Has Joint Venture Agreement

Most joint ventures are registered, although some, such as in the oil and gas industry, are « unregistered » joint ventures imitating a business unit. If two or more people have come together to form a temporary partnership to carry out a particular project, such a partnership can also be called a joint venture in which the parties are « joint ventures ». A partnership usually concerns a single legal person owned by two or more persons, while a joint venture agreement covers a short-term project between several parties. The terms « joint venture agreement » and « partnership agreement » are sometimes mixed, but do not refer to the same thing. A joint venture agreement is legally binding in most jurisdictions and can be used in court to claim damages if one of the parties fails to comply with the terms of the contract. Frequent use of JV involves working with a local company to enter a foreign market. A company wishing to expand its distribution network to new countries can reasonably enter into a JV agreement for the supply of products to a local company, thus taking advantage of an existing distribution network. Some countries also have restrictions for foreigners entering their market, so a joint venture with a local unit is almost the only way to do business in the country.

Comments are closed.