Contractual Joint Venture Agreement
Our Joint Venture Agreements are an extensively used part of our Corporate portfolio of templates but have not perhaps received too much attention as they are already largely user friendly documents. However as with all our templates, we refresh and modernise them periodically to ensure they follow best commercial and legal practice. In light of this we have this month looked at the commercial arrangement outlined in our Contractual Joint Venture Agreement and made several additions and improvements to assist customers.
A Contractual Joint Venture Agreement is for use by two parties wishing to carry out a joint enterprise, where the parties want a looser commercial arrangement than the expense and formality of setting up a separate joint venture company. This type of joint venture arrangement is similar to a collaboration or cooperation agreement. It is useful where the proposed project is finite in duration, for example, a joint marketing campaign, the redevelopment of a property, or product development. It is however designed not to be sector specific and as a general agreement, can be used and adapted by parties wishing to form most types of contractual JV arrangement.
The template has been updated using more extensive definitions and provides greater clarity as regards the roles of each party within the Project and the resources they will provide to the Project. The template also includes a newly added GDPR compliant data protection clause and force majeure clause. It provides for the appointment of a Management Committee, with representatives from each of the two parties, and then for the co-opting of a Project Manager to manage and run the Project on a day to day basis.
This template forms part of our agreements related to the starting up of a range of different business vehicles.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.