The aim of cooperation agreements is to regulate relations and cooperation between the parties in the name of a common goal. The result of a cooperation agreement is benefits for both parties.

What should be agreed in a cooperation agreement?
A cooperation agreement should contain an agreement on the obligations and activities necessary for achieving the goal of cooperation and performance of the agreement, liability, financial agreements etc. Furthermore, the parties can agree in the agreement of it can be cancelled without the other party’s default or the agreement will remain in force until the end of the cooperation project if there are no violations. However, both parties can cancel the agreement extraordinarily if it is discovered that considering all circumstances and interests of both parties it cannot be expected that the party who wishes to cancel the agreement would continue performance of the agreement until the cooperation project is completed.

The parties to the agreement have the right to choose, which country’s legislation is applicable. If the legislation of a foreign country is chosen, readiness of the parties to apply the legislation of a foreign country should be assessed.

The parties to the contract may decide in which dispute settlement institution their disputes will be settled. Disputes may be settled in the court or in the court of arbitration (Court of Arbitration of the Estonian Chamber of Commerce and Industry).