The purpose of business cooperation contracts is to lay the foundations for successful cooperation between business entities.
This type of contract is not regulated or precisely defined in Slovenian legislation but has been developed on the basis of legal practice between business entities.
Business cooperation contracts are contracts that regulate the terms and conditions of business cooperation between two, usually legal, persons. They are an agreement between a contractor who undertakes to provide a service and a client who orders the service from the contractor and undertakes to pay for it.
Each business cooperation contract is tailored to the specific business for which it is concluded. Important elements of a business cooperation contract include:
- subject of the contract: a precise definition of the subject of the contract;
- obligations of the parties: definition of the obligations of the parties (i.e. what service will be provided and what payment will be made);
- duration of the contract: definition of the time period of the contract under which the parties will cooperate;
- contractual penalties: definition of the penalties in case of a breach of contract or delay in the performance of a service or payment;
- payment terms: definition of the payment term for services rendered;
- withdrawal from the contract: definition of a breach of contract and the possibilities of withdrawal and termination;
- other essential elements such as: business secrets, return of documentation, liability for damages, dispute resolution, etc.
The essential rights and obligations of each party must arise from the contract itself. Otherwise, the rules of the Obligations Code governing the contract closest in content and purpose to the contract in question apply.
IMPORTANT: A business cooperation contract should not be equated with a partnership or consortium agreement (contract). The latter is based on a completely different legal basis, i.e. a call for tenders and the subsequent conclusion of a contract between the funder and the lead partner on the basis of the call for tenders. The partnership/consortium agreement itself is a guarantee that all the partners in the call will do their work for the purpose of the project.
The partnership agreement is also not regulated in Slovenian law but has evolved through practice. The specific legal bases applicable to each (European) funding programme must be taken into account when drawing up such agreements (contracts). In particular, you should not forget to define in detail the terms and conditions that define who, what, why, to what extent, in what manner, by when, under what conditions, with what (financial) resources and in what amount the agreed project activities and the corresponding obligations will be carried out or provided.
Find out more about the types of employment available in Slovenia.
Find out more about what you need to know when signing a contract.