Business Agreements

Contribution And Formation Agreement

May 2, 2013 by agri in Business Agreements with 0 Comments
The contribution and formation agreement is entered into between two companies that wish to start a joint venture company. The agreement comes into existence on account of formation of new business by contribution of finance in the company. The agreement provides details of percentage of contribution of each company along with the terms and conditions for the formation of the company.

The agreement provides for clauses that will be fulfilled by both the companies in order to bring the new company into existence. The terms of the agreement include representations and warranties provided by both the company for contribution. It also specifies the terms that govern the joint venture when there is breach of any of the covenants earlier agreed upon by both the parties to the agreement. Other things that are covered in the agreement are the terms for termination of the contribution made by each company and subsequent treatment of financials of both the companies.



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