A collaboration agreement is a contract between two or more parties working together on a mutually beneficial endeavor that defines the terms of their agreement. This agreement is vital to outline the agreed-upon terms of persons or companies working together for a project or a specific time and keep business relationships smooth. Provide the key details on parties, dates, payments, and projects in this customizable template and get a complete agreement in minutes.
Create & DownloadPlanning to collaborate with another company, organization, or individual? Begin by compiling a written collaboration agreement. Collaboration involves two or more individuals or entities jointly undertaking an activity to achieve a mutually beneficial objective. A legally binding collaboration agreement outlines the scope of cooperation and the rights and responsibilities of each party. With the signed document, parties go into the cooperation arrangement with clarity and peace of mind, knowing that they have sufficient legal protection. A customizable collaboration agreement template will allow the parties to include details about how they intend to distribute the benefit of their joint project and the mechanisms available for dispute resolution. The parties can also use the template to provide circumstances and procedures for termination of the agreement.
A collaboration agreement is a legal document that outlines the dynamics of cooperation between two or more entities. For example, a virtual office service company collaborates with a web design agency on web-related services. Prior to the collaboration, the virtual office business could only provide business address, mail handling, call answering, and secretarial services.
The collaboration gives the company a more comprehensive suite of services, including website design and hosting. The expanded service offering immediately increases revenue and eventually increases client retention. Likewise, by accessing the virtual office client pool, the web agency also enjoys increased revenue without additional spending on marketing. The two businesses entered into a collaboration agreement specifying each party’s roles and responsibilities, the joint efforts they’ll pursue, and how they’ll share the benefits.
Parties to a collaboration agreement are the businesses, organizations, government agencies, academic institutions, healthcare providers, community groups, trade associations, or individuals that agree to jointly pursue a common objective. The entities negotiate the terms within the context of not just their unique advantage, expertise, and industry regulations but also unforeseen circumstances that are likely to hinder the fulfillment of their contractual obligations.
With the rise of lean business models, signatories may not have in-house legal capacity to write out the terms of a contract. In such cases, they may find it useful to use a collaboration agreement template that can help speed up the contracting process, access the language necessary for an enforceable contract, and reduce time wasted revising clauses. By relying on a collaboration agreement template, the parties can enjoy open and transparent cooperation, knowing that the document complies with relevant laws, covers the parties’ interests, and fosters a mutually beneficial relationship.
Collaboration agreements sometimes contain complex legal jargon that needs to be interpreted within the context of the association. Some of the most common terms include:
A collaboration agreement should be concise and specific to its purpose. When entities attempt to revise service contracts to fit a collaborative context, the altered agreements may not adequately address some aspects unique to a cooperative venture. Failure to use a specific collaboration agreement can expose the parties to financial losses and legal liabilities.
A well-drafted agreement that meets the standards of a legally enforceable contract is important to use because it provides the following:
For a collaboration agreement to be legally binding, the law requires that it contain the following key provisions:
Scope listing the parties, their specific roles within the context of the activities for collaboration, timelines, outputs, and expected outcomes.
A framework for sharing benefits arising from the cooperation. The term of the collaboration agreement and mid-contract termination procedures.An intellectual property (IP) clause that indicates usage, licensing terms, and other details pertaining to IP management.
A confidentiality and non-disclosure clause that prevents the use or disclosure of trade secrets. The process and channels through which the collaboration agreement signatories can resolve disputes.A collaboration agreement is a co-creation between parties jointly pursuing a business purpose. The agreement is only relevant to businesses or individuals seeking to create contractual partnerships and retain their independence without creating any new entities. Therefore, it is important that the parties determine if their objectives warrant the use of a collaboration agreement template or another type of contract template. An experienced contract attorney may be able to help make this determination.
To write an agreement that reflects these aspirations, coordinate and develop a schedule for negotiating its important elements. Download an adaptable collaboration agreement template and use the following steps to customize it to suit your unique circumstances.
Having agreed to pursue a collaborative venture, create a discussion schedule during which all stakeholders will be available to meet and discuss the essential elements of the collaboration agreement. For transparency in making data-driven decisions, share the discussion program beforehand and request that each business present relevant company reports and paperwork supporting positions held.
During these meetings, encourage open dialogue, ask questions, and explore scenarios around “what happens when” situations. Make no assumptions. Leave nothing to chance. Take time to clarify any ambiguities and refer to a comprehensive collaboration agreement template for guidance on points of discussion, which may include:
