Advice needed on Domain Contract

[DomainersNet]

Need your advice on setting up a contract between myself and domain owner.

I contacted the owner of a generic domain that was just sitting there, with not even a parking page, and asked whether I could buy the domain giving him an offer on it. He came back to me a few weeks later with a counter offer saying that he would sell it for a minimum of $XXX,XXX. Fine, I was kind of expecting this with this name.
So, I thought, why not suggest to him that I do the website and we split the profits a certain way. He agreed and we met up recently and he has agreed for me to propose a simple contract to sign. Basically, he has not had the time to do anything with the domain for ten years!!
He could park the domain but there is more money to be made on developing it.

I need your advice on how to setup a simple contract between myself and the owner. The owner needs to still own the domain and I need to make sure the profits are split. Also, what happens if the owner decides to sell the domain? Do I suggest a clause in the contract? I know it is his domain but what if the development of the site leads to the sale of the domain and site? What do I do?

Any suggestions/comments appreciated.

[DNjet]

I would see an attorney to make the contract, so your rights will be protected.

[Welkin]

Also, what happens if the owner decides to sell the domain? Do I suggest a clause in the contract? I know it is his domain but what if the development of the site leads to the sale of the domain and site?

I think that you have to add such clause in the contract. And also why not include that he owns the domain but you own the site. If the domain is sold with the site then definitelly you have to receive the profit from the site. I think you have to talk with him before signing the contract and discuss the various possibilities. If he do not intend to cheat you he would agree with your reasonable demands.

[DomainersNet]

Thanks for the advice.

I think that you have to add such clause in the contract. And also why not include that he owns the domain but you own the site. If the domain is sold with the site then definitelly you have to receive the profit from the site. I think you have to talk with him before signing the contract and discuss the various possibilities. If he do not intend to cheat you he would agree with your reasonable demands.

I will make sure a clause is added.
What happens if the domain was to be sold in the future with the site? How would the valutation be split? I will discuss all of this with him. Good point Welkin about me owning the site and him owning the domain if it was to be sold in future.