In the event that the net profit generated by the product is greater than – per month, we agree to enter into a formal partnership in accordance with the spirit of this Agreement and to create a formal legal entity with its own bank account and accounting. After the first year, if we both agree to stop working on the project, we will simply consider the agreement terminated, cancel all the money due to us by the project and take the software systems offline (if any). Any money that is part of the project will be used to reimburse unpaid expenses and will then be distributed proportionately according to the amount owed to us by the project. First, this agreement is for small passive-income projects and, as such, is said from the outset of that intention. If you really want to raise capital from VC and create the next Airbnb or Github, you might be better served if you use something essential. This agreement will be irrevocable for a period of 12 months after the signing (the „first year“), during which we will attempt to terminate the first versions of the project, market it to customers and make a profit. In the meantime, we will consider whether the project is useful to both of us. Is this agreement on project cooperation, which is presented on – likely to be such a light agreement when it comes to real cash investments in a project? Sure, but the idea is that the risk can start small while you experiment and find out if the project is worth pursuing. The main objective of an agreement is to clearly define the rights and obligations of the parties. These are just some of the important terms you`ll see in a software development agreement. Writing these terms and their subsequent clauses requires clear and concise language to reduce the risk of misinterpretation.
By signing below, the persons listed confirm that they are fully entitled to represent the parties to this agreement and herethly conclude the cooperation agreement between projects. I think the two-person projects are ideal. As an individual, it is too likely that I will be distracted from the project or bored to carry it out. With a partner, there is an integrated responsibility and we can complement ourselves with our widest range of skills and skills. In the case of the small project for which I am currently using this agreement, I am working with a specialist in the product designer and the UX and I make everything else available. This clause indicates who owns the components of the delivery or the work product to be developed as part of the software development agreement. That is why it is in the interest of both parties to determine who owns the software that is created.