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The Curious Bag
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A joint venture agreement is a written agreement between two entities, individuals or companies, to combine property and assets to carry out one common business purpose. Each entity or party shares in the profits and loses of the joint venture.
Features
Joint venture agreements always state the entities or parties involved, the specific purpose to which each entity is working toward, signatures of each party and also lists all assets and property coming together.
Types
Agreements can be arranged for a specific purpose, event or duration. They can also be for an indefinite time period, as long as both entities are still in existence.
International Joint Venture
Joint ventures may combine a domestic and foreign entity to form an international joint venture. Such designation shall be made in the agreement.
Structure
Joint ventures may be structured as a corporation, partnership, limited liability company or limited partnership. Parties should choose entities based on the nature and purpose of the venture
Suggestions
Joint ventures are complex transactions. It is recommended that you see an accountant or attorney for consultation before drafting or signing an agreement.
Source:
University of Iowa Center for International Finance and Development: What is a Joint Venture?
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