Joint Venture Agreement (Drafting)
JOINT VENTURE AGREEMENT
Joint Venture can be described as a business arrangement, wherein two or more independent firms come together to form a legally independent undertaking, for a stipulated period, to fulfill a specific purpose such as accomplishing a task, activity or project. In other words, it is a temporary partnership, established for a definite purpose, which may or may not uses a specific firm name.
FEATURES OF JOINT VENTURE AGREEMENT
1. JOINT CONTROL : Due to the joint venture there exist a joint control of the co-venturers over business assets, operations, administration and even the venture.
2. LEGALLY ENFORCEABLE : Joint venture agreement is legally enforceable agreement. On the breach of any terms and condition of agreement by any of the party both party can sue each other on the basis of Joint Venture agreement.
3. Dissolution : Once the term or purpose of the joint venture is complete, the agreement comes to an end, and the accounts of the coventures, are settled, as and when it is dissolved. The co-ventures are free to carry on their own business, unless otherwise provided in the joint venture agreement, during the life of the venture.