What's the Joint Venture Agreement?
A joint venture agreement, also known as a co-venture agreement, is a contract between two or more parties who want to do business together for a period of time. Instead of creating a formal partnership or new legal entity, a contractual joint venture (“JV”) allows the parties to continue filing their tax returns separately yet still reap the financial advantages of a partnership such as sharing resources and risks.
What are included in a Joint Venture Agreement?
A joint venture agreement will identify the following fundamental elements: Parties or Co-Venturers: the two entities that have agreed to work together. Contributions: how much money, property, or time each of the co-venturers will invest. Management: the person responsible for the day-to-day operations of the venture. Purpose: scope of JV activities and reason to join resources and collaborate. Profits: how profits will be distributed, either based on contributions or another formula. Term: whether the venture is for a limited time or indefinite period. What's more, there are some useful details a a joint venture agreement might include: Assignment: neither party may assign the venture Confidentiality: both parties agree to keep all proprietary information confidential Exclusivity: neither party is required to do business only with the other co-venturer Termination: the venture will end when a goal is accomplished or by a certain time
Why choose Joint Venture Agreement?
Two or more businesses form a joint venture when they wish to join forces for a common purpose where they will each share in the risk and reward. It allows each business to grow without having to look for outside funding. Other reasons businesses may enter into a joint venture relationship could be to gain access to wider markets, share resources, fund the growth of another business, develop products, or diversify. If you are a smart entrepreneur, you will definitely choose to download this template and save time to prepare your joint venture agreement. Download our joint venture agreement and start your successful career!