A Collaboration Agreement is a contract between two or more companies for the completion of a particular project.
A Collaboration Agreement documents the contribution of each party to the project, which may be intellectual property, resources, technology, product development, or marketing expertise.
Business collaboration allows small businesses to expand their client base and tap into new markets by partnering with other organisations to address skill or resource gaps, thereby enabling them to bid for a wider range of work or for larger projects.
For larger businesses, collaboration with other businesses 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 parties, including each party's obligations, project funding, treatment of confidential information, and how to terminate the collaboration.
When drafting a Collaboration Agreement, it is important to focus on a number of key clauses, in particular: