JOINT VENTURE AGREEMENT
Joint ventures provide businesses with an opportunity to form short-term, single-purpose partnerships, thus deriving many of the benefits of strategic partnership without many of the liabilities. Below is a general overview of the characteristics, advantages and disadvantages of using a joint venture to accomplish your business’s goals.
To form the joint venture, the co-venturing partners contribute funds, goods or equipment at the outset. The proportion which each partner contributes can be 50% each, or it can be in unequal amounts, with one contributor providing a majority of the resources for the formation and initial operation of the venture. The instructions that follow this overview provide general information about formation and operation of a joint venture.
One of the benefits of a joint venture is its lack of permanency. As opposed to a partnership, which can create a number of responsibilities, duties and obligations on the part of each partner, a joint venture generally only obligates its partners to those specific duties and obligations set forth in the Joint Venture Agreement. Further, joint ventures frequently have short, defined durations. Many joint venture agreements provide for the venture to terminate and cease its existence after only a few years. Such time-limited joint ventures represent less of a commitment on the part of the partners than would a standard partnership.
Another benefit offered by joint ventures is that it allows companies to share expertise or relationships with other companies to penetrate new markets, or to develop new products or services, thus benefiting both parties. For example, smaller companies can join with larger more established companies to share expertise and develop new technologies, affording the larger company access to new research materials, while affording the smaller company additional clout and market presence. Further, such strategic relationships can combine to decrease competition in a particular market, making it easier for the partners involved to penetrate that market.
Easydrafting.in role in providing Joint Venture Agreement:
|PREPARATION TIME||2 to 3 days after we receive the details for preparing the Joint Venture Agreement|
|VALUE OF THE STAMP PAPER||Rs. 100 (Will be provided by us)|
|NOTARY||Required (Will be provided by us)|
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