KnowledgeCooperation Agreement and all the risks

“I received a very interesting collaboration offer, where I as a producer can produce as much as possible and my partner as a marketing partner will guarantee the performance of all my products. Where are the mines? ”

There is a saying, “If something looks too attractive, it may not be that attractive in reality.” Based on this adage, you are correct in asking where the mines of the offered cooperation agreement are located. This indicates that you already understand the business risks and are not blinded by the lure of “big profits”.

First, see what form the “guarantee” is. Soil? Money? Or is it just a promise? If it’s just a promise, set a monthly target and penalties if your partner fails to meet that target. Because as a manufacturer, the risk is almost 100% in your hands.

Second, see whether the cooperation agreement contains elements of a hostile takeover. There are many tricks that are often used by people, especially foreign entrepreneurs, to later take over ownership of your business, either with sanctions that can make you bankrupt or put your assets as collateral for an agreement.

If your company is at stake, then inevitably you MUST consult your contract with the experts first. If not, then you could possibly sign your own company death certificate.


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