Joint-Venture Agreement

A Joint Venture Agreement is a contract used to set up a business arrangement between two or more parties who agree to combine resources for a limited time to accomplish a particular project or goal.

Joint ventures are a way to enter markets through the partnering of commercial resources. Within joint ventures, equity positions are usually taken by the participants. Such holdings can vary substantially in size, although it is usually important to establish clear lines of management decision-making control in order to achieve success. A lesser form of participation, which may or may not involve equity participation, involves strategic alliances.

Partnership Agreement

A Partnership Agreement is an agreement between you and your partner(s) that sets out the duties and obligations of the partners to each other and to the partnership. It establishes the rights and responsibilities of general partners, and the rules of a for-profit partnership. As a general rule of thumbs, once operations are more established, a shareholder agreement will better dictate the terms of the relationship going forward.