{"id":7357,"date":"2020-07-17T17:33:42","date_gmt":"2020-07-17T17:33:42","guid":{"rendered":"https:\/\/diamondlaw.ca\/?p=7357"},"modified":"2022-01-05T07:37:31","modified_gmt":"2022-01-05T07:37:31","slug":"key-considerations-joint-venture-agreements","status":"publish","type":"post","link":"https:\/\/diamondlaw.ca\/key-considerations-joint-venture-agreements\/","title":{"rendered":"Key Considerations For Joint Venture Agreements"},"content":{"rendered":"

Whenever you enter into a financial or business agreement<\/a> with someone it is extremely important to outline the terms. Doing so in advance will avoid misunderstandings and make it far less likely you will have problems in the future. Far too many people fail to do this and end up enduring lengthy and expensive legal wrangles, as a result.<\/span><\/p>\n

This is a shame because it is not difficult to have a Joint Venture Agreement drawn up. Read on to find out what they are, how they should be drawn up and how you can benefit from using them.<\/span><\/p>\n

Basics of Joint Venture Agreements<\/span><\/h2>\n

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First the definition. A<\/span> <\/span>Joint Venture Agreement<\/span><\/a> is any contractual agreement made between two or more parties to manage a particular business venture, undertaking, transaction or project.<\/span><\/p>\n

Difference Between Joint Venture and Partnership<\/span><\/h2>\n

It is important to understand that a joint venture agreement is not the same as a business partnership. Joint venture agreements are set up to cover a particular business transaction only.<\/span><\/p>\n

With joint ventures, the contracting parties are treated as separate legal entities. Each of them continues with their respective business operations. They, therefore, each retain ownership of their property.<\/span><\/p>\n

Whereas, with a partnership, the two parties agree to share in the profits generated, as well as bear the burden of any losses. Usually, this partnership continues indefinitely and covers all and any business-related work they do together. It, therefore, covers multiple projects, ventures, and undertakings.<\/span><\/p>\n

Purpose of Joint Venture Agreements<\/span><\/h2>\n

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The main purposes of Joint Venture Agreements are to facilitate:<\/span><\/p>\n