A legal joint venture contract is a joint venture agreement between two parties which is legally binding. In a joint venture contract, two or companies come together to invest a sum of money to create a new company which uses their knowledge and brand name to make a position in the market. Consequently, the two companies share the profits from the joint venture company is a previously fixed ratio.
Sample Legal Joint Venture Contract:
This joint venture contract becomes effective on June 29, 2011 and is made by and between the companies Rainbow Textiles and Creative Textiles, where both the parties agree to set up a joint venture company, its principal office being in Cairo Egypt.
As per the joint venture contract, the following terms and conditions are legally binding and both parties need has to discuss with one another and get the approval of both parties, if one plans to terminate the contract.
Terms and conditions:
- The name of the joint venture firm is Textiles for All which shall be set up after an initial investment of $50,000 by Rainbow Textiles and $50,000 by Creative Textiles.
- Revenues from the business operation of Textiles for All shall be equally shared by both Rainbow Textiles and Creative Textiles.
- Both the companies shall be responsible for setting up the joint venture firm and for the operations and agree to ensure that the best possible help shall be given to the firm.
The undersigned understand and agree to the above terms and conditions.
Signature: Gary Onus
Designation: CEO, Rainbow Textiles
Signature: Rahim Ahmed
Designation: CEO, Creative Textiles