A Joint Venture is neither a partnership nor a sole proprietorship. Joint Ventures are business entities or arrangements created by more than one party [two or more], engaging in shared ownership, returns, risks, and administration or control of the business.
When two or more parties have a long-term business commitment, a joint venture agreement can be drawn based on a particular project. To contribute and share expenses as well as revenues and mutually sharing both profits and losses, which can be determined on the period decided by involving parties. Therefore, starting a joint venture also means that the involved parties also share legal risks.
As per the Competition and Consumer Act 2010, a Joint Venture is a business activity carried on jointly by two or more persons, whether or not those persons are already in a partnership.
It can also be carried by body corporate formed by two or more persons for the sole purpose of allowing those persons to carry on a specific business activity or a project by pooling their resources using joint control or using their ownership of shares in capital.
The persons involved in the joint venture thus enter an agreement which essentially defines their contractual relationship that is not legally a partnership or trust.
This agreement is a contractual arrangement to realize profits by working together and utilizing each other’s strengths to point a business to success. However, there is also a considerable risk if things do not go the way they are meant to, which is why the parties should properly consider all legal and practical elements of a Joint Venture Agreement.
When it comes to joint ventures communication between the participants is very crucial. While the JV agreement is being drawn up, the way it is set up should be stated clearly; especially whether it can be ‘Unincorporated’ or ‘Incorporated’ as ‘Incorporated’ JV’s require the setting up of a separate company that owns the joint venture’s assets.
JV’s also include –
Joint Venture Agreement Lawyers for Commercial Law Lawyers Perth have experience and extensive knowledge to counsel and guide you in JVs and JV Agreements.
This includes:
And in any situation, if you need any legal counselling and guidance regarding Joint Ventures and Joint Venture Agreements, Please feel free to get in touch with Commercial Lawyers Perth to help you make the right decisions and organize a meeting catered to your particular circumstance.
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