JOINT VENTURE AGREEMENT
A Joint Venture Agreement (JV) is a legally binding contract which defines the arrangement between two or more entities who wish to jointly develop a new entity for their mutual benefits. The main goal in any joint venture agreement will be to gain greater market exposure for a product or service, or to lower R&D costs.
Joint Venture Agreement Key Terms
A joint venture agreement template will typically include the following terms:
- A rationale for the collaboration
- The location of the principal place of business
- The scope in which the JV will operate
- The structure of the JV
- The members duties and obligations
- The members capital contributions
- How the JV will be controlled and managed
- How profits will be shared
- The interest in the JV that each party holds
- Meetings and voting rights of the JV
What is NOT a JV | Not Included in a Joint Venture Agreement?
A JV is not a partnership, not is it a consortium, although these terms may sometimes be interchangeable. A JV will join two or more entities into a new one, whereas a partnership denotes a single business entity that is formed by two or more people.
A consortium is more similar to a JV but is rather a more informal arrangement or agreement between businesses that already exist, as opposed to the creation of a new one, as is the case with a joint venture agreement.
Key Tips For A Successful JV & Joint Venture Agreement
- It’s always advisable to have a strong and consistent communication with all parties involved in the joint venture agreement, particularly if there are any material amendments required under the agreement.
- Openly sharing and disclosing all information between the parties will be essential to building trust, and ensuring that all the terms in the joint venture agreement have been submitted in good faith.
- One vision and goal between the parties, and performance metrics to have the ability to regularly measure areas of growth and areas requiring improvements.
- In the event that a dispute arises, added a dispute resolution clause in the joint venture template is also advisable, as opposed to going down the litigation route.
Product ID: 23922AR97
⇒ Revisions Approved
⇒ Plain English & Easy Editing
⇒ Guidance Notes Included
⇒ Money Back Guarantee
⇒ Length: 2 pages (min.)
⇒ Last Revision: 4 July 2020
⇒ Format: MS Word (.DOCX)
⇒ Rev. Number: 12990918
⇒ Product ID: 23922AR97