Boilerplate Agreement

provide you with an idea of what to include in your agreement
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Warning: The boilerplate legal agreement provided is a template designed to provide you with an idea of what to include in your agreement. Each clause within the template offers various options to choose from, allowing you to customize the agreement to your specific needs.

This agreement includes certain standard provisions that may be applicable to your situation, though it might lack specific provisions/clauses.
While this template can be suitable for group buying or sharing less expensive items, it is essential to understand that if you are sharing more valuable assets or if you feel that the template does not fully meet your requirements, it is highly recommended to seek professional legal advice. Consulting with a lawyer can provide you with personalized guidance and ensure that your agreement adequately protects your rights and interests.

Adding a signature to each page is recommended for an extra layer of authenticity across all pages and terms. While not obligatory, it proves beneficial in cases where dishonest parties may attempt to evade agreements by claiming pages were swapped or that they hadn't reviewed all the terms and conditions.
The Benefits of a Written Agreement
  • Clarifies expectations and responsibilities: have a clear understanding of what is expected of them in order to avoid any misunderstandings or disputes.
  • Helps prevent amnesia: eliminates the possibility of participants using forgetfulness as an excuse for not fulfilling his/her obligations
  • Provides a handy reference: This reference can be used to remind group participants of his/her commitments, obligations, and expectations.
  • Leads to a well-thought-out plan.
  • Encourages consistency.
  • Promotes group harmony
  • Seals the deal: Some people are more comfortable committing their time, money, and energy to something if they are sure that everyone else is committed.
  • Creates group recognition and legitimacy.
  • Makes for easier enforcement if you want it

*Entire Agreement

Serves as a declaration that the written agreement embodies the complete understanding and agreement among the participants, supersedes any prior discussions, and provides a comprehensive overview of the arrangement's terms and conditions.
Example:
  • This agreement constitutes the entire agreement between the participants and supersedes all prior understandings or agreements, whether written or oral.

*Successors Bound

Ensures that the commitments, obligations, and benefits of the group buying / sharing arrangement extend to successors and assigns, offering stability and continuity even in the event of changes in ownership or membership, such as death, or transfer of right.
Example:
  • Automatically Transfer: His/her rights and obligations under this agreement shall be automatically transferred to his/her legal successors, who shall be bound by and adhere to all terms and conditions herein.
  • Option to Continue: His/her successors shall have the option to continue his/her participation in the deal and shall be required to abide by the terms of the agreement.
  • Not Transferable: The participation must correspond to the individual's name and/or personal and non-transferable, and shall not be passed on to his/her successors or any third party.

*Amendments

Outlines the procedures and guidelines for proposing, reviewing, and approving changes to the terms and provisions of the agreement. It establishes a collaborative process through which participants can collectively adapt and evolve the arrangement in response to changing circumstances or emerging needs.
Example:
  • Signed By All: Any modifications or amendments to this agreement must be made in writing and signed by all participants, except for minor modification/clarification outlined in the Deal's correction.
  • Signed By Majority: Any modifications or amendments to this agreement must be made in writing and signed by [Percentage] % of the participants, except for minor modification/clarification outlined in the Deal's correction.

*Validity

Protects your agreement in case you inadvertently included a provision that your state considers illegal, by making sure the entire agreement isn't doomed by the one bad provision
Example:
  • If any portion of this agreement is held by a court to be invalid, it shall be severed and the remaining provisions of the agreement shall remain in full force and effect.

*Choice of Law

Designates the jurisdiction and legal framework under which the arrangement is governed, providing a clear reference point for resolving disputes and interpreting the agreement within a specific legal context.
Example:
  • This agreement will be interpreted under the laws of the State of [State or City].

Purpose of Buying or Sharing

Outlines the primary objectives and intentions behind the formation of the group buying / sharing arrangement.
Example:
  • Reduce Cost: To reduce individual costs by sharing the expenses of a common item or service.
  • Access to Item: To increase access to a shared item or service that would be too expensive or impractical to own individually.
  • Reduce Waste: To promote sustainability by sharing resources and reducing waste.
  • Community: To foster a sense of community and collaboration among participants.

*Shared Asset

Provides essential details about the specific asset or assets that participants will collectively share with within the group buying / sharing arrangement.
Example:
  • The property located at the address: [Address].
  • The shared item is described as follows: [Description].
  • The following items are subject to group buying / sharing: [Item List].
  • Shared assets that do not have a designated owner, particularly in cases involving non-tangible.

*Participant

Outlines the current list of individuals who are actively participating in the group buying / sharing arrangement.
Example:
  • [Participants' Names].

New Participant

Outlines the criteria and processes for incorporating new participants into the group buying / sharing arrangement.
Example:
  • Participant Approval: [Percentage] % of the current participants must approve any new participant before he can join the arrangement.
  • Organizer Approval: The organizer holds the authority to introduce new participants based on his/her assessment of compatibility and adherence to deal objectives.
  • Open: New participants may join through an open invitation process, without restrictions, while maintaining alignment with group goals.

New Participant Contribution

Defines the financial or non-financial requirements that new participants must fulfill upon joining the group buying / sharing arrangement.
Example:
  • Ongoing Contribution: New participants will be required to contribute to any ongoing costs or expenses equally with existing participants from this point forward.
  • Initial Price Contribution: New participants are required to contribute a one-time financial contribution that is proportionate to the initial price paid by existing participants.
  • Market Price Contribution: New participants are required to contribute a one-time financial contribution that aligns proportionately with the current market price
  • One Time: New participants are required to contribute a one-time financial contribution of [Amount].
  • All Contribution: The contribution for new participants is proportionally based on the past, present and future participants' contribution to maintain equitable participation.

Full Payment

Establishes the conditions and potential outcomes associated with the deposit / partial payment made by participants to secure the reservation of an item within the group buying / sharing arrangement.
In the event of an unsuccessful deal, the deposit will be fully refunded. The following clauses outline the implications of the deposit if the Deal ends successfully.
Example:
  • Participation Deadline: The deposit / partial payment will be forfeited if the full payment is not received [Number] days after the Deal ends successfully.
  • Distribution Deadline: The deposit / partial payment will be forfeited if the full payment is not received by the Distribution Deadline (even if the item distribution is delayed).
  • Item Distribution: The deposit / partial payment will be forfeited if the full payment is not received by the time the item is distributed.
  • Late Payment: A late payment of [Amount] will be imposed for the full payments received after the payment deadline.

*Ownership

Establishes the framework for defining and managing ownership rights and responsibilities within the group buying / sharing arrangement.
This provision clarifies how shared assets, items, and contributions are owned, allocated, and managed among participants, ensuring a transparent and equitable approach to ownership within the context of the arrangement's objectives and guidelines.
More Info...

Example:
Direct ownership: each participant can own the shared items himself/herself.
  • Fractional ownership: Each person owns a fractional share of the asset based on the proportion of his/her purchase price.
  • Sole ownership: the organizer owns all.
  • Divisible ownership: each participant owns a particular detachable part of an asset.
Indirect ownership: form a separate entity, such as a nonprofit organization, to own the asset.
  • Unincorporated association.
  • Nonprofit public benefit corporation.
  • Nonprofit mutual benefit corporation.
  • Nonprofit fiscal sponsorship.
  • Cooperative corporation.
  • For-profit entities.
Ownerless
  • Shared assets that do not have a designated owner, particularly in cases involving non-tangible.

*Decision

Outlines the procedures and considerations for reaching significant decisions within the group buying / sharing arrangement.
Example:
  • Voting: Decisions will be made by using [Voting Method] voting mechanism.
    More Info...
  • Committee: Decisions will be made by a committee appointed by the group.
  • Expertise: Decisions may be delegated to individual participants based on his/her area of expertise or responsibility.
  • Organizer: Decisions will be made by the organizer.

Benefit / Profit / Loss Sharing

Outlines the methods and principles for distributing benefits, profits, or losses among participants within the group sharing arrangement.
Example:
  • Equal Sharing: Benefits, profits, or losses are divided equally among all participants, ensuring a fair and straightforward distribution.
  • Proportional Sharing: Distribution of benefits, profits, or losses is proportionate to each participant's contributions, reflecting their involvement and commitment.
  • Profit Proportional Sharing: Distribution of Benefits, or profits is proportionate to each participant's contributions, reflecting their involvement and commitment. However, losses are divided equally to prevent disproportionate impact.
  • Limited Profit Sharing: There is no profit, benefit, or loss sharing among participants. All benefits, profits, and losses are retained by the organizer. Participants' benefits are solely defined and outlined within the Deal's description.

Chores Allocation

Outlines the process and guidelines for the equitable distribution of tasks and responsibilities of the shared object.
Example:
  • Roster: A rotating roster is established, assigning specific chores to each participant on a regular basis to ensure equal distribution of responsibilities.
  • Preference Selection: Participants may express preferences for specific chores, and assignments are made based on preferences and availability.
  • Joint Effort: Chores are performed collaboratively by participants simultaneously, promoting shared responsibility and efficiency.
  • Clean After Use: Participants commit to cleaning shared resources immediately after each use, maintaining cleanliness and readiness for the next participant.
  • Points System: Chores are assigned point values, and participants accumulate points by completing tasks. A point-based rotation system determines future chore assignments.
  • Contribution-based Allocation: Chores are assigned based on each participant's contribution to the arrangement, ensuring that responsibilities reflect participation levels.
  • Cleaning Service: Chores will be managed by a cleaning service, and the associated cost will be incorporated as part of the ongoing expenses within the arrangement.
  • Owner Responsible: Each owner of a shared asset will take on the responsibility of cleaning and maintaining his/her own asset.
  • Review and Adjustment: Periodic reviews allow participants to discuss chore allocations and make adjustments as needed to ensure fairness and balance.

Usage Scheduling

Outlines the methods and options for scheduling the allocation and utilization of shared items and resources among participants within the group buying / sharing arrangement.
More Info...
Example:
  • Open Usage: Participants are granted the freedom to utilize shared resources at their convenience, potentially due to the allocation of individual assets.
  • Lottery Schedule: A lottery schedule involves randomly selecting dates for each person or group to use the shared object.
  • Fixed Time: This scheduling type involves assigning specific time periods to each co-owner.
  • Fixed Time with Offset: This scheduling type involves assigning specific time periods to each co-owner, enhanced with an offset, providing the opportunity for participants to experience different periods.
  • Priority Scheduling: This scheduling type is based on the principle that the co-owner who bought into the asset at a higher price will get a priority to pick the time.
  • Priority Scheduling with Offset: This scheduling type involve assigning priority to pick the time for each co-owner, enchanced with an offset, providing the opportunity for participants to get priority to pick the time on different periods.
  • As Needed / First Come, First Served: This scheduling type allows co-owners to reserve the asset on a first-come, first-served basis using an online calendar.
  • Agreement from Time to Time: This scheduling type involves regular discussions and agreements among co-owners to ensure that everyone gets a fair share of the asset.
  • Point-Based Scheduling: This scheduling type involves assigning a certain number of points to each co-owner every period, and each time slot of the period has a point value associated with the usage of the asset.

Excessive Utilization

Outlines the procedures and guidelines for addressing instances where participants exceed their allocated time, limits or usage thresholds within the group sharing arrangement.
Example:
  • Additional Charges: Excessive utilization may result in additional fees or charges, aimed at offsetting the heightened usage of shared resources.
  • Additional Charges & Termination: Excessive utilization may result in additional fees or charges, aimed at offsetting the heightened usage of shared resources and may lead to termination of the participant's privileges within the arrangement.
  • Termination: Repeated instances of excessive utilization may lead to termination of the participant's privileges within the arrangement.

Ongoing Cost

Defines the nature, allocation, and management of ongoing expenses that arise throughout the course of the group buying / sharing arrangement, ensuring clarity and equitable distribution among participants.
Unless addressed in a separate provision, ongoing costs may include: Maintenance, utilities, insurance, tax, cleaning, storage, consumables/supplies.
Example:
  • Proportional sharing: Ongoing costs will be divided among participants based on the proportion of their purchase price. This means that participants who contribute a higher amount towards the initial purchase will be responsible for a larger share of the ongoing costs.
  • Equal sharing: All participants will divide ongoing costs equally. This means that each participant pays an equal share of the costs, regardless of how much he/she use the shared item.
  • Usage-based sharing: Ongoing costs will be divided among participants based on their usage of the shared item. This means that participants who use the item more will pay a larger share of the ongoing costs.
  • Cost Itemization: Ongoing costs are itemized, and participants are billed proportionally based on their usage or ownership share of shared resources.
  • Owner responsible: The owner of the shared item will be responsible for all ongoing costs. In the case of divisible ownership, each owner assumes individual responsibility for the maintenance and upkeep of their respective shared item.

Collection of Ongoing Cost

Outlines the procedures and guidelines for effectively collecting and managing ongoing costs associated with the group buying / sharing arrangement.
If one person doesn't make the required contribution, the other can make the contribution and it will be considered a loan to the one who didn't pay.
Example:
  • Scheduled contributions: Each participant will make his/her share of the [Monthly/Yearly] contribution to cover expected ongoing costs.
  • Pay as you go: Participants will pay for ongoing costs as they come up. If the shared item needs repairs/maintenances, each participant will pay his/her share of the repair/maintenance costs at the time the repairs/maintenances are made.

Loss & Damage

Outlines the procedures and responsibilities pertaining to addressing loss, damage, injuries, or unforeseen circumstances affecting items within the group buying / sharing arrangement, ensuring a clear process for resolution and accountability.
Participants are exempt from liability for minor damages or wear and tear that occur as a result of reasonable and responsible usage.
Example:
  • Liability: The person who caused the loss or damage will be responsible for paying for the repair or replacement of the shared item.
  • Limited Liability: The person who caused the loss or damage will be responsible for paying for the repair or replacement of the shared item, up to the maximum value of his/her ownership or contribution.
  • Insurance & Deductible: Purchase insurance to cover any loss or damage to the shared item, each participant shall be responsible for the deductible on any applicable insurance policy.
  • Insurance: Purchase insurance to cover any loss or damage to the shared item.
  • Repair Fund: Establish a repair and replacement fund to cover any loss or damage to the shared item.
  • Divide Cost: Divide the cost of repairing or replacing the shared item.

Insurance

Outlines the policies and procedures related to securing insurance coverage for items within the group buying / sharing arrangement, safeguarding against potential risks and uncertainties.
Example:
  • Risk Factor: The cost of insurance for the shared asset shall be divided proportionally in accordance with the risk factor (such as age or recent accidents) or other factors that contribute to the insurance cost.
  • Proportional: The cost of insurance for the shared asset shall be divided based on the proportion of their purchase price.
  • Equal: The cost of insurance for the shared asset shall be divided equally among all participants.
  • Own Insurance: All participants shall be required to maintain their own insurance coverage for the shared asset.
  • Own Insurance & name other participants: All participants shall be required to name the other participants as additional insureds on their insurance policies for the shared asset.

*Dispute Resolution

Outlines the procedures and mechanisms for addressing disagreements, conflicts, or disputes that may arise among participants within the group buying / sharing arrangement, ensuring a fair and efficient resolution process.
Example:
  • Mediation, Dispute, Arbitration: Dispute will be resolved through mediation. If mediation fails to resolve the dispute, it will be resolved through arbitration.
  • Arbitration: Dispute will be resolved through binding arbitration.
  • Litigation: Dispute will be resolved through litigation in the courts of [State / City].
  • Negotiation: If a dispute arises, the participants will attempt to resolve it in good faith and in a timely manner through negotiation.
  • Mediator: If a dispute arises, the participants may agree to seek the assistance of a neutral third-party mediator to facilitate resolution.
  • Communicate: If a dispute arises, the participants agree to communicate openly and respectfully with each other in order to resolve the dispute and maintain the integrity of the shared ownership or usage arrangement.

*Dissolving

Outlines the specific circumstances and conditions under which the group buying / sharing arrangement may be dissolved, resulting in the complete disbandment of the group.
Example:
  • Mutual Agreement: If [Percentage] % of active participants choose to withdraw, the arrangement may be dissolved by mutual agreement.
  • Sold/Dispose: The arrangement will remain in effect until the shared item is sold or otherwise disposed of.
  • Timeline: The arrangement will start on [Start Date] and end on [End Date], after which the arrangement will be reevaluated for renewal.
  • End Date: The arrangement will remain in effect until [End Date], after which the arrangement will be reevaluated for renewal.
  • Organizer's Decision: The organizer has the authority to initiate the dissolution of the group if he/she determine that disbandment is necessary due to operational challenges, strategic considerations, or other compelling reasons.
    The organizer must provide written notice to the other participants within [Number] days prior to their intended dissolving.
Dissolving Compensation Outlines the compensation that a participant may be entitled to receive when the group is dissolved.
Example:
  • Unused: Each participant may be entitled for a refund of his/her contribution based on the portion of unused time or usage remaining within the arrangement.
  • Initial Contribution: Each participant is entitled to a refund of [Percentage] % of his/her initial contribution or share.
  • Market Price: Each participant is entitled to a refund of [Percentage] % of his/her contribution or share at the current market price.
  • Owned Item: Each participant may take his/her own individual item(s).
  • No Compensation: No compensation will be provided to the departing participant.

Withdrawing

Outlines the process and implications for a participant who chooses to voluntarily withdraw from the group buying / sharing arrangement, considering the conditions under which withdrawal is allowed.
Example:
  • Notice Requirement: Participants are required to provide a notification of [Number] days in advance.
  • Replacement: Withdrawal is only allowed when a replacement participant is identified and agreed upon by the remaining participants, ensuring continuity within the group.
  • Active Days: A participant must not withdraw participation before the completion of the initial [Number] days after joining the arrangement.
  • Event's Conclusion: A participant committing to participate in a specific event must refrain from withdrawal until the event's conclusion.
  • Fee Payment: A participant seeking to withdraw participation must pay a withdrawal fee of [Amount].

Withdrawing Compensation

Outlines the compensation that a participant may be entitled to receive upon voluntarily withdrawing from the group buying / sharing arrangement.
Example:
  • Unused: The departing participant may be entitled for a refund of his/her contribution based on the portion of unused time or usage remaining within the arrangement.
  • Initial Contribution: The departing participant is entitled to a refund of [Percentage] % of his/her initial contribution or share.
  • Market Price: The departing participant is entitled to a refund of [Percentage] % of his/her contribution or share at the current market price.
  • Owned Item: The departing participant may take his/her own individual item(s) and leave the shared item with the remaining participants.
  • No Compensation: No compensation will be provided to the departing participant.

Expelling

Outlines the process and criteria for expelling a participant from the group buying / sharing arrangement due to a violation of the agreement or disruptive behavior.
Example:
  • A participant may be expelled if his/her actions or behavior violate the terms of the agreement, compromise the arrangement's objectives, or disrupt the group's harmony.
    Any participant may be expelled by a vote of [Percantage] % of the remaining participants.
  • A participant may be expelled if his/her actions or behavior violate the terms of the agreement, compromise the arrangement's objectives, or disrupt the group's harmony.
    Any participant may be expelled by the organizer.

Expelling Compensation

Outlines the compensation that a participant may be entitled to receive upon expelling.
Example:
  • Unused: The departing participant may be entitled for a refund of his/her contribution based on the portion of unused time or usage remaining within the arrangement.
  • Initial Contribution: The departing participant is entitled to a refund of [Percentage] % of his/her initial contribution or share.
  • Market Price: The departing participant is entitled to a refund of [Percentage] % of his/her contribution or share at the current market price.
  • Owned Item: The departing participant may take his/her own individual item(s) and leave the shared item with the remaining participants.
  • No Compensation: No compensation will be provided to the departing participant.

Compensation Distribution

Outlines the timeline for the distribution of compensation to participants upon withdrawal, expulsion, or dissolution of the group buying / sharing arrangement.
Example:
  • The compensation will be distributed within [Number] days after withdrawal, expulsion, or dissolution.

To use the Agreement Generator, follow these steps:
  • After creating a Deal: go back to edit mode and click on Agreement tab.
  • Select any required clauses; if Not Applicable or Use Custom is selected, the clause will not be included. Certain clauses may require additional information, such as the city. Keep in mind that this is a general agreement generator, and there may be clauses that are not covered. In such cases, you can use the Custom Clause option at the end.

If you select the appropriate categories, the recommended clauses for those categories will be highlighted. Finally, when you add an agreement to your Deal, participants must agree to the agreement before making a reservation for the first time.
By using the Agreement Generator, you agree to hold us harmless from any errors, omissions, or misrepresentations contained within Agreement Generator

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