From the course: Strategic Partnerships

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Step 3: Set partnership terms

Step 3: Set partnership terms

From the course: Strategic Partnerships

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Step 3: Set partnership terms

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- The terms of the deal are the nuts and bolts of every partnership. Putting together these terms and negotiating the agreement is step three in your partnership process. This is where you'll agree with your partner on who will do what, how decisions will be made, and what each side will earn from the joint activities. These are all business questions, not purely legal ones. That is why your partnership contract is too important to be left to your lawyers. Your lawyers will draw up the formal agreement between you and your partner, but you need to tell them what you want in the agreement. In setting these terms, form should follow function, like in good architecture. How you set the terms will determine how your partnership will function. You'll need to think hard about three sets of issues. First, think about who will do what in the deal. What are we buying from each other. What markets are we addressing together. What rules do each of us have in shared activities like research and…

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