Calculate the cost of developing a contract between individual entrepreneurs

Interaction between individual entrepreneurs can be a good solution for those who want to strengthen their activity with a profitable cooperation with another entrepreneur with whom it is possible to make successful endeavors that are relevant for both parties. A key opportunity offered by such an agreement is to generate more revenue from the activity as the parties' efforts can be pooled. At the same time, the conditions of such interaction may be different. We suggest you familiarize yourself with this in more detail.

What are the types of agreements on joint activity?

If we briefly talk about the key classification of such contracts, then they can be with or without pooling of deposits. The format should be determined according to what is the key purpose of your interaction, the specifics of economic activity and starting conditions. For example, if we are talking about two entrepreneurs who want joint production, it will require specific investments at the level of raw materials and equipment. And when we talk about entrepreneurs who work in the field of providing consulting services online, there may be unnecessary contributions for cooperation.

What terms of the contract are considered essential?

As for the essential terms of the contract, they include:

• Subject. The purpose of which entrepreneurs interact determines the nature of such cooperation. Therefore, this essential circumstance must be reflected in the contract.
• Price. Financial aspects are also extremely important in the field of economic relations.
• Contract term. When entrepreneurs set themselves a goal that unites them, they plan the terms of its implementation. Therefore, it will be relevant to mention all important aspects regarding the term of cooperation.
• Defining a common goal. Any business cooperation is built around a common goal, which is at its core. That is why the goal should be specified.

As for the areas of application of such contracts, they can be different, because in any industry, entrepreneurs may have a need and desire to join forces for a common result. As evidenced by the practice of the Prikhodko&Partners law firm, clients often request support in concluding such contracts when it comes to the fields of agriculture and construction.

What else is worth knowing about such a contract?

The agreement on joint activities is being registered with the DPS authorities. This is provided for in Art. 64 (clause 6) of the Tax Code of Ukraine. Among other agreements that are subject to accounting in the control bodies, there are also agreements on joint activities on the territory of our state, which do not provide for the creation of legal entities. The Code states that these contracts are subject to tax accounting features, as well as activity taxation.

Why the help of good lawyers is fundamentally important?

When people begin to interact in business relationships, such relationships must be properly regulated. Otherwise, there is a risk that cooperation will be complicated. Also, the risk of unscrupulous counterparties should not be excluded. Unfortunately, no one is immune from this, despite the fact that people mostly try to make the most positive impression at the beginning of cooperation. In such cases, competent normalization of relations from a formal point of view, when it comes to the contract, is very relevant, because then it is easier to defend your rights in court.

Of course, this is far from the only reason why it is worth entrusting the drawing up and assistance in signing the contract to specialists. We treat this matter in such a way that your legal interests are maximally represented and protected in the document.