INVESTMENT CONTRACTS

Small business owners may use investment contracts if they have an interest in investing in other businesses or bringing outside investors into their business. When a person invests money as part of the investment contract, he or she expects to receive profits based on the efforts of a third party. In an investment contract, the basics describe the terms of the investment as well as how and when the investor should expect a return on the investment.

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Investment contracts are very complex financial instruments. As with any investment, they're not risk-free. They usually contain provisions limiting their ability to provide contract value pay outs in certain circumstances. When evaluating investment options, it's very important to fully understand possible risks and circumstances.

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Some of the investment contracts include Term Sheet, Shareholders’ Agreement, Share Purchase Agreement, Share Subscription Agreement, Share Transfer Agreement etc.