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What is the Partnership Agreement?

The Partnership Agreement is the agreement between companies and/or professionals who combine resources and knowledge to carry out a common project, sharing risks and revenues. With the partnership agreement, the parties remain independent and legally distinct, excluding any possibility of mutual control.

The partnership agreement has a duration equal to the period of time necessary for the success of the project. The contract is therefore concluded when the objective is reached or due to the impossibility of continuing. To calculate the duration, the parties work out a time estimate based on the resources available for the success of the project and, if they intend to continue in stages, they can set an initial deadline and foresee an automatic renewal.

The commercial partnership contract allows the parties to define the objectives to be achieved, to organize financial resources and personnel as well as to coordinate the design phases. It also allows you to regulate the use of a common brand and protect company secrets through confidentiality clauses.

When using a partnership agreement

The partnership agreement is used to regulate a collaboration between companies and/or professionals, including foreign ones. For example, two companies come together in a partnership by combining their skills to participate in a tender that explicitly requires two different know-hows. Or, when a carpenter promotes an architect to his clients who need design and the same architect uses the carpentry for the execution of his works.

The commercial collaboration contract can be used between-subjects belonging to the same commercial sector who, together, are more competitive. It can also be used between subjects from different sectors who combine their skills and resources to achieve a goal that alone they would not be able to achieve. For example, a company wants to sell its products in China and agrees with local companies to distribute them throughout the territory.

There are many advantages in creating a partnership, for example:

  • union of know-how and skills
  • sharing of risks and costs
  • greater flexibility with respect to the establishment of new companies.

Before drawing up a commercial collaboration contract, the partners often find themselves negotiating the fundamental points of the future cooperation (eg the estimated time for the realization of the project, the costs and the participation fees to the agreement). It may therefore be useful during negotiations to set the agreements reached in a letter of intent.

The partnership agreement should not be used if the subjects agree to create new companies (by joining in a new legal entity) or if they find themselves collaborating on a project commissioned by a third party. For example, when a graphic designer and a programmer collaborate to develop a website commissioned by a third party. In these cases, a work contract or a service provision contract can be used.

What does the model of collaboration agreement between companies contain?

Our business partnership agreement meets all legal requirements. The main clauses concern:

  • Purpose: the definition of the objectives of the partnership between companies
  • Participation fees: the breakdown of the participation percentages of the partners in the initiative must be indicated
  • Management Committee: the powers of the body to which the executive management of the initiative is delegated, the coordination of activities, the division and coordination of roles and the preparation of a business plan are governed
  • Duration and termination: the contract must have a duration functional to the implementation of the objectives, with the option of being renewed
  • Trademark:  to regulate the use of a common trademark
  • Confidentiality:  to protect the information exchanged
  • Exclusive: the option to prevent parties from entering into partnerships with competitors
  • Forum: you can choose the resolution of disputes that have to be devolved to the ordinary courts or to one or more international referees also.

At the end of the interview, we will guide you step by step through all the subsequent steps necessary for your document to be valid and effective.

Information you need

All parts data are required to complete the document. If you don’t know where to find this information we will help you during the guided interview.

The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.

Remember that our interview does not generate a simple facsimile of a partnership agreement. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.

Other names

  • Contractual Joint Venture Agreement
  • Joint Venture Agreement
  • Joint venture agreement
  • Temporary association between companies
  • Commercial collaboration agreement

Other useful templates and facsimiles

  • Letter of Intent: to define the current status of negotiation and regulate its continuation
  • Trademark Registration: to protect a trademark, logo or other distinctive sign at a national, European or international level
  • Patent Registration: to file and protect your invention for exclusive use on a national, European or international level
  • Confidentiality Agreement: to protect you when you need to share confidential information
  • Term Sheet for Investments: to determine the main points on which the future investment agreement will be based

The Partnership Agreement is the agreement between companies and/or professionals who combine resources and knowledge to carry out a common project, sharing risks and revenues. With the partnership agreement, the parties remain independent and legally distinct, excluding any possibility of mutual control.

The partnership agreement has a duration equal to the period of time necessary for the success of the project. The contract is therefore concluded when the objective is reached or due to the impossibility of continuing. To calculate the duration, the parties work out a time estimate based on the resources available for the success of the project and, if they intend to continue in stages, they can set an initial deadline and foresee an automatic renewal.

The commercial partnership contract allows the parties to define the objectives to be achieved, to organize financial resources and personnel as well as to coordinate the design phases. It also allows you to regulate the use of a common brand and protect company secrets through confidentiality clauses.

When using a partnership agreement

The partnership agreement is used to regulate a collaboration between companies and/or professionals, including foreign ones. For example, two companies come together in a partnership by combining their skills to participate in a tender that explicitly requires two different know-hows. Or, when a carpenter promotes an architect to his clients who need design and the same architect uses the carpentry for the execution of his works.

The commercial collaboration contract can be used between-subjects belonging to the same commercial sector who, together, are more competitive. It can also be used between subjects from different sectors who combine their skills and resources to achieve a goal that alone they would not be able to achieve. For example, a company wants to sell its products in China and agrees with local companies to distribute them throughout the territory.

There are many advantages in creating a partnership, for example:

  • union of know-how and skills
  • sharing of risks and costs
  • greater flexibility with respect to the establishment of new companies.

Before drawing up a commercial collaboration contract, the partners often find themselves negotiating the fundamental points of the future cooperation (eg the estimated time for the realization of the project, the costs, and the participation fees to the agreement). It may therefore be useful during negotiations to set the agreements reached in a letter of intent.

The partnership agreement should not be used if the subjects agree to create new companies (by joining in a new legal entity) or if they find themselves collaborating on a project commissioned by a third party. For example, when a graphic designer and a programmer collaborate to develop a website commissioned by a third party. In these cases, a work contract or a service provision contract can be used.

What does the model of a collaboration agreement between companies contain?

Our business partnership agreement meets all legal requirements. The main clauses concern:

  • Purpose: the definition of the objectives of the partnership between companies
  • Participation fees: the breakdown of the participation percentages of the partners in the initiative must be indicated
  • Management Committee: the powers of the body to which the executive management of the initiative is delegated, the coordination of activities, the division and coordination of roles and the preparation of a business plan are governed
  • Duration and termination: the contract must have a duration functional to the implementation of the objectives, with the option of being renewed
  • Trademark:  to regulate the use of a common trademark
  • Confidentiality:  to protect the information exchanged
  • Exclusive: the option to prevent parties from entering into partnerships with competitors
  • Forum: you can choose the resolution of disputes have to be devolved to the ordinary courts or to one or more international referees also.

At the end of the interview, we will guide you step by step through all the subsequent steps necessary for your document to be valid and effective.

Information you need

All parts data are required to complete the document. If you don’t know where to find this information we will help you during the guided interview.

The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.

Remember that our interview does not generate a simple facsimile of a partnership agreement. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.

Other names

  • Contractual Joint Venture Agreement
  • Joint Venture Agreement
  • Joint venture agreement
  • Temporary association between companies
  • Commercial collaboration agreement

Other useful templates and facsimiles

  • Letter of Intent: to define the current status of negotiation and regulate its continuation
  • Trademark Registration: to protect a trademark, logo or other distinctive sign at a national, European or international level
  • Patent Registration: to file and protect your invention for exclusive use on a national, European or international level
  • Confidentiality Agreement: to protect you when you need to share confidential information
  • Term Sheet for Investments: to determine the main points on which the future investment agreement will be based