Joint Venture Agreement For Individuals
A joint venture (JV) is a commercial agreement where by which two or more parties agree to pool their resources for the purpose of carrying out a given task. This task can be a new project or another business activity. Each entity of the Joint Undertaking, which is an individual, a group of individuals, undertakings or entities, shall retain its separate legal status. A joint venture can be created by a contract describing the resources such as money, real estate, and other assets that each company will bring to the business. The contract also defines how the company is managed and the distribution of control – as well as profits and losses – of it. Sony-Ericsson, now Sony Mobile, is another famous Japanese-Swedish joint venture to develop smartphones that use each company`s expertise in the consumer electronics and telecommunications sector. Two companies or parties creating a joint venture may each have a unique context, skills and expertise. If combined by a joint venture, each company can benefit from the expertise and talent of the other in its business. Sign a joint venture agreement if you intend to pool resources with another company in order to pursue a common goal, in particular if sensitive information or profit-sharing agreements are involved. A Joint Undertaking Agreement shall define the conditions and obligations of the Members and of the Joint Undertaking.
Use a joint venture template that has been written by a lawyer to ensure that all the necessary information is included and that you are completely protected in the unfortunate event that something goes wrong. Before you start creating your own joint venture contract template, let`s first discuss how you would plan your joint venture agreement. Planning would be the first step in setting up a joint venture agreement. You need to take steps to be able to plan your joint venture successfully. The following persons in the following positions are the management of the Joint Undertaking (the « Management Team »). The management team will be structured in such a way that [DESCRIPTION OF THE MANAGEMENT STRUCTURE]. A joint venture may lead to the creation of a new separate entity or operate solely on the basis of an agreement between existing undertakings, without the creation of a new legal entity. The latter is called an unregistered joint venture. Other reasons why companies can enter into a joint venture relationship could be to have access to wider markets. Share resources, finance the growth of another company, develop or diversify products….