A joint venture (JV) agreement is like a business partnership agreement where two or more companies join to make a deal that will be beneficial to both of them. There are many advantages of a joint venture agreement – it helps the companies to share their strengths, thereby benefiting each other, minimizing risks, thereby making fewer losses and improving competitive advantages in the market. It also financially helps the companies to pursue a project or deal together which they would not be able to do alone.
By making a JV, they can enter a new market and make their presence felt there. The management of the JV is either shared between both the companies or only one partner takes charge, while the other may supervise other important operations. A JV is usually a short-term agreement and so the term of the JV must be mentioned in the agreement. It must also lay down the roles and responsibilities of each party.
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Sample Joint Venture Agreement
Joint Venture Agreement
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