Business Core · Partners · Module

The agreement

What each side commits to, in writing, including what happens when it stops working. The last part is the one most often left out.

The idea

How it works

An agreement is read carefully twice: when it is signed and when the relationship is failing. It should be written for the second reading.

Exit terms are the clearest signal of how a partnership is understood. Negotiating them while everyone is optimistic is far easier than negotiating them later, and the willingness to discuss them is itself informative.

Working with it

In practice

  1. 01

    Write obligations as observable commitments

    What is delivered, by when, to what standard. “Best efforts” is not a commitment.

  2. 02

    Settle IP and data before signing

    Who owns what is created jointly, and what happens to shared data at the end.

  3. 03

    Negotiate exit while optimistic

    Notice, transition assistance, and what each side keeps. Do it now or do it in a dispute.

  4. 04

    Match liability to consequence

    A cap far below the damage a failure would cause means the risk sits with you regardless of the words.

One level in

The components of the agreement

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The obligations

    What each side delivers, by when, to what standard.

    Learn
  2. The commercial terms

    Price, payment terms, and how they change over the term.

    Learn
  3. The exit terms

    Notice, transition, and what each side keeps when it ends.

    Learn

Write the agreement for the second reading — the one that happens when the relationship is failing.