What is the meaning of Joint Venture?
A joint venture is a kind of commercial partnership wherein two or more parties agree to combine their resources to accomplish a certain task. Moreover, this venture can be formulated either to accomplish a business task or to provide new commercial activity.
What is the role of an agreement in Joint Venture?
As we all know agreement is a set of rules and regulations which defines the rights and liabilities of each party signatory to it. Therefore, in joint ventures wherein two or more companies merge to ascertain the accomplishment of any task or activity, in such situations it is very important to regulate the relationship between parties with the aid of agreement so that the balance could be maintained and the possibility of any dispute or fraud can be ruled out.
What is the importance of Joint Venture agreement?
An agreement between the parties plays an important role in defining their roles and responsibilities. The same role is played by the Joint Venture agreement in defining the roles and responsibilities of the parties signatory to it. The importance of Joint Venture agreement comes into play because the venture consists of different companies and by way of an agreement their profit, losses, expenditures, duties and responsibilities are defined separately. Therefore, it is very important to have a joint venture agreement so that no conflict situation can arise between the parties.
How to draft a Joint Venture agreement?
Drafting is a very vital skill as the future of contracting parties is based upon the skills of drafting. Therefore, to ensure an equal balance among both the contracting parties it is important to draft any agreement and contract in a careful manner.
Nour Attorneys Law Firm has a highly qualified team of lawyers and legal consultants who have extensive experience in drafting joint venture agreements. Our law firm works in a highly proficient manner to draft joint venture agreements and secure the interest of our clients. Here are some of the key points required in drafting joint venture agreements.
KEY POINTS
- Title of the agreement must be clear
- There must be correct details of the business address and names of the parties
- The definition clause must be there
- Duties and Obligations of both parties must clearly be specified
- There must be a detail of any new venture forming out of the joint venture (if any)
- Voting rights of the parties and meeting requirements
- There must be a clause regarding proper procedure allocation and distribution of profit, expenditure, and losses
- There must be terms and conditions require for the termination of the contract
- There must be a clear procedure defined if parties want to dissolve their joint venture
- It must also possess a confidentiality clause
- It must also contain a dispute resolution clause that can specify the situation of laws applicable in case any dispute arises between the parties
EuroMea Legal Services is always committed to providing the best advice and results to our clients. Therefore, in case you need any suggestions or help in relation to the matters related to the drafting of joint venture agreement you can contact us freely. Our team is fully committed to performing their duty and delivering positive results.
