Ever heard the saying “two heads are better than one”? If you look at our daily activities as humans🧬, it’s clearly true! That’s why we often collaborate with other people 👨👨👧👧. And when we do so in a business setting, we need a collab agreement to make things official.
A good collab agreement can help you avoid conflict and make for easy future performance. Want to know more about collab agreements, what they should contain, and where you can get one🤨? We got you😊!
What Is a Collab Agreement?
A collab agreement is a commercial agreement between parties (for example, you and a client). Once signed, it’s legally binding, and it can be used to work collaboratively on a business venture or commercial project. So if you are looking for a client or contractor for your latest joint venture, you need a collab agreement📜!
Collaboration agreements are used in all kinds of business scenarios. For example, on tech platforms like Amazon Web Services, developers collaborate to work on application development and real estate as a contract between realtors and builders.
Application developers that want to collaborate with engineering teams to work on application delivery or application performance on platforms like Amazon Web Services need this to protect the project from issues that may arise. However, collab agreements can also be used by influencers, freelancers, and other types of internet workers.
What Should a Collab Agreement Entail?
We already mentioned that a binding collaboration agreement details what is expected of each party while working on the project, but wait! There is more 🙂! A comprehensive collab agreement should contain a lot of details to work correctly.
This section will educate you on what your collab agreement 📑 needs to contain to be comprehensive. We know you can’t wait to find out, so we will get straight to it 😀! An adequate collaboration agreement should contain the following
Collab Agreement Part 1: Project Details
First, you need information about a) the project and b) the introduction of the project team. The project details may be added to the project as an attachment or specified in a section of the agreement.
It is very important to add the details of the project and specify what each party involved needs to do. This will eliminate❌any form of misunderstanding that may cause delays when the project kicks off.
Collab Agreement Part 2: Timeframe and Project Schedule
Your binding agreement 🤝 must include the period of time within which the collaboration will be active as well as a detailed project schedule. This gives everyone an idea of the agreement window and when each part of the project must be completed. The project schedule 📅 lets them know the timeline of key activities.
Collab Agreement Part 3: Management and Communication
The collab agreement should stipulate the management technique of the project as well as project arrangements. That way, workers will know how and to whom they will report the progress of their part of the project. This also fosters good communication between everyone working on the project, whether via email alerts, in person, or on the phone 📞.
Collab Agreement Part 4: Funding/Payment
Here’s where you explain how the project will be funded 💰. This section also contains how much everyone will get paid. It also may include a method of getting more funds for the project if necessary. It also needs to mention how the profits and losses realized from the project will be shared.
Here are some other questions that this section may include:
- Are there additional financial support services? How will they apply?
- Will you hire security services from fund security service agencies?
- Does the project have access to capital markets?
Collab Agreement Part 5: Intellectual Property, Confidentiality, Non-Solicitation, and Data Protection
The collaboration agreement has to state clearly whether this is a discrete project. It should also have a section or more dedicated to the protection of the intellectual property rights 🧠 of each party. Depending on the project itself, you might need to stress what project information is confidential.
If you’re working on a discrete project, be sure the collab agreement stipulates protection protocol for project data 💪. Furthermore, the agreement has to stipulate the parties’ stance on competition and solicitation to avoid any conflict that may arise from a party engaging in additional ventures while working on the project.
Collab Agreement Part 6: Liabilities
This section explains how the parties involved will handle the potential risks and liabilities that may occur during the project. It also covers how your business will handle liabilities caused directly by a party due to breach of terms. For example, if a client fails to pay on time, the collab agreement will explain what to do.
The agreement may also explain any liability protection from substantial risks available to each party while working on the project. Make sure to detail the risk factors 🤞 of the project here too. It’s clearly important that the parties involved have a knowledge of the risk factors if there are any.
Collab Agreement Part 7: Dispute and Termination
The last section of your collab agreement should detail how disputes will be resolved and what will be done if the parties involved decide to part ways and stop working together. This ensures that the project doesn’t end abruptly due to any dispute or disagreement 👎.
Get Help with Your Collab Agreement
Now that you have an idea of what a collaboration agreement is and how you can use one, you can go ahead and create yours 🙂! We have several templates, including our influencer agreement template and our independent contractor agreement, that you can purchase from us for a low fee.
Lawyers carefully drafted these agreements, which our team will customize just for you upon purchase. If you’re working with a client who doesn’t have a collab agreement, send them the link and ask them to purchase one for your project!
Should you have questions regarding this topic or need any help creating a custom collab agreement for your joint project, feel free to reach out to us😊! At Ian Corzine, our team of experts can help you get the highest level of legal protection for your brand. Reach out to us today to start building powerful business relationships 💪!