A joint product development contract is a kind of a contract or agreement which is formed in the case when two or more than two parties agree to develop a product in partnership or jointly. Joint product development is a common occurrence which takes place when only one person or company is unable to develop a certain product and thus joins hands with another for added resources, expertise and skills. A joint product development contract is designed to secure the rights of the involved parties so that they do not have to face any kind of loss in a situation where one of the parties breaches the terms or mutually discussed points.
A joint product development contract is a formally agreement which is legally enforceable in nature. This means that none of the parties is allowed to violate the terms and may have to face legal complications if it does so. The contract must give details of the parties, details of the product and respective responsibilities of the parties as far as development is concerned. The monetary details and share of profits and losses must also be clearly given in the terms and conditions of the joint product development contract.
Sample Joint Product Development Contract: