Joint Venture Contract
The joint venture is made between ABC Corporation, and XYZ pvt limited on the date------------ and day ---------------.
1. Recitals
1.1 The ABC Corporation and XYZ pvt limited agree to undertake a joint venture for the purpose of manufacturing clothes and importing them to western countries.
1.2 Each joint venture will receive an equal share and interest from the business that is (“Proportionate Share”).
The consideration of the vicinity and resources and the receiving and adequacy is hereby acknowledged. By signing off this contract both the parties, hereby agree to the following provisions.
2. Background
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2.1 The purpose of forming this joint venture is to conduct all the important and relevant tasks directly or indirectly linked with the business. The contract also implies on any other activities which will be rendered important with the foregoing .
2.2 This contract does not show any consent on creating a partnership between the two parties. No provision in this contract makes the joint ventures as partners or agents of the others or declares any other relationship. Therefore, each party is solely responsible for the individual acts and decisions and can be held responsible for the omission of the other.
2.3 No joint venture has the authority to act in place of the other or incur any duty on the behalf of the other party.
2.4 Each joint venture in this contract has the right to claim against any loss, charges, expenses, obligations and damages done by the other joint venture as the result of any action or omission of the other apart from the assigned authority mentioned in this contract.
3. Administration Fees
3.1 For the administration of the joint venture the monthly fees of $-------------- will be paid. The annual budget of the administration will be -----------------. The first fee will be paid by the 5th day of the next month.
4. Profits
4.1 All the expenditure required for the operation of the joint venture will be equally paid by ABC Corporation and XYZ pvt limited. The profit obtained from this joint venture will be divided equally between the two joint ventures paid put on ---------- month and --------- date every year.
5. Sign off
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Reference
Mellon, K. (2014). Joint Venture Revealed. e-book: Kerby Mellon.
