# Business Plan > the business plan for the Company in the agreed form; **Term:** Business Plan **Last updated:** 2026-07-29 ## Definition ## What Business Plan Means in a Contract A Business Plan, as a defined term in a contract, refers to a specific document that describes a company's intended strategy, financial forecasts, and operational goals over a stated period. Rather than being a vague reference to general planning, the term is usually tied to a particular version of the document, often described as being in an agreed form and annexed as a schedule or exhibit to the agreement. This precision matters because the plan frequently underpins obligations elsewhere in the contract. The purpose of defining Business Plan this way is to give both parties certainty about what document governs expectations. Without a fixed reference point, disputes could arise over whether a party is complying with the version of the plan originally negotiated or a later, unapproved revision. By anchoring the definition to an agreed form, the contract ensures that any changes require mutual consent, protecting the integrity of the commercial bargain. ## How Business Plan Is Defined or Measured Most contracts do not attempt to prescribe every detail of what a Business Plan must contain. Instead, the definition typically points to the document itself as agreed between the parties, sometimes supplemented by a schedule listing minimum required contents such as revenue targets, cost projections, staffing plans, or key performance indicators. The measurement of compliance with the plan is usually addressed separately, often through covenants requiring the company to operate in a manner consistent with it or to report deviations. Some agreements build in mechanisms for updating the Business Plan periodically, such as annually or upon a material change in circumstances, with the updated version needing approval from a board, investor, or counterparty before it replaces the original. This creates a living framework rather than a static one, though the underlying principle remains the same: only the currently agreed version has contractual effect. - Reference to a specific date or version number of the plan - Requirement for board or shareholder approval before amendment - Attachment as a schedule to the main agreement - Provisions for periodic review and resubmission ## Where Business Plan Appears in Agreements The term appears most commonly in shareholders' agreements, investment agreements, and joint venture agreements, where investors want assurance that the company will pursue an agreed strategy and use funds as projected. It is also common in loan agreements and facility agreements, where lenders may require the plan to be delivered as a condition precedent or updated annually as an ongoing covenant, similar in function to a