I had an email from a reader who is starting to collaborate with a friend and wondered whether it's necessary to have a formal, written agreement.
The answer is not only yes, it's YES!
What can go wrong? Well:
One of you could have a breakdown (there's the Charlie Sheen connection...)
One of you could die.
One of you could lose interest or get too busy with something else and want to quit the project halfway through.
One of you could decide the other isn't doing their share of the work.
I know it can be awkward to bring this up with a friend. It's a bit like a prenuptual contract. And it may never actually be needed but in case things go wrong you will be very happy you made the effort at the start. I'm not a lawyer, so this is not legal advice but I recommend that you write a simple document that includes:
* The names and addresses of the collaborators
* The name and a brief description of the project on which you are collaborating
* A brief description of what each of you will do on the project
* The terms of the collaboration in terms of the share of profits (usually 50/50, but if, for instance, it's a screenplay based on a book one of you had already written, it might be different)
* A provision for what happens if there is a dispute you cannot settle (for instance, "In case of a dispute, we agree to arbitration by a third party acceptable to both of us and agree to be bound by the recommendations of that party")
* A provision for what happens if one party no longer wants to or is able to participate (can the other person buy that one out? On what terms?)
That doesn't cover every possible development but it does address the main things that can go wrong. If you can afford it, consult an attorney to draft the agreement--ask him or her to keep it simple or else you'll end up with a fifty page monster. Get it witnessed and put it somewhere safe.
If things go well, you'll never need to look at it again. If not, it'll be there to help.
(If you want support setting and achieving a writing goal--like finally writing that book or screenplay you have in mind--sign up for my Writing Breakthrough Strategy Program. Find full details at http://www.jurgenwolff.com.
