A Joint Venture is a form of business structure, where multiple individuals wish to collaborate together, with a view to completing a specific goal. A Joint Venture Agreement details the rights and duties of each individual party, throughout the collaboration venture.
For example, a Joint Venture arrangement can be utilized by an investor and a contractor to develop and sell a property. There are multiple parties (the investor who has money and the contractor who has the knowledge to build and develop properties). There is a specific goal (develop and sell the property), and each party is bringing their specific knowledge, and assets (money/equipment), with a view to achieving the specific goal.
Joint Venture Agreements are typically utilized where the parties involved wish to stay separate and apart as to assets, and income, both during and after the completion of the venture.
While Partnership Agreements tend to bind the partners to certain obligations as detailed in statute, the only way to bind a party of a Joint Venture is through the terms of the Contract. This gives the Joint Venture parties the right to determine exactly what duties and obligations they wish to agree to, without the worry of legislation imposing certain other obligations onto each party.
The preparation of a Joint Venture Agreement can be simple or complex, depending on your needs. Nichols Law can assist with the preparation and/or review of a Joint Venture Agreement.