A Joint Venture is generally understood as a collaboration in the technical and/or financial aspects, and either in the form of projects, take-overs, or alliances between existing companies. There are instances where some companies, both big or small in size, consider collaborating on projects, where they share their resources, and at the same time preserve their individual identities and interests. Such a joint venture or collaboration provides businesses with a push to grow faster, and at the same time increase their productivity, efficiency, and the ability to generate greater profits. Moreover, it also provides the company with an opportunity to gain access to the new markets and distribution networks, increased capacity. Further, having a partner company to share the risks and costs (i.e. liability), and having an access to better resources, including specialized staff, technology, and finance are some other advantages of a Joint venture. The purpose of the Joint Venture Agreement is primarily to straighten out and clarify the relationship of the parties in these situations. Such an agreement is binding by law and lays down certain essential details such as details about profit sharing, operations, and the areas of cooperation and divergence. At IPLF, our team of professionals is well versed with all factual and legal scenarios that are primarily required to engage in drafting a sound Joint Venture Agreement.
Firstly, the most important step is to understand the requirements of the contracting parties, including companies that collect the resources and combine for projects that they intend to do.
Pursuant to this, a detailed discussion occurs amongst the companies that want to participate in the venture, in order to finalize the terms of the contract.
After a detailed discussion between the parties, our experts would draft the contract and give that contract to the clients for their reviews. Once the clients approve all the details, the Joint Venture Agreement is finalized.
