Transactional Lawyers

There are a couple of strategies for drafting term sheets. They can be extremely comprehensive leaving little material to the definitive documents or they can be very high level leaving most of the material terms to the definitive agreement. My preference and I think it often saves on legal costs is to have a very detailed term sheet. The reasons high-level ones are often used is because there is a need to get to a signed term sheet, the parties know each other or there is some other urgency that leads to having a less-than-detailed term sheet. The basic sections in a term sheet are: PART ONE (non-binding provisions) 1. BASIC TRANSACTION. Summarizes structure of transaction. 2. PRICE/ECONOMICS 3. OTHER TERMS. Both parties agree to be honest and straightforward in their warranties and representations. PART TWO. The following are the legally binding and enforceable agreements of the Parties. 1. ACCESS. Both parties shall provide access to any information the other entity may require throughout the transaction. 2. EXCLUSIVE DEALING. Both parties agree to stop looking for a similar entity to partner with. 3. BREAK-UP FEE (only in the M&A context but could be for a business deal to compensate party for other parties breach) 4. CONDUCT OF BUSINESS. Regular business should occur at both entities throughout the transaction. 5. CONFIDENTIALITY. Both entities will keep all materials, conversations and knowledge gained confidential. 6. DISCLOSURE. Both entities will not discuss the proposed transaction with anyone until completed then they will issue a press release together. 7. COSTS. Both entities pay their own professional service fees. 8. CONSENTS. Both entities will follow appropriate internal legal process/approval. 9. ENTIRE AGREEMENT. This document supersedes all previous documents and/or other forms of communication relating to this transaction. 10. GOVERNING LAW. The Binding Provisions will be governed by and construed under the laws of the State of [Washington] without regard to conflicts of laws principles. 11. JURISDICTION: SERVICE OF PROCESS. Defines how legal proceedings will work regarding this document. 12. TERMINATION. States when this document will expire. 13. COUNTERPARTS. Covers how the contract is signed. 14. NO LIABILITY. The past is wiped clean by this document, with respect to historical dealings between the two entities.

In most cases, a contract cannot be unilaterally amended by one party without the consent of the other party. Contracts are agreements that require mutual consent, so any changes to the terms must also be agreed upon by all parties involved, unless the original contract explicitly provides for unilateral amendments (which is rare in standard contracts, especially those related to partnerships).

I always recommend a signed agreement that covers the basics of "Q-TIPS"- this is for educational purposes only, by the way. The 1. Quantity 1 logo- plus, I would add the number of revisions under the agreement, because creative work often needs tweaks and you will be unprofitable when there are hours involved in 6 revisions when you only said 2. Time of Performance- 2 weeks? a month? 6 months? when will the project be done? When will payment be due? 3. Identity of the parties (pretty self-explanatory)4. Price (not your estimate, a contracted price) and 5. Subject matter. Not "logo" but an actual description with the colors, fonts, ideas. Finally, I would encourage project management software, like Trello, or Monday, or Asana, or whatever to track the phases of the project and the critical places the client must sign off on the design or document carefully the requests for revision. In a creative space, like graphic design, the final like or dislike can be subjective. You were hired to create a brand and an identity into a logo- and you didn't get paid. Based on the agreement, this is potentially small claims to enforce a verbal agreement.

This might not be the answer you expect, but I believe that the commercial or business terms are 100% the "key" or "most important" part of a Referral Partner Agreement. If you get that right, the legal provisions can be drafted to match, and you're much less likely to have a disgruntled partner overall. Specifically, the amount, frequency, and duration of the commission should coincide with other terms like exclusivity/non-exclusivity, how long commissions continue (i.e., one-time or for the duration of the end-user relationship), and other specifics that depend on the nature of your service, your customers, and your partners. Once you get the structure set, the legal provisions will naturally flow from there!