The 4 most common business structures are:
- sole trader
A legally binding contract has three key requirements:
- Consideration – For example, payment of money in exchange for the delivery of a product.
- Intention – That is the intention to enter into a legally binding agreement. Which is presumed if you are offering to sell goods.
- Offer and Acceptance – It is offer and acceptance which is crucial to the formation of a contract for dropshippers. Ideally you do not want to conclude a contract until you are certain you can deliver on your promise. Which for dropshippers is dependent on your supplier.
However, what is important to note is:
- Assignment of copyright (including graphics and copy) must be formalised in writing and signed by the original owner, to be effective. If this is done then it is Australian law which dictates the copyright has been transferred, not the foreign jurisdiction.
- Having clauses in a service agreement requiring the service provider to deliver original work, which does not infringe another parties copyright, is also important. If some time down the track your business is presented with an infringement notice, such a contract goes to show the infringement was not flagrant. Flagrant infringement of copyright is generally subject to larger penalties.