Regardless of the legal form used for the Joint Undertaking, the most important document will be the JV Agreement, which defines all the rights and obligations of the partners. The objectives of the Joint Undertaking, the initial contributions of the partners, the day-to-day activities and the right to profits, as well as liability for losses incurred by the Joint Undertaking, are all set out in this document. It is important to design it carefully in order to avoid litigation. 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. Joint ventures, although they are a partnership in the common sense of the term, can adopt any legal structure. Limited companies, partnerships, limited liability companies (LLCs) and other business entities can all be used to create a JV. Despite the fact that the purpose of JVs is typically production or research, they can also be created for sustainable purposes. Joint ventures can combine large and small businesses to take over one or more projects and agreements, large or small. Joint Venture Contract – what other documents do I need? If you are entering into a joint venture with a business partner, it is recommended that you sign a confidentiality agreement. Who should use a joint venture agreement? A joint venture agreement helps you define the terms of your relationship with your business partners, including intellectual property, confidentiality and financial agreements. Persons or entities wishing to cooperate or set up a joint venture to implement a concept or idea may consider the use of a written joint venture agreement.
This Agreement contains the entire agreement and understanding between the Parties and supersedes all prior communications, assurances, agreements and understandings, whether oral or written, between the Parties regarding the subject matter of this Agreement. This Agreement may not be modified in any way except by a written amendment made by each party to this Agreement. A joint venture (JV) is not a partnership. This term is reserved for a single business entity consisting of two or more persons. Joint ventures connect two or more different companies to a new one, which may or may not be a partnership. Once the joint venture (JV) has achieved its goal, it can be liquidated or sold like any other company. For example, Microsoft Corporation (NASDAQ: MSFT) sold its 50% stake in Caradigm in 2016, a JV it founded in 2011 with General Electric Company (NYSE: GE). The joint venture was created to integrate Microsoft`s Amalga healthcare data and intelligence system as well as a variety of GE Healthcare technologies. Microsoft sold its stake in GE, thus terminating the joint venture. GE is now the sole owner of the business and can continue the business as it pleases.. . .
