Joint Venture Agreement or also known as the Joint undertaking, the JV agreement, and co-venture agreement, is a written statement and agreement made by two or more parties in association to their plans for cooperation. Usually, the cooperation can be on the field of business or certain project (it can also be the project in a business) which need big money so the parties agreed to cooperate.
Then if you have a company or business and have found a partner for cooperation, there is no harm if you use a joint venture agreement. This needs to be done to safeguard the rights and responsibility of each party. Moreover, you and your partner will get benefits by making this written statement. In addition, by making the Joint Venture agreement then you can save some money for you and associated parties but of course this agreement should be made in detail.
You will need Joint Venture Agreement if…
You can use or create this document when you and a few others decided or are planning to cooperate in business. This needs to be done to keep the air clear between one and another party. In addition, it will help you and related parties to be objective when making decisions related to the business.
Benefits of Signing Joint Venture Agreement
Other advantages offered by the JV agreement (besides saving money of related parties) it will be much easier to update the latest news relating to the business, the name of your company is increasingly recognized by other companies even by the general public, you have a lot of networks and you are able to do network expansion to any business, and of course the ability to producing products is going to be increase.
Of course, each party in this joint venture agreement has the same rights and responsible. Then it makes anything happen such as the profits which came from the business should be divided equally as well.
Generally, by using the Joint Venture agreement you have entrusted your business to be nurtured and developed by many parties, the participants of Joint Venture agreement. Then the objective side of the business will be stay balance and duties of each participant have been set in it. The profits will be shared equally on all participants as well as if the business suffered a loss, then all parties must be held responsible. You can read a Joint Venture agreement sample below to be used as your reference.
Joint Venture Agreement Template (75.0 KiB, 1,380 hits)