What is a Collaboration Agreement?
A collaboration agreement is when two entities or individuals merge together to become as one. One main reason for the merging is to work together for a project. This type of agreement is also used by both profit and non-profit organizations. A collaboration agreement is synonymous with a business agreement, marketing agreement, sales agreement, and an event agreement. Whatever the title is, both parties are obliged to keep their ends of the bargain that would both benefit them in the long run.
How to Create a Detailed Collaboration Agreement?
Creating a contract of any sort is hard. That's why people resort to the easy way by searching for contract templates online. There are various simple collaborative agreement templates available online. You just have to search for the template that will best suit your partnership. Most of these agreement templates are made in standard form.
1. Make Sure It's With the Right Partner
The very crucial step when it comes to collaboration agreements is choosing the right partner. Entrusting everything to a potential partner can be very risky considering that he/she can possibly jeopardize everything. Your interests and intellectual property are just some of the things you're putting in risk if you choose a partner carelessly especially when making copyright agreements.
2. Put It In Paper
Written agreements are more secure than verbal agreements. Verbal agreements increase the chances of lying so when you decide to get into an agreement with someone, don't rely on it. When you've had prior verbal agreements, you can put them all in a smart contract or agreement document that protects yourself and your business. If ever you'll be faced with litigation, you'll have the written agreement as your proof of your argument. This can also help you determine who breached the contract first.
3. Don't Complicatesample statements
Contracts don't have to contain jargon. Use sample statements that are easily understandable by both parties. A written contract that is too wordy might bore the reader so try to emphasize points by putting them in bullet form. Through this way, the reader will just sift through instead of reading the whole agreement.
4. Clarify the Parties Involved
This is vital information in the agreement as well. Clearly, stipulate the parties involved. Make sure to get both of your names right because erroneous information can make your agreement nonbinding. This is to also properly impose the respective party's roles in an agreement between two parties.
5. Stipulate All the Details
What does your collaboration agreement document entail? Stipulate them all here. You may also include the scope and limitations of the contract here such as the period of confidentiality. If you are the disclosing party, it's your responsibility to make sure that the receiving party does not find any loophole.
6. State the Penalties If the Agreement Is Breached
In case of failing to adhere to what is stipulated in the contract, there are certain consequences to be faced. Enlisting them here will prevent a possible breach of contract. Once you are done crafting your contract agreement, review, and double-check if all the pertinent information is included and explicitly stated.