Released on: September 10, 2008, 2:25 am

Press Release Author: Praveen Kumarii

Industry: Management

Press Release Summary: A Joint Venture Agreement is a document that sets out a type
of partnership agreement put together for some specific purpose. The agreement
spreads the risk attached to the project among the various parties to the agreement
as well as details the sharing in any of its success and profits.

Press Release Body: A Joint Venture Agreement is a document that sets out a type of
partnership agreement put together for some specific purpose. The agreement spreads
the risk attached to the project among the various parties to the agreement as well
as details the sharing in any of its success and profits. It also sets out the
profit as well as the risks to the agreement for each of the participating parties.

The joint venture agreement gives an element of control to the project since it
establishes the extent of the agreed to actions as well as setting the supervisory
protocols for the smooth functioning and efficient operations of the business
venture. In addition, the agreement bears in mind each party’s best intentions for
achieving the general business goals.

Usually, such a bargain will be made and entered into on a specified date between
the parties to the agreement. It shall set out the business purpose of the agreement
as well as define the terms of the agreement which may specify the abovementioned
starting date and shall continue till terminated, dissolved by law or ended by other
stated provisions. The joint venture agreement may further define the terms as they
are used in the agreement.

The obligations of the parties involved shall name who will be responsible for all
of the decisions and operations of the business as well as compensating them for
services rendered. It shall also state how the profits and losses shall be owed at
the end of each fiscal year.

The agreement shall also name the business participating in the joint venture that
will have complete, total and special influence to manage and control the business
for the purposes as stated in the agreement. Affiliates of the arrangement may take
part in rendering services on behalf of the joint venture. Also, parties to the
agreement as well as affiliates may have interests in businesses that do not form a
part of the relationship. The joint venture agreement shall also specify the persons
or persons who shall pay the expenses of the partnership.

Each of the parties to the agreement shall be indemnified by the other for losses,
judgments, liabilities, expenses as well as for amounts paid as completion of claims
sustained by the partnership. In case any of the parties suffers a loss but this is
not due to neglect or bad faith and that the course of action taken was in the best
interests of the joint venture, then none of the parties will be liable to pay the
other for such losses incurred. The arrangement may be dissolved in any of the
following instances:

• Bankruptcy, withdrawal removal or insolvency of either party
• Through sale or other disposition of all or most of the significant assets
• Mutually agreed to by the parties to the agreement

Furthermore, the joint venture shall keep adequate books and records of its place of
business giving a true and accurate picture of the business transactions. In case
any of the provisions of the agreement shall become invalid it would not affect the
outstanding provisions of the agreement. All notices that are required should be in
writing and will be deemed to have been given when deposited in the postal mail or
through certified mail or be addressed to the rightful address of the parties to the
agreement.

By using pre-defined joint venture agreement forms to enter into a project there are
not only substantial savings in time but also totality is offered in these documents
which can be tailor-made to suit individual needs. In addition, the language and
attributes of these documents adequately meets the necessary stipulation of a
legally binding document.

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