...previously we shared 5 benefits of a Joint Venture .Today we will talk on the essentials of an agreement for a JV.

A Joint Venture is usually created through the process of incorporating a new company with the partners as shareholders.

Thus,it is crucial to set out the terms and conditions to prevent misunderstanding, as it is essential to have an agreement (a Shareholders Agreement and Joint Ventures Agreement).

A Joint Venture should have the following in its Agreement:

1)Objective of the JV.
2)Financial Contribution from each party.
3)Obligations of each party: assets, labour
4)Duration of the JV
5)Management and Control
6)Sharing of liabilities-profit and losses.
7)Dispute Resolution
Ownership of Intellectual Property created by the JV
9)Confidentiality
10)Location of the JV
11)Exit Mode/Strategy



...stephenlegalblog