Partnership Agreement: what it is, how it works

The Partnership Agreement is recommended for companies and professionals who want to collaborate for economic, social  development in business. Find out who can sign it and the characteristics of the partnership agreement .But let’s try to understand more, to understand what are the cases in which it is used and what is the convenience of such an agreement.

Definition of partnership

A partnership, as mentioned, is therefore a collaborative relationship between two companies and – regardless of their size or how long they are on the market – who want to carry out common projects or which are complementary to each other.

It is a form of association-ism between companies that provides for a commercial activity under the same banner and with a territorial exclusivity without giving rise to structured operating and / or management systems. Between the two partners there is total independence which excludes any idea of ​​mutual control.

A distinction must be made between two different types of partnership:

  • the vertical partnerships involving businesses that are not on the same level of the value chain, such as for example the agreement that there may be signed between producer and distributor
  • the horizontal partnerships  between companies of the same level, but which perhaps operate in different sectors and which begin to collaborate by making available their different skills and experience acquired or the different customer segments.

Partnership Agreement: Characteristics

Collaboration between companies is obviously regulated by a contract, which establishes its aspects and duration and which creates a flexible and horizontal system.

Among the most common methods of partnership or partnership there is that of services. This is because the sale of products implies a more complex organization that concerns the logistics as well as the distribution of goods and if the creation of an effective and widespread sales network is also physically sold.

The Partnership Agreement

The agreement must contain essential elements provided by the Civil Code:

  • objectives of the collaboration project
  • duration and termination of the agreement
  • roles and responsibilities of the parties involved
  • indications of the parties: project leader and partner
  • membership, suspension and renunciation of partners
  • what is the law of reference and what is the competent forum in case of non-compliance with the agreement

To know: the duration is usually not particularly long, but is around the year. Furthermore, the agreement practically never provides for the supply of know-how or specific training, this is because it is usually stipulated by companies that are already active in their reference market.

Some differences compared to the franchise consist precisely in this, in addition to the fact that a partnership is a very flexible aggregation and there is not even a sum to enter (the so-called entry fee or periodic fees).

 Partnership Agreement between professionals: what it is and what is meant

In addition, the word partnership also indicates a collaboration between a limited number of people to manage a business. Professionals, therefore, as companies do, can “come together” to create networks that allow them to practice the profession.

They can also take part in business networks, mixed networks or even establish stable, professional consortia as well as temporary professional associations (ATP).

The fact that they can become business partners and thus participate in the calls for assignments and private contracts is one of the innovations introduced by the Jobs Act of the autonomi . Unlike in the past, in fact, professionals can play a leading role in participating in the race, with a network, together with companies, etc … without being a second-rate figure who intervenes once the contract has been obtained.

Public private partnership

The partnership between the companies and the Public Administration that cooperate to build and manage infrastructures or provide services of public interest deserves a special mention. This form of collaboration is done above all to help the PA which, by collaborating with one or more companies, manages to have greater investments and at the same time skills that it does not have within it.

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