Joint venture agreement template is a legal contract that states the agreements between mutual parties. In the contract, the parties may agree to form a partnership to share markets, intellectual property, assets, knowledge etc. A professional designed sample joint venture agreement can help business partners to form a strategic alliance in an efficient format.
Joint Venture Agreement Format
Joint venture agreement needs to take the culture issue into account. When you are planning to form a partnership with others, both parties need to know that strategic alliances are built on trust and convergent goals; one of the main risks facing the joint venture is that the partners are from different corporate culture. They may not trust operating a certain way or have divergent goals. Even with similar strategic goals, two partners who lack trust in each other may lack the willingness to cooperate.
Joint venture agreement needs to consider the mutual benefits of parties. A joint venture is only effective when there is a true willingness to move forward together. Not even signed contracts have value if mutual trust and acceptance of the terms are not present. It is actually better not to consider a joint venture project if motives from either side are questioned by the other side.
Joint Venture Agreement Template
There are free joint venture agreement template you can download for reference, however, you may create your own sample agreement based on your own style and format.
The first key section in joint venture agreement template is the details of all involved parties. In the section, you may include: Part A____; Address____; Party B___; Address ___. You may also include the explanation and interpretation of special terms and make formal statement.
The second key part in joint venture agreement sample is the purpose, scope and scales of operation. In the section, you may state: The purpose of the joint venture shall be to utilize the combined technological, management, operational and marketing strengths of the Parties within the approved scope of business of the Company to achieve good economic results and a return on investment satisfactory to the Parties; The scope of business of the Company shall be to ___; The Business Plan is attached as ____, The business plan may be expanded or reduced by the Board from time to time in light of market and other relevant conditions.
The last key part in joint venture agreement example is total investment and registered capital. In the section, you may include: The total amount of investment required by the Company is presently estimated by the Parties to be ___; The Company’s registered capital shall be___; Party A’s contribution to the registered capital of the Company shall be ___, representing a __(Party A equity share percentage) share of the registered capital of the Company. Party B’s contribution to the registered capital of the Company shall be __(Party B registered capital contribution), representing a __ (Party B equity share percentage) share of the registered capital of the Company.