The information on an investor contract includes terms such as the amount of investment, how the recipient plans to use the funds and what returns investors can expect, as AZCentral notes. The contract may also outline whether investors have any control within the company.
An investor contract contains the names and contact information of the entities and individuals entering into the contract, the date the contract goes into effect and the structure of the investments, as described by AZCentral. The structure of the investment includes the ownership shares in the company.
An investor contract should also outline what form the investment should be transferred in, such as a wire transfer, check or as tangible assets. The contract should clearly indicate when investors can expect a return on the investment, and the contract should establish guidelines as to whether the investment earns a return based on the success of the company or whether the investment earns a flat interest rate. Also, the contract should indicate what happens if the business fails or declares bankruptcy as well as if the investors have any voting or management rights in the business. Additionally, it should address whether investors have any rights to audit the books, as AZCentral advises.