Running your business in the fast-paced international environment nowadays requires making important decisions on your collaborations with external stakeholders towards achieving the intended outcome.
The longer the supply chain, the more complex it becomes. When you find yourself in the one end of an international transaction and your products or services are to be found in the other corner of the world, many stages and obligations in between demand your attention. Carefully-drafted cooperation agreements with external entities can assist you in successfully carrying out all your tasks.
Different types of cooperation
With an agency agreement, a principal (e.g. manufacturer, producer) agrees with a (commercial) agent that the latter concludes contracts on behalf of the former on the basis of a commission for this purpose and for a fixed or indefinite period. Under this kind of agreement, the agent does not act as subordinate, but rather works for the risk of the principal. The contract concluded by the agent remains a legally binding contract between the principal and the customer/buyer.
Collaboration may take the form of assignment of right and obligations. Under this legal concept, a party to an existing contract (assignor) agrees to transfer their rights and obligations deriving from that particular contract to a third party (assignee). In order to do so, the other party to the existing contract should be properly notified. On the other hand, no rights and obligations can be assigned to a third party when the contract explicitly prohibits assignment. The same is the case when the assignment materially alters the object and purpose of what is expected under the contract or violates the law and public interests.
Franchise agreements are another type of cooperation, which is particularly developed in the United States and to a lesser extent in Europe. Such agreements regulate the relationship between a franchisor and a franchisee in sharing a common brand. They are designed to protect the franchisor’s intellectual property and ensure compliance of franchisee’s operations under the brand standards. Franchise agreements may be particularly complex due to their long duration and the fact that they combine different fields of law. In addition, the franchisee should be flexible enough to accommodate the evolving needs of the brand, while the franchisor should consider the specific needs of the franchisee under their territorial coverage.
Apart from the ones above mentioned, many forms of cooperation can be agreed between businesses or between businesses and individuals: from simple oral arrangements to complex cooperation contracts. Despite aiming to cooperation, these contracts too include the compromise between the interests of the parties.
Alterlaw has extensive experience in negotiating different kinds of contracts by always prioritizing the promotion of its client’s interests. Having thorough knowledge of the needs of a business within current international trade, our professionals can guide you through your legal contractual options tailored to your business’ characteristics, in order to get as benefited as possible from a cooperation agreement.