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Joint Venture Agreement is a written understanding of terms and conditions between the parties. It sets out the terms as well as the obligations of the members and joint venture. Let’s know more about this in this article and on Joint Venture Agreement Format.
It is an arrangement wherein two or more parties come together or join each other to carry on a particular business or project. A joint venture can be useful for the small as well for large businesses. A JOINT VENTURE business facilitates with an option to establish a short-term or single-purpose business or if successful the same can be turned in to a Corporate entity alike Company, LLP.
Yes, often the joint venture creates a separate business entity and the new entity may be a Company, a Partnership or a Limited liability Partnership.
The Joint Venture and partnership may have some similarities but they are not common.
Parties enter into joint venture agreements on demand to pool assets, strength and increase competitive advantage while minimizing risk.
It is one of the easiest ways to enter a foreign market.
A joint venture (“JV”) commences when the parties come into a contract or an agreement called, “Joint Venture Agreement”.
Joint Venture may be created for a specific time period or for a specific project.
It should specifically contain detail on the following:-
A Joint Venture Agreement format should contain all the above mentioned elements.
A joint venture agreement fulfils various objectives and benefits by improving clarity, guarding the parties and acts as evidence. The agreement also allows the parties to retain their legal identity[1]. Please find the attachment of Joint Venture Agreement format.
Read our article: A Critical Analysis on Memorandum of Association under the Companies Act, 2013
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