A joint venture agreement defines the rights and obligations of the parties with respect to a joint venture. It explains who will contribute what, how decisions will be made and how benefits and commitments will be distributed. The most commonly used structures for a joint venture are as follows: since participants use historical pricing, estimation and pricing techniques as well as other proprietary information when preparing and submitting the offer, the agreement must take into account how confidential information is handled. The Agreement should also address the possibilities of redress available to participants in the event of misuse of confidential information. Depending on the nature of the business, the agreement will contain a number of other provisions, one of the main functions of the joint venture agreement of which is to explain the nature of the relationship between the joint ventures. The agreement should allow the opening of a bank account with a minimum opening balance for daily expenses. Payment claims, invoicing and accounting should be managed by a participant under a single reporting system. The parties should agree that there will be no distribution of profits until the final completion of the project. Most joint ventures will produce intellectual property that is of potential value to each of the parties to the joint venture. This can range from things such as customer lists or information about certain business opportunities, to software code rights or new technologies. Typically, a joint venture is a business agreement where by which two or more parties agree to pool their resources to accomplish a specific task.
The parties to a joint venture agree on common ownership, common returns and risks, and common governance. . . .