Joint Venture Agreement is a regulatory or business agreement between two or more parties to collect or gather the resources they have in order to work and complete a particular job. The job can be certain projects or businesses that involve more than one party only. When all parties agree on Joint Venture Agreement, so they agreed to take responsibility for all the profits, disadvantages, and all costs associated with the business or job.
You may use Joint Venture Agreement if you and your partners are having a plan to do such collaboration in specific job. Then when all parties have agreed with the terms, rules, and everything listed on the agreement, so all participants could be responsible with the rights and obligations.
You are in need to use Joint Venture Agreement template if: you are planning to do a mutual relationship with third party whether it be individual or company and cooperate for business affairs.
The benefit you will get by using Joint Venture Agreement template is you will be easier to get the latest news about the business, expand the network, your businesses companies name are recognized by other companies, and even increasing production capability than you just run a business without cooperation with other parties. Usually, the sides have an equal portion of the work so that the two parties are equally enjoying the profits evenly. But it is also applicable when a business experiencing loss as well.
Another thing you need to know to use the Joint Venture Agreement template is the continuity of your business will be more objective and realistic due to it judged by from more than one party and is done by many parties according to each party’s portion. In addition you can also see how the contributions and the feed back of each party who participating in the Joint Venture Agreement. Other advantages are their respective roles, the rights and obligations of the parties have stated clearly so when the business losses, the number can be divided equally throughout the joint venture participants. Joint Venture Agreement is almost the same to the concept of partnership but this cooperation has a certain period of time. Then when the period of the agreement validity is done, the cooperation was also end.
You can download and use this Joint Venture Agreement sample below as your reference for creating your own agreement.