The agreement usually contains a list of the different types of decisions that specify (for each) what types of authorizations are needed. One of the most important tasks of the joint venture agreement is to explain the nature of the relationship between the joint ventures. A joint venture is an agreement between two or more parties with respect to the joint completion of a business project or business activity. The agreement formalizes the agreement reached by the trading partners. In the absence of an agreement, the parties to the joint venture risk making commercial disputes if they ignore ambiguities as to what has been agreed or how to resolve disputes. Pooling forces to create a joint venture (JV) is not new, but the real trick is to do so so that each partner is protected so that both parties are free to put their creative footing forward. I`m talking about the « Captain Planet » levels of teamwork that can only come if all parties feel like they`re in a safe space to build an empire. However, most joint ventures are longer-term commercial cooperations, with some financial or temporal obligation, with a detailed agreement necessary to protect the interests of the parties. For these joint ventures, we always recommend a lawyer contribution for the development of the agreement. In the absence of a written agreement, the Tribunal will impose conditions on the basis of its interpretation of the parties` intent.
If there is no evidence of what the parties intend to do, the court will impose conditions that it deems fair. There is no defined legal structure for a joint venture. This means that your business collaboration can take the most appropriate form for your project. A joint venture can be either: c) The capital contribution clause: this clause contains the capital that each co-owned so much to enable the joint venture to achieve the appropriate objective. When a joint IP production company is created, the agreement must reflect the agreement between the parties on ownership of the new intellectual property. The joint enterprise agreement could, for example, say that, depending on the type of enterprise, the agreement will contain a number of other provisions, including: the methodology applied is doctrinal through analytical research. The researcher analyzed existing laws and regulations regarding joint ventures in India. The researcher analyzed various documents that reflect the scope of the company through the association protocol, the association`s articles and the joint venture agreement on the website of the Ministry of Corporate Affairs. Confidentiality or confidentiality clauses may be included in a joint enterprise agreement. Since the parties to a joint venture pool resources and, in some cases, give the other party access to confidential information about their activities, it is recommended that a confidentiality clause be put in place providing for penalties for infringement.
Legal advice should be given that confidential information cannot be disclosed to third parties and that the other party must be informed in the event of a breach of confidentiality. The confidentiality clause should be declared as the survival of the termination of the joint venture, so that the parties are required to continue to protect confidential information, even after the termination of the joint venture. If you do not have a joint venture agreement, the law can decide how risks and liability are shared. The risk is that the law will work differently than you have in mind. A profit-sharing agreement establishes the relationship between the profits and losses that the parties pay. Since a joint venture agreement can manage the distribution of profits and losses between the parties, you generally do not need a separate incentive agreement. If you opt for a separate incentive agreement, it is essential that the terms comply with the joint venture agreement to avoid confusion and litigation.