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Well-known companies and small businesses alike engage in joint ventures. This strategy will ensure you avoid making legal mistakes that haunt you in the future. Business lawyers can learn more about your business relationship and draft a joint venture agreement that satisfies both party’s needs. While the list referenced above is a great start, you may need to include other provisions within your agreement. After deciding on the right partnership, move the relationship forward by drafting a joint venture agreement that includes specific provisions.īelow, we’ve outlined a checklist of the 10 key elements of a joint venture agreement: Ask yourself if the relationship truly strengthens your market position. The most essential element of a joint venture agreement is evaluating if the chosen partner is right for your company. Key Elements of a Joint Venture Agreement Partnership agreements indicate an ongoing, long-term relationship. A joint venture agreement is used in the commission for a single activity for a specified period. Enter JV agreement amendments as necessary Seek ongoing advice to maintain legal compliance Draft the first iteration of your joint venture agreement Discuss opportunities with potential partners

The steps below outline how joint-venture agreements work: The contract ensures that all parties understand their rights, responsibilities, and limitations. Doing so allows targeted outputs to be delivered more efficiently and effectively. Joint venture agreements are accommodating and can be drafted to merge companies of any size on specific projects. You must put your joint venture agreement in writing to protect your rights if a dispute arises. In contrast, a separate legal entity is formed through a corporation or limited liability company (LLC). There are two types of joint venture agreements, including:Ĭontractual joint ventures exist solely through a written contract. The party’s benefit by receiving proportionately split profits and distributed ventures. They usually seek to join both party’s resources to achieve a specific objective. Joint venture agreements, also called JV agreements, are contractual consortiums of two parties.