Following are two types of joint venture agreements

  1.  Contractual
  2.  Separate legal entity

Contractual joint ventures exist exclusively through a written contract. In contrast, a separate legal entity is set up through a corporation or limited liability company (LLC).


 Some of the most important elements of JV agreements are:

  • All the objectives that the joint agreement was created for.
  • A clear layout of the contributions provided by both companies whether in cash or assets, as well as the value of all those contributions.
  • Each of the parties' individual functions in the project is specified.
  • Instructions on how the parties will communicate to stay updated on the progress of the project.
  • The period that the partnership will be in effect.
  • Instructions for how the venture can be terminated if it no longer works out.
  • Terms laid out for who will manage the general options of the project.
  • Whether profits will be established on the level of contribution of each party or by a specific formulation.
  • A section that includes terms for specific details of the project.  

A legal expert is required to draft the legal document to make it precise and accurate.

To get best legal services visit-  bestlegalservices.in