Benefits of using legal contract kits

Joint Venture Agreement (JV)

These are ideal for use when two or more parties plan to work together on a project, usually with the goal of sharing an end profit.  A Joint Venture Agreement records the terms of the arrangement.

A JV is ideal for situations where parties agree to work together towards a common goal, with all parties contributing time, effort, resources or skills to the arrangement. 

joint venture agreement
There can be as many parties involved in a Joint Venture as you like. So having a written legal agreement in place is essential for all involved to understand the terms of the arrangement.

It is similar to a partnership – but generally on a shorter term, project only basis.  If the parties are not desirous of entering into a more permanent long term partnership agreement, a JV is an attractive alternative.  It enables the parties to work together, while not being joined in a more permanent business structure.

A JV agreement can be used for just about anything – usually side-projects, extensions or other minor collaborations between otherwise independent parties.

There is no limit as to how many parties can be a part of a JV.   Generally, the agreement exists between any party who is willing to participate.  Some projects need multiple people or organisations, with varying roles and levels of participation.

Depending on the nature of the work involved,the agreement must state;

  • the nature of the business involved,
  • the identity of all of the parties,
  • the length of the project,
  • how profits are to be divided,
  • how the arrangement will dissolve and any other pertinent matters. 

A properly formed document will allow all parties to understand exactly what their obligations are during and after the project, as well as the rewards for participation. 

morePutting your arrangement in writing is a good idea.  It allows you to worktogether much more easily because everyone will be certain of their duty to theother parties and unexpected problems or misunderstandings can be reduced