Corporate Law

A Joint Venture Agreement refers to a legally binding contract whereby the parties have mutually concurred on terms and conditions upon which two or more parties would embark on a particular venture or project. The members may be individual persons, companies, or entities that may join, for a certain period or a particular purpose.

 

 

The joint venture agreement usually discusses the following matters:

 

Purpose: It identifies the real purpose of the joint venture, stating precisely what a project is, its goals, and objectives.

 

Contributions: Individual contributions made by the various partners towards the venture could include both monetary and non-monetary, in terms of resources, personnel, and intellectual property.

 

Management and Control: This shall be the arrangement for management and control considerations, which shall include the selection of a management team and decision-making.

 

Profits and Losses: These define the respective ratio at which the parties are to share in the profits and losses of the venture.

 

Term and Termination: This refers to the life span of the joint venture, how far, and under what situation it can be wound up.

 

Intellectual Property: This describes who receives what as far as intellectual property rights are concerned with a party.

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Conflict Resolution: The heading which describes how disagreements are resolved amongst the parties to the joint venture.

 

A well-written joint venture agreement ensures that no dispute or conflict comes up during the course of the project as every party knows their rights and responsibilities in full.

 

In every instance when a written joint venture agreement is involved, it's always prudent to seek the services of an attorney or any other professional with experience in business law for help and advice to make sure the paperwork is pertinent and complete.