ABSTRACT
A contract is the principal means by which the costs, risks, and rewards of a business venture are allocated between the participating parties. For biochemical prospecting projects, contractual negotiations are likely to focus on the extent and exclusivity of the rights to the biological resources being granted, as well as the form, timing, and amount of financial and in-kind payments. Understanding and, where possible, quantifying the implications of alternative compensation and risk-sharing arrangements can be helpful in negotiating superior terms for biochemical prospecting contracts. Understanding the implications of various contractual arrangements can also be of value to international organizations seeking to promote an equitable and efficient biochemical prospecting market.
