Joint Venture Agreement

What is a joint venture agreement?

A joint venture agreement is a contractual agreement between two or more parties to undertake a specific business project or activity together. In a joint venture, each party typically contributes assets and shares risks. It's a way for companies to pool resources, share risks, and cooperate in sectors or territories where they might not choose—or be able—to act alone.

Need help drafting a joint venture agreement? Reach out to Inkling’s experienced team today.

Frequently Asked Questions

  • Structuring a joint venture agreement involves careful consideration of each party’s contribution, role, and expectations to ensure the relationship is beneficial to all involved.

    Some key elements typically found in a joint venture agreement include:

    • Contribution: details what each party is bringing to the table, whether that’s capital, assets, intellectual property, expertise, or other resources

    • Management and Control: defines how the joint venture agreement will be managed. This might detail the formation of a management committee, the appointment of directors, and the roles/responsibilities of each party.

    • Profit and Loss Distribution: describes how profits, losses, and liabilities will be shared between the parties.

    • Operational Protocols: may detail the day-to-day operations, including budgeting, reporting and other key processes.

    • Intellectual Property: specifies how intellectual property created or used within the joint venture agreement will be handled, both during the agreement and after its conclusion.

    • Termination and Exit: outlines the circumstances under which the joint venture agreement can be terminated and how assets and liabilities will be divided upon termination.

    Structuring a joint venture agreement can be complex. It is best to seek legal advice to ensure all your needs are satisfied and the agreement is legally binding.

  • Yes, joint venture agreements are legally binding documents. They are enforceable by law like any other contract.

    It’s normally a good idea seeking legal advice when preparing a joint venture agreement to ensure it’s legally binding.

  • We have specialist expertise and experience assisting small and medium businesses in drafting joint venture agreements. We can plan, draft, and finalise joint venture agreements suited to your needs.

    Get in touch today.

  • Yes, we have specialist experience in resolving disputes between joint venture partners. Most issues can be resolved through discussions or mediation. Sometimes, disputes need to be settled in court or arbitration. We can assist you with joint venture disputes and dispute resolution strategy.