This article explains the different contract types. Contracts are written agreements that are legally binding. Agreements refer to contract types.
OfficeRnD has four default types of agreements:
Membership Agreement
License Agreement
Lease Agreement
Quote
To enable or disable any of those types or create a Custom Contract Type in your OfficeRnD organization, go to Settings > Platform Modules > Contracts.
Please do not disable or change contract types currently used by active contracts.
Although the contract types share most of the basic properties, a significant difference separates them: whether the contract specifies the details of the resource that will be licensed or subleased to the member. Nevertheless, all those properties are modifiable.
Membership Agreement
The Membership Agreement is more popular in the Coworking World and is a way to put a framework and structure around the relationship between you and your members. Usually, the membership agreement specifies the following details about the relationship:
Start of the contract.
The number of members/seats/memberships.
Type of memberships.
Applied discounts.
General T&Cs, including Termination & Break clauses, and so on.
The Membership Agreement should never specify the exact office or space provided. We suggest using language and terms that enable you to relocate members within the space without having to sign a new contract. This offers greater flexibility for upgrading, changing, and downgrading memberships without violating the contract's terms and conditions.
License Agreement
On the other hand, the License Agreement is more structured around the exact office that is provided to the customer. Originating from the Serviced Office industry in the United Kingdom, the License Agreement has more strict rules about its structure and the data it holds. The most important bit is that it explicitly states to the office that it is licensing. This means that if the member requires upgrading and changing offices, you will have to terminate the contract and issue a new one for the new office. It is important to note that the licensee is considered a Member of the Space.
Usually, the license agreement specifies the following details:
Period and length of the contract.
The name, location, and the number of offices.
Additional services.
Applied discounts.
General T&Cs, including Termination & Break clauses, and so on.
Lease Agreement
While the first two types of contracts place the member on the customer side of the contract, the Lease Agreement, also known as a Tenancy or Rental agreement, is usually signed between a Tenant and a Landlord. Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee.
It is important to note that the Lease agreement usually has more legal consequences.
Important: Please consult with a lawyer to ensure the contract's type and details and the terms and conditions in the contract meet the law requirements in your country or region.
Quote
Quote is a type of contract designed to work with one-off fees. As such, this type lacks things like "End Date" and "Notice Period" since it's supposed to be for a singular service/payment. For example, event space booking/rent.
Custom Contract Type
To create a custom contract type, go to Settings > Platform Modules > Contracts and click Add Contract Type.
When adding a custom contract, you can fill in the following fields:
Name - Enter the name of the contract type.
Type - A unique ID for the contract type that the system will use to handle contracts of that type. The field is automatically populated with the name you input in the previous field. The type can be changed manually if needed.
Description - Enter a short summary of the contract type and its use.
End Date Required - Choose whether the contract must have an end date or if it is optional.
Notice Period - Choose the default Notice Period of that type of contract.
Primary Items - Select the types of resources or plans that must be added to a contract before it can be signed. At least one item of the Primary items list must be selected when creating a contract, or it cannot be created.
Secondary Items - Select the types of resources that can be added to a contract of that type. These types of resources or plans are optional for the contract.
- - End Date Required, Notice Period and Secondary Items are initially hidden. They appear if something more than One-off plans is selected as Primary Item.Documents - Contracts of this type will have the selected documents appended to them by default. This can be adjusted for individual contracts when raising contracts of this type when creating or editing them.
Template - Select the default Contract Template for this contract type. This can be adjusted during contract creation as well.
Templates
OfficeRnD comes with a standard template for every major type of Agreement. Following are some important notes about the templates:
Customize - you can fully customize the default templates or have a look at Document and Template Customization to find out how we can help with this task.
Add New Template - you can easily add more templates if:
You need a template in different languages.
You have different templates for the different types of Services you provide.