Joint venture agreements are used to facilitate projects between partners that are temporarily working together. These agreements outline the partners’ expectations and protect the partners’ individual businesses, as well as the working relationship.
Joint ventures do not create a separate business entity and are typically joined into when parties are engaged in a specific joint project. They are limited in time and scope, as the parties do not always do business together, and often have an expiration date that allows the parties to renew or refuse to renew the agreement.
Joint venture agreements are helpful because, often, the parties involved are putting forth different types of skills, assets, and in different quantities. Moreover, with joint ventures, parties work together to the extent agreed upon in the contract, so it is important to have a clear and concise written agreement describing the agreed upon terms and conditions.