A Collaboration Agreement is a binding contract between two or more companies for the completion of a particular project.
A Collaboration Agreement documents the terms and conditions of a project between two or more companies. Each company may be contributing intellectual property, resources, research, product development, or marketing expertise to the project.
Business collaboration is a way for small businesses to expand their client base and tap into new markets by partnering with other organisations to address skill or resource gaps, thereby allowing them to bid for a wider range of work or for larger projects.
For many small businesses, collaborations are a way to stay competitive in today's ever-changing business world. These collaborations allow small businesses to pursue markets, customers, or ventures they cannot reach by themselves. For larger businesses, collaboration with a small business can bring critical expertise or product, service, technology, or market access that is outside their core competencies.
A Collaboration Agreement governs the terms of the collaboration between the two companies, including issues such as project funding, treatment of confidential information, and how the agreement will be terminated.
When drafting a Collaboration Agreement, it is important to focus on a number of key clauses, in particular: