Business Cooperation Agreement

Business cooperation agreement – a professional template in Word format

A business cooperation agreement is concluded between two companies or sole traders who work together on a lasting basis – they refer clients to each other, appear jointly before a customer, provide each other with services from their own line of business or promote products together. Unlike a one-off job, here you are not ordering one specific result but regulating an ongoing relationship, so the agreement has to state clearly who does what, who pays whom and how the cooperation is brought to an end.

A business cooperation agreement is not a nominate contract with its own chapter in the legislation – it is concluded on the basis of freedom of contract and the general rules of the Obligations Act (Zakon o obveznim odnosima) apply to it. Precisely for that reason the content of the agreement is entirely up to the parties, and a poorly drafted agreement carries a greater risk here than with nominate contracts, where the legislation fills in the gaps.

Key features

• Professional template – 10 articles covering the subject of the cooperation, the obligations of both parties, remuneration, confidentiality, independence, duration and liability for damage.
• Practical reliability – three ready-made remuneration options (fixed amount, percentage of joint revenue, cooperation without remuneration), so the agreement covers almost every arrangement found in practice.
• Easy customisation – the obligations of each party are entered as a list, so you adapt the agreement to your line of business without rearranging the whole text.
• Digital availability – the DOCX file with instructions arrives by e-mail immediately after purchase, ready to be filled in and signed.

What the template includes

• Details of both parties – name of the company or sole trader, registered office, OIB (personal identification number) and the person representing it, with their position
• The subject of the cooperation and the territory in which it takes place (country, region, city)
• Separate articles setting out the obligations of the First and the Second party, in the form of a list you fill in with your own items
• An article on remuneration with three options – a fixed amount per job or per month, a percentage split of revenue, or cooperation without monetary remuneration against mutual services
• Deadlines and the manner in which individual jobs are performed, with a rule that arrangements are confirmed in writing, including by e-mail
• A confidentiality clause (prices, business terms, client lists, business plans) with a period that continues to run after the agreement ends
• An article on the independence of the parties – the agreement does not create a partnership, a joint entity or an employment relationship, and neither party assumes obligations on behalf of the other
• Duration for a fixed or an indefinite term, the notice period and a rule that jobs already started are completed
• Liability for damage under the general rules of the Obligations Act (Zakon o obveznim odnosima) and final provisions requiring amendments to be made in writing
• Instructions for completion, with emphasis on the distinction from a contract for work and from a partnership agreement, and on invoicing and VAT

Who this template is intended for

• Sole traders and small companies who refer clients to each other or cover parts of the same job, for example a joiner and a decorator, or an accountant and an IT service provider.
• Agencies and freelancers who work on a lasting basis with subcontractors or partner studios.
• Companies appearing jointly before a larger customer who need to set out in writing who delivers what.
• Promotional partners who feature each other’s brand, share materials or run joint campaigns.

Important. This is not a contract for work or a partnership agreement. If you are ordering one specific result, use a contract for work. If you are contributing joint assets and sharing the profit and loss of a joint venture, you need a partnership agreement.

If you are ordering one specific job with an agreed result, a contract for work template is more suitable. Before exchanging sensitive information with a future partner it is also worth signing a non-disclosure agreement (NDA), and you can read more about the distinction between these arrangements in our guide on the business cooperation agreement.