In the 21st century of cannabis, cannabis businesses of all sizes still ignore some contract basics. Whether it’s a cannabis distribution agreement, a cannabis intellectual property licensing agreement, or some form of cannabis M&A, the contract basics listed below need attention.
Date the agreement
This seems obvious and trivial, but a lot of companies skip this extremely basic step. If there’s any dispute between the parties, you may be impaired by the lack of this essential documentation. Just make things easy on yourself and define the “Effective Date” of the agreement as the date on which all of the parties sign.
Get your recitals straight
Lots of cannabis companies think that contract recitals don’t matter. This isn’t true. Recitals can be crucial where they give context to the agreement, describe the parties’ intent and history, and may be incorporated as enforceable provisions into the agreement itself.
Get your changes in writing
Most agreements contain boilerplate provisions requiring that all enforceable changes be made in writing and signed by all parties. Of course, the parties are also free to agree on enforceable verbal changes, creating a multitude of messes during the agreement. Just get your contractual changes (amendments) in writing to
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