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Joint Venture / Development Agreement
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Joint Venture / Development Agreement
Get the joint venture agreement prepared for a property owned mutually.
INTRODUCTION
A company survives on profits and gains which it gets through its business. Profit allows the company to further expand itself and bloom in the future. A Joint Venture Agreement provides two companies to join its forces for attaining larger profits. A Joint Venture Agreement allows your company to join forces with other companies for attaining mutually profitable goals. That goal could be anything such as exposure of a product in a market or to provide for the manufacturing of a particular product. The Joint Venture Agreement is also known as the Co-venture Agreement, Joint Undertaking, Joint Venture Contract.
WHAT IS A JOINT VENTURE AGREEMENT?
Joint Venture Agreement is a short-term contract between more than one company for completing a project or venture together which would mutually benefit all the entities involved in the agreement. Joint Venture Agreement allows the companies to share their resources to other such as personnel, capital, facilities, intellectual properties, etc. The agreement also helps the companies to attain expertise which it did not have earlier. It also lessens the burden of the risk because both the companies would share the risk as well.
WHEN IS JOINT VENTURE AGREEMENT USED?
- A joint venture agreement is used when the other company and your company wants to decrease the cost of research and development.
- It is also used when the companies involved in the agreement want to merge their expertise for the production or promotion of a specific product.
- The Joint Venture Agreement also helps the companies to expand their access on the market.
Joint Venture Agreement is a tool that is used by all the types of companies be it small or large. It allows the companies to strengthen their functioning and lower the risk factor by risk -sharing.
WHAT ALL SHOULD BE INCLUDED IN A JOINT VENTURE AGREEMENT?
There are several key points which are to be included in the Joint Venture Agreement and those are listed below:
- The name of the companies entering into the agreement and the date of the formation of the agreement.
- The purpose of the joint venture agreement.
- The declaration of the rights and obligations which would arise out of joint venture.
- The name offered to the joint venture.
- The terms of the joint venture business and the location of the principle place of the business.
- The capital set for the joint venture.
HOW CAN WE HELP YOU?
A Joint Venture Agreement helps your company to strengthen its ties with other companies and provides an upper hand to the companies in the joint venture. If your company wants to form a Joint Venture Agreement with other company, then you have to first go see a lawyer and follow the legal formalities. But with our help your work would become less bothersome and hassle-free. We will assist you in drafting a strong and accurate agreement which would be defect-less and effective. So, just relax and let us handle the legal angle of your venture.
Frequently Asked Questions
Types of Joint Ventures India are: Contractual joint venture Equity based joint venture
Joint ventures are formed by at least two parties with the objective of achieving a specific investment return. Unlike many other business agreements, when the objective is achieved, the joint venture is usually terminated.
Risk sharing and Combining expertise with capital:
- One company may be interested in buying the other business.
- The market may have changed, making the partnership no longer necessary.
- One or both of the companies may have newly established goals.
- The purpose of the contract was not fulfilled.
- The shared goals of the joint venture may no longer be applicable.
- The time period set in the contract has lapsed.
While joint ventures are similar to partnerships in many ways, a joint venture is a collaboration on a specific goal or project, and a partnership is a business structure that will dictate how it needs to operate in regards to state law and how it will be identified for tax purposes.
Joint Venture Agreement is a legal document where two or more entities combine to do business or undertake an economic activity together.
The parties either agree to form an agreement without incorporation of new entity but with the common intention of running a business or create a new entity by contributing equity and share the revenues, expenses and control of the enterprise in the proportion of their capital contribution.
When drafting a joint venture contract, there are multiple sections that should be included in every contract and we at Acreok will help you in drafting the agreement in accordance with your needs.
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