Apr 30, 2021 A joint venture contract is a legal document in a business partnership to discuss the terms and conditions of the joint venture. When it comes to constructing a joint venture contract for your business, the joint venture agreement template is what you need for. The models are available with many formats such as PDF, MS Word, Google Sheet,.
- Joint Venture Contract
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JOINT VENTURE AGREEMENT FOR _____________,
- This is a Joint Venture Agreement sample to be used as a reference for making a written statement made by two or more parties in association to their plans for cooperation. Freewordtemplates.net Comprehensive Microsoft Word templates repository to download hundreds of free word templates, including resume, calendar, invoice, receipt, agenda.
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A __________________ (state) JOINT VENTURE
This Joint Venture Agreement (herein after referred to as the “Agreement” ) is entered into this _____ day of _______________, 20 _______, by and among ____________________, a ___________________ corporation, and ___________________, a corporation, (hereinafter collectively referred to as the “Joint Venturers”) for the purpose of performing: _______________________.
W I T N E S S E T H:
WHEREAS, the parties are desirous of forming a joint venture (the “Venture”), under the laws of the State of ________________ by execution of this Agreement for the purposes set forth herein and are desirous of fixing and defining between themselves their respective responsibilities, interests, and liabilities in connection with the performance of the before mentioned construction project; and
NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the Parties herein agree to constitute themselves as joint venturers, henceforth, “Venturers” for the purposes before mentioned, and intending to be legally bound hereby, the parties hereto, after first being duly sworn, do covenant, agree and certify as follows:
1.1 “Affiliate” shall refer to (i) any person directly or indirectly controlling, controlled by or under common control with another person, (ii) any person owning or controlling 10% or more of the outstanding voting securities of such other person, (iii) any officer, director or other partner of such person and (iv) if such other person is an officer, director, joint venturer or partner, any business or entity for which such person acts in any such capacity.
1.2 “Venturers” shall refer to _____________ Inc., and _______________, and any successor(s) as may be designated and admitted to the Venture.
1.3 “Internal Revenue Code”, “Code” or “I.R.C.” shall refer to the current and applicable Internal Revenue Code.
1.4 “Net Profits and Net Losses” means the taxable income and loss of the Venture, except as follows:
1.5 The “book” value of an asset shall be substituted for its adjusted tax basis if the two differ, but otherwise Net Profits and Net Losses shall be determined in accordance with federal income tax principles.
1.6 “Project” shall refer to that certain City of ___________________, _______________ (State) construction project known as _____________.
1.7 “Treasury Regulations” shall refer to those regulations promulgated by the Department of the Treasury with respect to certain provision of hate Internal Revenue Code.
1.16 “Percentage of Participation” shall refer to that figure set forth in Article _______ at section ___________.
FORMATION, NAME, AND PRINCIPLE PLACE OF BUSINESS
(a) The Venturers do hereby form a joint venture pursuant to the laws of the State of _____________ in order for the Venture to carry on the purposes for which provision is made herein.
(b) The Ventures shall execute such certificates as may be required by the laws of the State of ____________ or of any other state in order for the Venture to operate its business and shall do all other acts and things requisite for the continuation of the Venture as a joint venture pursuant to applicable law.
The Name and style under which the Venture shall be conducted is:
2.3 PRINCIPAL PLACE OF BUSINESS
The Venture shall maintain its principal place of business at: _________________________. The Venture may re-locate its office from time to time or have additional offices as the Venturers may determine.
PURPOSE OF THE JOINT VENTURE
The business of the Venture shall be to perform: _____________________ project having the Contract #, being entitled , and being in a dollar amount of $________________ ., in accordance with the contract documents for the Project and all such other business incidental to the general purposes herein set forth.
The term of the Venture shall commence as of the date hereof and shall be terminated and dissolved upon the earliest to occur of: (i) completion of the Project and receipt of all sums due the Venture by the Owner, ________________ pursuant thereto and payment of all laborers and materialmen employed by the Venture in connection with the project; (ii) _________________ _________________ ; (iii) the unanimous agreement of the Ventures; or (iv) the order of a court of competent jurisdiction.
PERCENTAGE OF PARTICIPATION
5.1 Except as otherwise provided in sections 6.0 and 9.0 hereof, the interest of the Parties in any gross profits and their respective shares in any losses and/or liabilities that may result from the filing of a joint bid and/or the performance of the Construction Contract, and their interests in all property and equipment acquired and all money received in connection with the performance of the Construction Contract shall be as follows:
NameJoint Venture Partner Percentage
5.2 The Parties agree that in the event any losses arises out of or results from the performance of the Project, each Venturer shall assume and pay the share of the losses that is equal to the percentage of participation.
5.3 If for any reason, a Venturer sustains any liabilities or is required to pay any losses arising out of or directly connected with the construction of the Project, or the execution of any surety bonds or indemnity agreements in connection therewith, which are in excess of its Percentage of Participation, in the Joint Venture, the other Venturer shall promptly reimburse such Venturer this excess, so that each and every member of the Joint Venturer will then have paid its proportionate share of such losses to the full extent of its Percentage of Participation.
5.4 The Venturers agree to indemnify each other and to hold the other harmless from, any and all losses of the Joint Venture that are in excess of such other Venturer’s Percentage of Participation. Provided that the provisions of this subsection shall be limited to losses that are directly connected with or arise out of the performance of the Project and/or the execution of any bonds or indemnity agreements in connection therewith and shall not be relate to or include any incidental, indirect or consequential losses that may be sustained or suffered by a Party.
5.5 The Parties shall from time to time execute such bonds and indemnity agreements, including applications there and other documents that may be necessary in connection with the performance of the Project. Provided however, that the liability of each of the Parties under any agreements to indemnify a surety company or surety companies shall be limited to the percentage of the total liability assumed by all the Parties under such indemnity agreements that is equal to the Party’s Percentage of Participation.
5.6 INITIAL CONTRIBUTION OF THE VENTURE.
(a) The Venturers shall contribute the Property to the Venture and their Capital Account shall each be credited with the appropriate value of such contribution in accordance with their Venture interests.
(b) Except as otherwise required by law or this Agreement, the Venturers shall not be required to make any further capital contributions to the Venture.
5.7 VENTURE INTERESTS
Upon execution of this Agreement, the Venturers shall each own the following interests in the Venture:
Joint Venture Partner: Percentage
5.8 RETURN OF CAPITAL CONTRIBUTIONS
(a) No Venturer shall have the right to withdraw his capital contributions or demand or receive the return of his capital contributions or any part thereof, except as otherwise provided in this Agreement.
(b) The Venturers shall not be personally liable for the return of capital contributions or any part thereof, except as otherwise provided in this Agreement.
(c) The Venture shall not pay interest on capital contributions of any Venturer.
5.9 ALLOCATIONS OF NET PROFITS AND LOSSES
Subject to the provisions of this Article, the Net Profits and losses of the Venture (including any net “book” gains of the Venture resulting from a Capital Event) shall be allocated to the Venturers in the following priority:
A. NET PROFITS
(1) First, to those Venturers with negative Capital Accounts, between them in proportion to the ratio of their negative Capital Account balances, until no Venturer has a negative Capital Account.
(2) Thereafter, to the Venturers, pro-rata, based on their respective Venture interests as set forth in Section 5.2 hereof.
B. NET LOSSES
(1) Subject to the provisions of this Article VI, Net Losses of the Venture (including any net “book” loss of the Venture resulting from a Capital Event) shall be allocated to the Venturers, pro rata, based upon their respective Venture interests as set forth herein.
(2) For purposes of this, Capital Accounts shall be adjusted hypothetically as provided for in Sections 1.704-1(b)(2)(ii)(d) and 1.704- 1(b)(4)(iv)(f) of the Treasury Regulations. These adjustments shall include the qualified income offset as set forth in this Agreement.
Distributable Cash of the Venture shall be distributed to the Venturers, pro rata, based on their respective Venture interests as set forth herein.
6.1 The management of the Joint Venture shall be conducted pursuant to policy established by the Parties acting through a “Policy Committee” which is hereby established.
6.2 Except as provided in sections 6.0 and 9.0, each Party shall have a voice in the Policy Committee equal to its Percentage of Participation. For such purpose each Party is assigned the following number of votes and hereby designates the following representatives to exercise such votes:
PARTY VOTES REPRESENTATIVES
6.2 Each Venturer may, at any time, substitute an alternative in place of any of its above-named representatives by serving written notice to all the other Parties. Each Venturer’s representative or alternative representative on the Policy Committee is hereby granted and shall hereafter possess authority to act for such Venturer on all matters of interest to it with respect to its participation in the joint venture.
6.3 The Policy Committee shall determine the policy for the management of the joint venturer by majority vote and, as used in this Agreement, a “majority vote” is defined to be any figure greater than one-half of the authorized votes.
6.4 The Policy Committee shall have the following powers:
(a) To determine the time and place of holding its meetings and the procedures for conducting Committee Affairs.
(b) To determine and act upon the various matters, expressly or impliedly contained in other section of this Agreement, which require decision by the Policy Committee.
(c) To determine and act upon any other matters of joint interest to, or requiring prompt action by the Joint Venture.
(d) To determine rental rates not specifically set out in the Additional Provisions of this Agreement for equipment owned by the Venturers and made available for use on this project. Any equipment owned by third parties will be invoiced to the joint venture at actual rental costs.
(e) To determine insurance reserves and reserves for other potential liabilities that may result from or arise out of the Project work.
(f) To consider all claims and disputes of any kind between the joint venture and the Owner, subcontractors and/or third Parties and to authorize negotiation, arbitration, litigation, and/or any other process for their resolution and to authorize the settlement thereof.
6.5 Notwithstanding any other provisions to the contrary herein, insurance coverages and limits shall be subject to approval of all the parties.
6.6 The Policy Committee shall generally perform its duties at a meeting at which all designated representatives of the Parties are present, but where circumstances warrant, telephone communication between all party representatives or their alternatives is authorized.
6.7 Except as otherwise provided in the Additional Provisions herein, the salaries and expenses of each of the representatives on the Committee shall be borne by the Party whom the representative has been designated to represent and shall not be an expense to the joint venture.
DELEGATION OF AUTHORITY
7.1 The Venturers agree to a split of authority betweens themselves as follows:
a. ___________________ shall be the Administrative Managing Partner responsible for all bookkeeping and payroll of the Joint Venture.
b. ___________________ shall be the Project Managing Partner in charge of the Project work.
7.2 The Project Managing Partner shall appoint the General Manager through whom it shall direct charge and supervision of all matters necessary and connected with the performance of the Construction Contract, with the exception of that performed by the Administrative Managing Partner.
7.3 Authority to act for and bind the Venturers in connection with any and all of the performance of the Project may be delegated in writing by unanimous vote of the Venturers to any designated individual(s).
JOINT VENTURE BANK ACCOUNTS
8.1 All Working Capital or other funds received by the Joint Venture in connection with the performance of the project shall be deposited in a Checking Account, set up especially for the Joint Venture, and requiring the joint signatures of the parties for any withdrawals. Said accounts shall be kept separate and apart from any other accounts of the Venturers.
8.2 Withdrawal of funds from the Joint Venture’s Joint Checking Account may be made in such amount and by such persons as authorized by the Policy Committee.
ACCOUNTING AND AUDITING
9.1 Separate books of accounts shall be kept by the Administrative Managing Partner of the transactions of the Joint Venture. Any Venturer may inspect such books upon reasonable notice and at any reasonable time.
9.2 Periodic audits may be made upon said books at such time as authorized by the Policy Committee by persons designated by the same and copies of said audit shall be furnished to all Venturers.
9.3 Upon completion of the Project, a final audit shall be made and copies of such audit shall be furnished to each of the parties.
9.4 It is understood and agreed that the method of accounting used by the Administrative Managing Partner and for state and federal income tax purposes shall be the cash based method and that the accounting year shall be the calendar year.
9.5 The Administrative Managing Partner shall receive additional compensation in the amount of 3% of the total Project amount for the use of its data processing system and accounting, payroll and tabulating work. Work performed by the Administrative Managing Partner’s in-house counsel or executive secretary on behalf of the Joint Venture shall be charged separately to the Joint Venture’s account at a rate agreed upon by the Venturers.
RESOLUTION OF DISPUTES
10.1 All disputes arising out of this Joint Venture Agreement between the Venturers that is not resolvable by good faith negotiations by the same, shall be filed in the division of the ______________________, Inc., and shall be settled by arbitration under the rules of the __________________, Inc. In so agreeing the parties expressly waive their right, if any, to a trial by jury of these claims and further agree that the award of the arbitrator shall be final and binding upon them as though rendered by a court of law and enforceable in any court having jurisdiction over the same.
11.1 This agreement constitutes the entire agreement of the parties and may not be altered, unless the same is agreed upon in writing signed and acknowledged by the parties.
11.2 This agreement is binding upon the heirs, court appointed representatives, assigns, and successors of the parties.
11.3 This agreement shall be governed by the laws of the state of _________.
So agreed and executed this _____ day of _______________, 20 ____.
JOINT VENTURE PARTNER #1
JOINT VENTURE PARTNER #2
JOINT VENTURE AGREEMENT
This Joint Venture Agreement (“Agreement”), made and entered into as of this ______ day of _______________, 20 _____, by and between _________________ of __________ (“___________________ “) and __________________ of ____________________ (“ ______________“).
1.01 Business Purpose. The business of the Joint Venture shall be as follows: [Describe Business Purpose]
1.02 Term of the Agreement. This Joint Venture shall commence on the date first above written and shall continue in existence until terminated, liquidated, or dissolved by law or as hereinafter provided.
The following comprise the general definitions of terms utilized in this Agreement:
2.01 Affiliate. An Affiliate of an entity is a person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control of such entity.
2.02 Capital Contribution(s). The capital contribution to the Joint Venture actually made by the parties, including property, cash and any additional capital contributions made.
2.03 Profits and Losses. Any income or loss of the Partnership for federal income tax purposes determined by the Partnership’s fiscal year, including, without limitation, each item of Partnership income, gain, loss or deduction.
Joint Venture Contract
OBLIGATIONS OF THE JOINT VENTURERS
_____________________ is responsible for all operations and decisions of the Joint Venture and will be compensated for providing various services.
4.01 Profits and Losses. Commencing on the date hereof and ending on the termination of the business of the Joint Venture, all profits, losses and other allocations to the Joint Venture shall be allocated as follows at the conclusion of each fiscal year: _________ _______% ____________ ________ %
RIGHTS AND DUTIES OF THE JOINT VENTURERS
5.01 Business of the Joint Venture. ________________ shall have full, exclusive and complete authority and discretion in the management and control of the business of the Joint Venture for the purposes herein stated and shall make all decisions affecting the business of the Joint Venture. At such, any action taken shall constitute the act of, and serve to bind, the Joint Venture. ___________________ shall manage and control the affairs of the Joint Venture to the best of its ability and shall use its best efforts to carry out the business of the Joint Venture. _________________ shall not participate in or have any control over the Joint Venture business nor shall it have any authority or right to act for or bind the Joint Venture.
AGREEMENTS WITH THIRD PARTIES AND WITH AFFILIATES OF THE JOINT VENTURERS
6.01 Validity of Transactions. Affiliates of the parties to this Agreement maybe engaged to perform services for the Joint Venture. The validity of any transaction, agreement or payment involving the Joint Venture and any Affiliates of the parties to this Agreement otherwise permitted by the terms of this Agreement shall not be affected by reason of the relationship between them and such Affiliates or the approval of said transactions, agreement or payment.
6.02 Other Business of the Parties to this Agreement. The parties to this Agreement and their respective Affiliates may have interests in businesses other than the Joint Venture business. The Joint Venture shall not have the right to the income or proceeds derived from such other business interests and, even if they are competitive with the Partnership business, such business interests shall not be deemed wrongful or improper.
PAYMENT OF EXPENSES
All expenses of the Joint Venture shall be paid by ___________________ and shall be reimbursed by the Joint Venture.
INDEMNIFICATION OF THE JOINT VENTURERS
The parties to this Agreement shall have no liability to the other for any loss suffered which arises out of any action or inaction if, in good faith, it is determined that such course of conduct was in the best interests of the Joint Venture and such course of conduct did not constitute negligence or misconduct. The parties to this Agreement shall each be indemnified by the other against losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by it in connection with the Joint Venture.
9.01 Events of the Joint Venturers. The Joint Venture shall be dissolved upon the happening of any of the following events: (a) The adjudication of bankruptcy, filing of a petition pursuant to a Chapter of the Federal Bankruptcy Act, withdrawal, removal or insolvency of either of the parties. (b) The sale or other disposition, not including an exchange of all, or substantially all, of the Joint Venture assets. (C) Mutual agreement of the parties.
10.01 Books and Records. The Joint Venture shall keep adequate books and records at its place of business, setting forth a true and accurate account of all business transactions arising out of and in connection with the conduct of the Joint Venture.
10.02 Validity. In the event that any provision of this Agreement shall beheld to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement.
10.03 Integrated Agreement. This Agreement constitutes the entire understanding and agreement among the parties hereto with respect to the subject matter hereof, and there are no agreements, understandings, restrictions or warranties among the parties other than those set forth herein provided for.
10.04 Headings. The headings, titles and subtitles used in this Agreement are for ease of reference only and shall not control or affect the meaning or construction of any provision hereof.
10.05 Notices. Except as may be otherwise specifically provided in this Agreement, all notices required or permitted hereunder shall be in writing and shall be deemed to be delivered when deposited in the United States mail, postage prepaid, certified or registered mail, return receipt requested, addressed to the parties at their respective addresses set forth in this Agreement or at such other addresses as may be subsequently specified by written notice.
10.06 Applicable Law and Venue. This Agreement shall be construed and enforced under the laws of the State of ______________.
10.07 Other Instruments. The parties hereto covenant and agree that they will execute each such other and further instruments and documents as are or may become reasonably necessary or convenient to effectuate and carry out the purposes of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of theday and year first above written.
Signed, sealed and delivered in the presence of:
State Specific Joint Ventures Forms
—- For State Specific Joint Ventures Forms you can download in Word format, go to
There may come a time when your business would start a project and there would be a need for a strategic alliance with an individual or a team in order to complete it. In cases like these, you would most likely need to make a joint venture agreement so that everything would be clear to both parties involved. Unlike a partnership which would last longer or even permanently, a joint venture would only last as long as the project is ongoing. As soon as the project is completed, then the joint venture would come to an end as well.
Table of Contents
- 4 Types of Joint Venture Agreements
Having joint ventures would generate a separate legal unit, apart from the business units of each individual party. This means that costs, income, and ownership of assets would run through the joint venture and go straight to the individuals or businesses involved. Both parties would have to make contributions of their assets, maintain equality and agree on how the unit is to be managed. Once the business project or activity has been completed, it would mean that the joint venture has met its objectives and the unit would also come to an end.
Joint Venture Agreement Templates
Typically, two parties enter into a joint venture would do so for their own individual benefits, which would usually come from the main objectives of the business project they plan to undertake. Whatever purpose you may have for entering a joint venture agreement, the most important document which you should have is a joint venture agreement. If you are planning to enter into a joint venture, you should know how to make your own joint venture agreement template.
In this article, you will learn all about joint ventures, joint venture agreements and even steps and tips in making your own joint venture agreement sample. Read on to learn all these relevant information to be guided for the future.
Benefits of Having a Joint Venture Agreement
Since the joint venture agreement is an essential document to have when entering a joint venture, then it probably comes with a lot of benefits, right? The answer is yes, there are a lot of benefits to making an actual joint venture agreement template which we will be discussing now. Learning these benefits would help you make an informed decision on whether you’d want to make one for your next joint venture.
- It would give you a chance to learn new things, gain insight and expertise in your field of business. Entering into a short-term joint venture with another individual or organization would expose you to other perspectives which in turn would allow you to understand how things work a lot easier.
- Entering a joint venture would allow you access to more and possibly better resources as you would be sharing everything related to your project or business activity. These resources could be in the form of special equipment, expert staff members as well as any new technology which your own organization may not yet have.
- Both parties would share everything equally – from risks and costs to benefits and proceeds. This would mean that if in case your project fails, you won’t have to deal with the failure on your own. Both parties would be liable and both parties would end up supporting the losses.
- Joint ventures are flexible which means that you can set and agree upon the terms of the whole project together. This would also mean that since it won’t last for very long, you have the option to only limit your commitment as well as the exposure of your own business organization.
- Joint ventures can end in a sale from one partner to the other. If one of the parties feels that the continuation of the project or activity they had begun together would be beneficial to their own organization, then that party can buy out the other.
- Smaller businesses can benefit a lot from joint ventures especially if they partner with a bigger business or brand. There would be a higher chance of project success if one of the parties involved would already have a reputable name. If the project does succeed, the credibility of the smaller business would increase vastly as well.
- Creating short-term partnerships with other organizations and businesses would give you a chance to build and cultivate long lasting relationships with other business owners. Having a lot of contacts and connections is always beneficial especially if you own a business and you are just starting in the market.
- If you are lacking in funding, you will still be able to take on new projects and make new ventures and business deals in the process. You would also save a lot of money since you will be sharing everything equally, even when it comes to marketing costs such as advertising.
- Starting joint ventures internationally would give your business or organization a good image as it would give the impression that you do not discriminate. This would also give you the opportunity to meet with new people with different cultures and backgrounds.
As you can see, having a joint venture agreement can be quite beneficial to your business or organization. Now that you know all the benefits, let’s take a look at the different types of joint venture agreements which you can get into.
Joint Venture Agreement Sample Free Download
Sample Joint Venture Agreement
Types of Joint Venture Agreements
There are different types of joint venture agreements which you can make. They would depend mainly on the purpose of the joint venture and the objectives it is meant to achieve. In any case, a joint venture would have to be agreed upon by two separate parties who want to achieve the same goal for their own benefit. Here are the different types of joint ventures:
Joint Venture Agreement (Type 1)
Basically, this is when two separate parties agree to work on a single business project or business activity. Both parties would agree on the terms and rules of the joint venture agreement and once the project or activity is done, the joint venture ends as well.
Joint Venture Entity
In this type, a new company or corporation is created by two separate (and typically smaller) companies. The main people involved in this type of joint venture become shareholders of the new company and it then serves to conduct the business of the joint venture.
Joint Venture Agreement Sample Free Download Word
Marketing Joint Venture
This type is formed when two parties come together with an agreement for the purpose of selling their products or services. The main purpose of this type of joint venture is that the marketing efforts and costs are reduced while the products or services gain a wider market and reach. Some examples of this type of joint venture would include, but are not limited to:
- printing of brochures and flyers with combined advertisements
- sharing websites or ad spaces
- co-producing and co-hosting press releases, seminars or events
Offshore Joint Ventures
This type of joint venture is usually formed when a parent company or a main company makes an agreement with its branches or smaller companies to transfer resources (such as technology), secure their intellectual rights or market their products and services domestically.
As you can see, there are different types of joint ventures which you can do and they depend on your main purpose or objective for forming one. As you can see, having a joint venture can be beneficial to your company as long as you know all about it and how you would be making your own agreement and get the other party to sign. Before you start drafting a template, let’s take a look at the important elements your agreement must contain.
Important Elements of a Joint Venture Agreement Template
Knowing the benefits of having a joint venture agreement as well as the types you can make would probably get you thinking about starting one to improve your business. Before we go into making a template of your agreement, let’s go through the most important elements of a joint venture agreement:
- First off, you would have to name the parties which are involved in the agreement. The names should come with a short description about what the company is about, how it operates and what it would be bringing to the table.
- The objectives of the joint venture should also be placed in your agreement. Without clear objectives or purposes, your joint agreement won’t have much bearing as this is probably the most important part of the agreement.
- The contributions each party will make to the joint venture. These contributions can come in the form of funding, assets, or even employees who would be working to achieve the goals of the joint venture.
- Any intellectual property which will be developed by the ones involved in the joint venture.
- Daily management procedures along with solutions to any issues or problems which may arise throughout the joint venture.
- What to do if the either or both parties decide to end the joint venture.
- A confidentiality clause or a non-disclosure agreement which will serve to protect both parties from any legal issues.
If your agreement has all these, then it would most likely be an effective one. Now let’s move on to the planning stage of your joint venture.
Free Joint Venture Agreement
Planning Your Joint Venture Agreement
Before we get into making your own joint venture agreement template, let’s first discuss how you would plan your joint venture agreement. Planning would be the first step in making a joint venture agreement. You would have to take steps in order to be able to successfully plan out your joint venture.
- Identify why you would need a joint venture. At some point in your organization’s operation, you might come to a point where you would need reinforcements in the form or new equipment or technology you may not have or staff and employees who are experts in a given field.
- Establish the objectives of your joint venture, which would be beneficial to both parties. You would have to come up with a description of the main purpose or objective of the joint venture which you need to document so that you can share it with your potential partners to get them interested.
- Look for potential partners for your joint venture. You may have to do some research in order to find the best individuals or organizations which would be able to help you achieve the goals of the joint venture.
- Network and build relationships with other companies so that you can find out more about them and their businesses. This is a good strategy especially for beginning organizations as you will be learning a lot in the process and when the right time comes, you would know who to call upon to be your partner in a business venture. Once you’ve met with some great people and business owners, take time to schedule informal meetings with them so that they also get to learn about you and your company.
- Once you’ve picked a good company, try to determine if it would be a good fit with your own company and the purpose of the joint venture. You would have to agree upon the objectives and what you will be willing to contribute to the joint venture to see it succeed. Both companies have to be equally supportive and knowledgeable on how joint ventures work.
- Come up with a nondisclosure agreement for both parties to sign. This should state that both companies would work openly with each other and communicate about anything and everything regarding the joint venture. This would ensure that neither parties would have the opportunity to take advantage of the other the whole time.
- Make your letter of intent as this would be the first step in forming an official joint venture agreement. It should contain the purpose of your planned joint venture as well as the intent to negotiate terms of the agreement.
Follow these guides to be able to start your joint venture. Once you have a good partner in mind and you’ve sent your letter of intent, you can start thinking about making your template for the agreement.
Joint Venture Agreement Examples
How to Make Your Own Joint Venture Agreement Template
So now you’ve planned your joint venture and you’re ready to make an agreement with a second party. For you to make a good joint venture agreement sample you may need some helpful steps and tips to guide you.
- Make a decision on what kind of format you’d like to use for your joint venture agreement template. Examine the scope and purpose of your joint venture along with your partner along with the expected time frame. A joint venture can take on any forms such as a partnership, a brand new organization or even a contractual agreement.
- For larger projects, you may have to create a new organization or a new corporation. This new entity should come with a new identity and a set of staff members and superiors, though there may be an overlap of the employees with the two partner companies.
- If you’d like to remain in your separate companies, then you can form a joint venture partnership wherein you won’t have to merge with another party. The agreement then would establish how you would be sharing responsibilities as well as liabilities.
- You can draft a contract or a joint venture agreement sample for smaller or more temporary projects which you see as just a one-time deal. In doing this, both parties keep their identities and merely join resources to complete a specific project.
- When making your agreement, you should first introduce the main purpose of the joint venture and the parties which are involved. Name the parties and give a short narrative describing their operations. Also introduce the title of the joint venture with a short narrative describing its purpose.
- Establish all the important and specific terms and/or issues and define them clearly. You can create a heading for this portion to emphasize it.
- Lay out the goals and objectives of the joint venture. Having this would allow both parties to focus on what needs to be accomplished as the project is being carried out.
- Lay out the formation of the joint venture. To do this, both parties would have to agree on whether they would be creating a new corporation with a new identity or retain their own companies and identities.
- Establish how the joint venture will be managed. To ensure the success of your joint venture, both parties would have to agree on how the project will be run. You would need to define the management structure, the whole process of selecting the people who will be in charge, any compensation to be given to the people involved in the project, the responsibilities and limitations of the selected management as well as how often you will be meeting your people.
- Discuss any issues or concerns regarding finances related to the joint venture. Establish how profits, assets and costs will be shared and talk about what each party would have to give to the joint venture in terms of funding or other resources.
- Define the roles and responsibilities of all the people involved in the joint venture. Talk about from which party the employees will come from and what they will be doing to be able to carry out the purpose of the joint venture.
- Think about any disagreements or issues and agree on what is to be done when these issues arise. You would have to give clear procedures on how to solve problems.
- Make a clear timeline wherein the objectives of your joint venture should have already been met. State the exact date when the joint venture is to end as well as what is to be done when you decide to end the joint venture before the end date. This could be because the project is already failing or the continuation of the project doesn’t make sense, financially, anymore.
- Add a clause for confidentiality, especially if either party or both parties require it.
- Finally, you should add in a part where the authorized people would affix their signatures. The agreement should be signed by both participating parties for it to be official. Both parties should also have a copy of the final, signed agreement.