A letter joint venture contract is written by a company to another where both parties intend to form a joint venture firm. This letter serves as a guideline for the terms and conditions and is the skeletal structure on the basis of which a joint venture contract is formulated. Both parties have already loosely discussed the terms and this letter puts those terms on paper which can be referred to when the actual contract is formed.
Sample Letter Joint Venture Contract:
Unique Plastic Designs
211 Palm Boulevard, Texas
Manager, Containers for You,
San Antonio, Texas
Subject: Letter for Joint Venture Contract
Dear Mr Gilani,
This letter is a follow-up of the negotiations held between ourselves on March 19, 2011 in Dallas, where we had decided to formulate a joint venture contract. Please allow me to relate the main points of that meeting.
My company and yours had decided to set up a new company by the name of New Designs, with its principal office in Dallas, where both you and I will be investing $100,000 each. This company shall benefit from the experience and knowledge by our experts and I am sure your company will be contributing immensely for the success of this new firm and help it make a mark in the market.
The profits from the operation of New Designs shall be shared on a 50:50 basis between ourselves.
Although this letter is not binding, I hope you agree with the terms and conditions of the joint venture contract.
CEO, Unique Plastic Designs