, the payment terms, and intellectual property ownership, which makes sure you own what you paid for. The label on the contract does not decide whether someone is a contractor. In the US, the IRS and many states look at how much control you have over the work, and California applies the stricter ABC test. Treating an employee as a contractor can lead to back taxes and penalties.

Template: Independent contractor agreement template

3. Letter of intent (LOI) and memorandum of understanding (MOU)

A letter of intent records the main terms two parties plan to agree before the full contract is drafted. A memorandum of understanding does the same job, usually for a cooperation or partnership rather than a single transaction. Both are mostly non-binding.

Use it when: you need to record a deal in principle, for example before an acquisition, a joint venture or a large supply contract, so both sides can start due diligence and drafting.

“Mostly” is the key word. Parties usually make the commercial terms non-binding with a non-binding nature clause, but make some clauses binding on purpose: confidentiality, exclusivity (no talks with other buyers for a set period) and governing law. Courts look at the wording and the parties’ conduct, so an LOI that reads like a contract can be treated as one. Say clearly which parts bind and which do not.

Templates: Letter of intent template and memorandum of understanding (MOU) template

Letter of Intent (LOI / commonpaper.com)

A Letter of Intent (LOI) is a short and usually non-binding document containing the main terms of an agreement before entering a definitive binding contract. LOI aligns the parties’ objectives before moving forward with a fully binding contract. It can be used in various situations such as business, real estate, education, and employment.

In business negotiations and partnerships, clear communication is essential. Our practical Letter of Intent (LOI) template helps you outline the key terms and mutual interests before moving forward with a binding agreement. This template is easy to customize, making it suitable for your specific projects and partnerships. With our LOI template, you can set clear expectations and facilitate a smooth negotiation process.

contract Use template

4. Partnership agreement

A partnership agreement sets out how two or more owners share a business: who contributed what, how profits and losses are split, how decisions are made and what happens when a partner leaves.

Use it when: you start a business with a co-owner, form a general partnership or set up a joint venture.

Without one, the law fills the gaps. In most US states that is the Revised Uniform Partnership Act, under which partners share profits equally regardless of what each put in. Most partners want something else, so write down the profit split, voting rules, a buy-out mechanism and a dispute resolution clause.

Template: Business partnership agreement template

5. Non-disclosure agreement (NDA)

An NDA is a contract in which one or both parties promise to keep certain information secret and to use it only for an agreed purpose.

Use it when: you are about to share trade secrets, product plans, customer data or financials with a potential partner, supplier, investor, contractor or job candidate.

The common variants are the one-way (unilateral) NDA, where only one side discloses, and the mutual NDA, where both do. A good NDA defines what counts as confidential, lists the usual exclusions from confidential information (information that is already public, for example), sets the duration of confidentiality and spells out the consequences of breach. See our guide on how to write an NDA for a checklist.

Templates: NDA template and mutual NDA template

Mutual Non-Disclosure Agreement (MNDA)

NDAs are essential in maintaining trust, particularly in business collaborations or negotiations, by clearly defining what must remain confidential and the penalties for any breach. In essence, an NDA serves as a safeguard, helping businesses protect their most valuable information while fostering secure, professional relationships.

In the world of business and innovation, your ideas are your most valuable asset. With our carefully designed Mutual Non-Disclosure Agreement (NDA) template, you can ensure that your confidential information, innovative ideas, and sensitive data remain protected from unauthorized access and unwanted disclosure.

Use template

6. Confidentiality agreement

Legally, a confidentiality agreement and an NDA are the same kind of contract, and the names are often used interchangeably. In practice “confidentiality agreement” tends to be used for broader or longer arrangements, such as M&A talks or investor due diligence, and often comes with extra terms like exclusivity or non-solicitation.

Use it when: confidentiality is part of a larger negotiation, or you need it combined with exclusivity during a deal.

Check three things: the scope of what is protected, the permitted disclosures (to advisers, or where the law requires it) and the remedies for a breach. Confidentiality duties often survive the end of the business relationship, so state how long they last.

Template: Confidentiality and exclusivity agreement (M&A) template

7. Publishing agreement

A publishing agreement sets out the deal between a creator (an author or songwriter, for example) and a publisher: which rights the publisher gets, how the work is exploited and what the creator is paid.

Use it when: you license or assign the rights in a book, article, song or other work to a publisher.

The central clauses are the grant of rights (which rights, which territories, for how long) and royalty payment. Creators should look for a reversion clause that returns the rights if the work goes out of print or is not exploited, and a termination for convenience clause if they want a way out.

Template: Publishing agreement template (songwriter)

8. Influencer agreement

An influencer agreement sets the terms between a brand and a content creator who promotes its products: what is posted, when, for what fee, and who may reuse the content.

Use it when: you pay or gift products to a creator for posts, videos or a longer brand ambassador role.

Cover the content requirements (formats, number of posts, hashtags, approval rights), the fee or commission, usage rights for the brand, and exclusivity if you do not want the creator promoting a competitor. Disclosure is not optional. In the US, the FTC’s Endorsement Guides require a clear disclosure whenever a creator has a material connection to the brand, and EU countries have similar advertising rules.

Template: Influencer agreement template

9. Operating agreement and management rules

Not every contract is with an outside party. An operating agreement sets out how an LLC is owned and run. Companies with several managing directors often also adopt management rules of procedure (sometimes called business management regulations) that say who decides what, which decisions need approval, and how reporting works.

Use it when: you form an LLC with more than one member, or a company has several directors who need clear decision rights.

Cover decision-making and voting, approval thresholds for large commitments, reporting duties and what happens if a key manager leaves suddenly. Formal decisions taken under these rules are often recorded as board minutes or written resolutions.

Template: LLC operating agreement template

10. Sales contract

A sales contract transfers ownership of goods from a seller to a buyer for a price. It sets out what is sold, the price and payment terms, delivery, and the warranties that come with the goods.

Use it when: you sell goods, whether a one-off sale or a larger order that needs more than an invoice.

Key clauses are the product description, billing and payment terms, delivery and risk of loss, warranties and limitation of liability. In the US, sales of goods are governed by Article 2 of the Uniform Commercial Code, which requires a signed writing for sales of goods for $500 or more. International sales between businesses may fall under the UN Convention on Contracts for the International Sale of Goods (CISG) unless the contract excludes it.

Template: Sale of goods contract template

Sales Contract (Goods)

A Sale of Goods Contract is a formal agreement between a buyer and seller, where the seller agrees to transfer goods in exchange for payment. It has the following sections: parties' responsibilities, product descriptions, delivery details, and payment terms. It can also cover issues like warranties, returns, and breach of contract to make the process smoother and more predictable.

Using our sale of goods contract template, you can easily draft a fully functional and binding agreement in just a few minutes. It’s comprehensive, easy to follow, and covers all essential points when it comes to buying and selling goods.

contract Use template

11. Purchase order (PO)

A purchase order is the buyer’s written order to a supplier, listing the items, quantities, prices, delivery date and payment terms.

Use it when: you buy goods or services from a supplier, especially under an existing framework or supply agreement.

A PO is usually the buyer’s offer. It becomes a binding contract once the supplier accepts it, either by confirming in writing or by delivering. Watch for a “battle of the forms”: if the supplier’s confirmation carries different terms, it may not be clear whose terms apply. For cross-border orders, state who pays customs duties and taxes, for example by naming an Incoterms rule.

Template: Purchase order template

12. Supply agreement

A supply agreement is a longer-term contract under which a supplier delivers goods to a buyer on a recurring basis, at agreed prices and quality.

Use it when: you need a steady flow of goods (raw materials, components, finished products) and want prices, volumes and quality fixed for a period.

Typical terms are forecasts and minimum volumes, delivery schedules, quality standards and inspection, price adjustment rules, and termination. Most include a force majeure clause, which excuses either party from performing while an event outside its control (a natural disaster, for example) prevents it. Read how the clause defines those events, because it decides who carries the risk. If you sell through resellers rather than supplying directly, a non-exclusive distribution agreement is the better fit, and goods stored by a third party need a warehousing agreement.

Templates: Offtake agreement for product supply and wholesale agreement

13. Service agreement

A service agreement sets out what a provider will do for a client, to what standard, when and for what fee.

Use it when: you outsource work such as IT support, software development, consulting, cleaning or marketing.

For ongoing relationships, many companies sign a master service agreement (MSA) once and then add a statement of work for each project, so the legal terms do not have to be renegotiated every time. Cover the scope of services, service levels, payment, confidentiality, liability caps and a clear dispute resolution process.

Templates: Master service agreement (MSA) for software and vendor service agreement

14. Loan agreement

A loan agreement records the terms on which a lender lends money to a borrower: the amount, the interest, the repayment schedule and what happens on default.

Use it when: you lend or borrow money, whether between a business and a bank, between companies, or from a founder to their own company.

The main variants are secured loans (backed by collateral) and unsecured loans, term loans (repaid on a schedule) and revolving credit, plus convertible loans that can turn into equity. Check whether the interest rate is fixed or variable: a variable rate tied to a benchmark can raise the borrower’s payments when rates go up. Also check the default and acceleration terms, which let the lender demand the full balance early.

Templates: Unsecured loan agreement, secured business loan agreement and convertible loan agreement

15. Investor agreement

An investor agreement sets the terms on which an investor puts money into a company, usually in exchange for shares or the right to receive shares later.

Use it when: you raise money from angels, venture capital funds or strategic investors.

Early-stage rounds often use a SAFE (simple agreement for future equity), a format Y Combinator introduced in 2013, before a priced round. A priced round usually starts with a term sheet and ends with a share purchase agreement and a shareholders’ agreement. Look at the valuation, liquidation preference, board seats, information rights and exit terms. Many include drag-along rights, which let a majority that agrees to sell the company require the minority to sell on the same terms. When investors later want to resell their shares, a registration rights agreement sets out how.

Templates: SAFE template and Series A term sheet

What a basic contract between two parties looks like

Whatever the type, most written contracts follow the same format. Here is a simple sample contract agreement between two parties, reduced to its skeleton:

SERVICE AGREEMENT                                    <- title: names the type

This Agreement is made on 1 March 2026 between       <- effective date
(1) ACME Ltd, 10 High Street, London ("Client"), and  <- parties: full legal names,
(2) Jane Smith, 5 Park Lane, Leeds ("Contractor").       addresses, short names

WHEREAS the Client wishes to engage the Contractor   <- recitals: background and
to redesign its website.                                purpose (not obligations)

1. Services. The Contractor will deliver the          <- terms: who does what,
   website described in Schedule 1 by 30 June 2026.      by when
2. Fees. The Client will pay EUR 12,000 in two        <- consideration: what each
   instalments, within 30 days of each invoice.          side gives in return
3. Term and termination. Either party may end this    <- how and when it ends
   Agreement with 30 days' written notice.
4. Confidentiality, liability, governing law.         <- standard protections
5. Entire agreement. This document replaces all       <- boilerplate
   earlier discussions.

Signed: ____________  ____________                    <- signatures: name, title,
        ACME Ltd      Jane Smith                         date for each party
        by John Doe, Director

For a step-by-step drafting process, see how to create an effective contract.

How contracts are classified in law

The fifteen types above are grouped by business purpose. Courts and textbooks use a second set of categories, based on how a contract works legally. Any contract fits into one category on each line.

By formation: express and implied

An express contract states its terms in words. An implied-in-fact contract is formed by conduct: you sit down in a restaurant and order, so you have agreed to pay. Courts can also impose an implied-in-law contract (a quasi-contract) to stop one party being unjustly enriched, even where nobody agreed to anything.

By enforceability: valid, void, voidable and unenforceable

A valid contract meets all the requirements. A void agreement was never a contract at all, for example because its purpose is illegal. A voidable contract binds until the party who was misled, pressured or lacked capacity decides to cancel it. An unenforceable contract exists, but a court will not enforce it, often because it lacks a required form. In most US states, the statute of frauds requires a signed writing for contracts for the sale of land, contracts that cannot be performed within one year, promises to pay someone else’s debt and sales of goods for $500 or more. Our guide on what makes a contract enforceable covers each requirement.

By obligation: unilateral and bilateral

In a bilateral contract, both sides make promises: you deliver, I pay. In a unilateral contract, only one side promises, and the other accepts by doing the act, not by promising to. Reward offers and many insurance policies work this way.

By performance: executed and executory

A contract is executory while obligations are still open, and executed once both sides have fully performed. The difference matters for termination, insolvency and accounting, because only executory contracts still carry obligations someone can fail to meet.

Two further categories you will meet: aleatory contracts, where performance depends on an uncertain event (insurance is the classic case), and adhesion contracts, the standard “take it or leave it” terms of consumer services.

Managing many contract types in one place

Fifteen contract types usually means fifteen templates, many counterparties and many renewal dates. fynk keeps them together: legal turns approved contracts into templates with dynamic fields for names, dates and prices, contracts can be sorted and filtered by document type, and the contract calendar shows every notice period and renewal date in one view.

Related reading:

• Difference between a contract and an agreement
• What makes a contract enforceable?
• Unilateral contracts explained
• Breach of contract: consequences and prevention

Frequently asked questions

• What are the main types of contracts?

  By business purpose, the most common are employment contracts, independent contractor agreements, letters of intent and MOUs, partnership agreements, NDAs, sales contracts, purchase orders, supply agreements, service agreements, loan agreements and investor agreements. By legal category, contracts are express or implied, valid, void, voidable or unenforceable, unilateral or bilateral, and executed or executory.

• What is a contract agreement?

  “Contract agreement” is an everyday way of saying contract: an agreement between two or more parties that the law will enforce. Strictly, every contract is an agreement, but not every agreement is a contract. An agreement becomes a contract when it has an offer, acceptance, consideration, an intention to be legally bound, parties with capacity and a lawful purpose.

• What should a simple contract between two parties include?

  The full legal names and addresses of both parties, the date, a short statement of purpose, each party's obligations, the price and payment terms, the duration and how either side can end it, governing law, and the signatures of both parties with names, titles and dates. Templates help you avoid leaving one of these out.

• What are the essential elements of a valid contract?

  In common law systems: offer, acceptance, consideration, intention to create legal relations, capacity of the parties and a lawful purpose. The terms also need to be certain enough for a court to enforce. Some contracts, such as sales of land, must also be in writing.

• Does a contract have to be in writing?

  Usually not. Oral contracts are binding in most cases, but they are hard to prove. Some contracts must be in writing to be enforceable: in most US states the statute of frauds covers sales of land, contracts that cannot be performed within a year, guarantees of someone else's debt and sales of goods for $500 or more.

• What is the difference between void and voidable contracts?

  A void contract never had legal effect, for example an agreement to do something illegal. A voidable contract is valid and binding until the wronged party chooses to cancel it, for example because they were misled or pressured into signing. If they do not cancel it, it stays in force.

• Is an MOU or a letter of intent legally binding?

  Usually not in its commercial terms, but often yes in specific clauses such as confidentiality, exclusivity and governing law. Whether an MOU or LOI binds depends on its wording and how the parties behaved, so state clearly which parts are binding and which are not.

• What is the difference between an NDA and a confidentiality agreement?

  Legally there is none: both are contracts that oblige a party to keep information confidential. The names are used interchangeably. “Confidentiality agreement” is more common for broader arrangements, such as M&A talks, where confidentiality comes with exclusivity or other terms.

• Where can I find contract examples and templates?

  Each contract type in this guide links to a free fynk template you can open and adapt, including employment contracts, NDAs, letters of intent, MOUs, sales contracts, purchase orders, service agreements, loan agreements and SAFEs. Have a lawyer review anything high-value or unusual before you sign.

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