I think 2-person projects are perfect. As an individual, I am too likely to be distracted or bored by the project to make it a success. With a partner, there is an integrated responsibility and we can complement each other with our widest sum of skills and competences. In the case of the small project for which I am currently using this contract, I work with a product/UX design specialist and make everything else available. If, after the first year, we agree to stop working on the project, we simply consider that the contract is cancelled, that we cancel all those due to us by the project and that we disconnect the software systems (if any). Any money that is part of the project is used to pay for unpaid expenses and then distributed proportionally according to the capital owed to us by the project. After the first year, if one of us wants to leave the project, but the other wants to continue (a “split”), we agree to share responsibility for managing the project in the same way and, as such, we will not make business decisions without consulting the other. For our protection, in the event that the net income generated by the proceeds exceeds ___ Are there risks for such an easy deal when it comes to a real cash investment in a project? Sure, but the idea is that the risk can start small while experimenting and finding out if the project is really worth following. Sometimes you get lucky and a project takes off. This clause recognises this situation and states, in the Minutes, that if this happens, we will take the necessary measures to make the whole thing more formal. Even the thinnest product startups will still have expenses like domain name registration and server, and someone has to pay for it. This agreement provides that each party “precipitates” the expenses of the project, waiting to be reimbursed sooner or later.
If one of us wishes to leave the project after the first year, but the other wishes to continue (a “split”), the one who leaves the project accepts a payment equal to the previous 12 months of net profit (EBITDA) that the product has earned in compensation for its contributions to the project. If the product has never made a net profit at the time of splitting, the quitclaim payment is equal to ____ ______ You should see one of my most successful small incomes next to passive income called MSABundle. It contains a number of legal contract drafts that I have developed and used in my businesses, including the co-founder Memorandum of Understanding linked above, which represents a much heavier and legal version of the agreement described in this blog post…