Collaboration Agreement Practical Law

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It is very important to document what happens when more money is needed for the project, if a party does not pay, if it is forced to do so, and how and when each party can expect to recoup its investment. If a party violates its payment obligations under the Cooperation Agreement, the other party or parties may possibly apply to a court for damages for any loss suffered by the injuring party as a result of the injuring party`s non-payment. If a party uses many resources or makes a significant investment in the project, it may claim compensation for losses incurred by certain aspects of the project. Set-off is a contractual obligation that a party gives to another party to compensate that party for any loss suffered or likely to be suffered by that party, and any loss suffered may be recovered as a fault by the indemnified party. Payment terms could also include practical provisions on billing agreements; Termination provisions in a contractual joint venture are probably some of the most important contractual terms. Each party should think carefully about what happens if the project fails, stops, or fails, and what that means for them and their investment. . . .