When two companies agree to work together on a project or business venture, it is important to have a written agreement in place. This agreement serves as a legal document that outlines the terms and conditions of the partnership, and helps to ensure that both parties are on the same page when it comes to expectations and responsibilities.
Below, we will take a look at an example of an agreement between two companies, and discuss some of the key components that should be included in any such agreement.
Example of an Agreement Between Two Companies:
This Agreement („Agreement”) is made and entered into on [Date] by and between [Company A], a [State] corporation with its principal place of business at [Address] („Company A”), and [Company B], a [State] corporation with its principal place of business at [Address] („Company B”).
RECITALS:
WHEREAS, Company A and Company B desire to enter into a business relationship to [Purpose of the Partnership].
WHEREAS, the parties desire to set forth the terms and conditions of their business relationship in this Agreement.
AGREEMENT:
1. Term and Termination: The term of this Agreement shall commence on [Date], and shall continue until terminated by either party upon [Notice Period] days` written notice.
2. Scope of Work: Company A and Company B agree to work together to [Purpose of Partnership]. The scope of work shall be outlined in a separate document attached hereto as Exhibit A.
3. Compensation: Company B agrees to pay Company A [Payment Structure]. Company A shall invoice Company B at the completion of each milestone, and payment shall be due upon receipt of the invoice.
4. Confidentiality: Company A and Company B agree to keep confidential all information relating to each other`s business, including financial and proprietary information, and shall not disclose such information to any third party without the prior written consent of the other party.
5. Representation and Warranties: Each party represents and warrants that it has the full power and authority to enter into and perform this Agreement, and that its performance hereunder will not violate any law or breach any agreement to which it is a party.
6. Indemnification: Each party shall indemnify and hold harmless the other party and its officers, directors, employees, and agents from any and all claims, damages, liabilities, costs, and expenses arising out of any breach by such party of any representation, warranty, covenant, or agreement contained herein.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
8. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties with respect to the subject matter hereof.
In witness whereof, the parties have executed this Agreement as of the date first above written.
[Company A]
By: [Name]
Title: [Title]
[Company B]
By: [Name]
Title: [Title]
Key Components of an Agreement Between Two Companies:
The above example includes several key components that should be included in any agreement between two companies:
– Recitals: These introductory statements provide context for the agreement and explain why the parties are entering into the partnership.
– Agreement: This section outlines the specific terms and conditions of the partnership, such as the term of the agreement, the scope of work, compensation, confidentiality, representation and warranties, and indemnification.
– Governing Law: This section specifies which state`s laws will govern the agreement.
– Entire Agreement: This provision states that the agreement represents the entire understanding between the parties and supersedes any prior agreements or negotiations.
In conclusion, having a written agreement in place between two companies is crucial to ensuring a successful partnership. By including the key components outlined above, the parties can ensure that everyone is on the same page and that the partnership is set up for success. As always, it is recommended to have any legal document reviewed by a qualified attorney.