Our commercial property solicitors provide pragmatic and reliable advice on all aspects of collaboration agreements.
A collaboration agreement offers the opportunity for different parties to come together and work towards a shared goal.
Independent parties working together to share knowledge and expertise offers many advantages, however, there are also many risks if a collaboration agreement is not planned and structured carefully. Lack of detail and clarity can often result in costly and damaging disputes between parties. We strongly recommend seeking independent legal advice to ensure your interests are protected.
Our friendly and efficient team will work with you to identify the risks and potential issues and effectively structure the collaboration agreement to ensure all parties know where they stand.
A collaboration agreement sets out how the parties will work together, divide the profits and benefits, and each parties’ responsibilities and obligations. It also explains how a party terminates the agreement and what happens if a dispute arises. The main terms usually include:
- Details of the project including the contributions such as land or finance
- The collaboration period and schedule
- Project management
- Intellectual property rights
- Data protection
- Dispute resolution process
- Termination arrangements
A properly drafted agreement will minimise risks as well as protect each party’s existing assets whilst facilitating the commercial property project.
The tax issues arising from a collaboration agreement can be complicated and often involve consideration of capital gains tax, corporation tax, personal tax, and stamp duty. We consider the commercial aspects and ensure the contract and documents protect you and your business. It is important that you seek your accountants advice on any tax consequences early on in the transaction so provisions to protect your tax position can be drafted into the agreement.
Our highly skilled team can advise, draft, or review your collaboration agreement to ensure it represents your best interests. We can also assist in using a Special Purpose Vehicle (SPV) with shareholders agreement.
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