The Contracts Every UK Startup Must Have Before You Raise or Sell

Every UK startup is built on contracts. Customers, suppliers, employees, co-founders, investors, freelancers: they all involve legal commitments that either protect you or leave you exposed.

This free live webinar with Michael Buckworth walks UK founders through the 8 essential contracts every scaling startup needs, why they matter, and what happens when they are missing or badly drafted.

Why contracts are the foundation of every scalable UK startup

Contracts are how businesses formalise commercial relationships. The startups that scale smoothly are the ones whose commercial contracts are signed, filed and understood. The startups that stumble are usually the ones that treated contracts as an afterthought.

In due diligence, investors and acquirers spend more time on contracts than on any other single area. A weak contract stack does not just create legal risk. It reduces valuation, delays deals and, in the worst cases, kills them.

The 8 essential contracts every UK startup needs

In our experience of hundreds of UK startups, the same 8 contracts appear in every successful scale: shareholders’ agreement, articles of association, founder service agreements, employment and consultancy contracts, customer terms and conditions, supplier and vendor contracts, IP assignments, and (occasionally) NDAs.

Missing any of these creates specific vulnerabilities. Michael walks through what each contract does, what a good version looks like, and how to spot problems in your existing contracts.

Frequently Asked Questions

Do I need custom customer terms and conditions?

For most UK startups, yes. Off-the-shelf terms rarely fit your specific product, liability profile and commercial model. Custom terms are also essential for enterprise customers.

What restrictive covenants can I include in UK employment contracts?

UK employment contracts commonly include non-compete, non-solicitation of customers, non-solicitation of employees, and confidentiality clauses. Enforceability depends on scope and reasonableness.

Do I need an IP assignment from every contractor?

Yes. Without an explicit written IP assignment, contractors and freelancers retain the copyright in what they create. This is one of the most common IP problems Buckworths sees in due diligence.

Should I sign an NDA with every prospective customer?

Not usually. Most enterprise procurement processes proceed without an NDA in the early stages. NDAs make sense when sharing genuinely confidential technical or commercial information.

What is a founder service agreement?

A founder service agreement is an employment contract between the company and each founder, covering compensation, vesting, restrictive covenants and IP assignment. Investors will always ask for signed founder service agreements in due diligence.

How often should I review my customer contracts?

Best practice is to review your standard customer terms annually and after significant business changes (new product, new pricing model, new market).

Are supplier contracts important for UK startups?

Yes. Supplier contracts govern your data, your service continuity and (increasingly) your regulatory exposure.

For help drafting or reviewing your startup’s core contracts, get in touch with the Buckworths team.

About the speaker

Michael Buckworth is a solicitor of the Supreme Court of England and Wales and one of the UK’s most experienced lawyers working with founders. Over 20+ years he has advised hundreds of UK start-ups and scale-ups on the legal decisions that shape their growth, from first incorporation through to exit.

He is the author of Built on Rock: The busy entrepreneur’s legal guide to start-up success, an Amazon Best Seller written for UK founders. Michael has served as “entrepreneur in residence” at London South Bank University and University College London, is a regular speaker at UK start-up and scale-up events, and has been quoted on start-up law in The Telegraph, The Daily Mail, The Independent and City AM.

About the host

Buckworths is the UK’s only law firm working exclusively with start-ups and scale-ups. From incorporation and SEIS/EIS advance assurance to seed and Series A rounds, EMI share option schemes, commercial contracts, employment law and successful exits, we support UK founders at every stage of the start-up and scale-up journey.

In the heart of London’s tech quarter, we work with UK founders across every sector, from AI and deep-tech to SaaS, consumer, healthtech and fintech. Book a free consultation with our start-up lawyers at buckworths.com.

Practical info

— Format: Free live webinar on Zoom for UK start-up and scale-up founders

— Duration: 60 minutes including live Q&A with Michael Buckworth

— Cost: Free

— Places: Limited to 100 UK founders. Register early to secure your seat.

— Attendees will receive a recording after the event.