Drafting a Contractual Joint Venture Agreement
Joint venture arrangements enable companies to create a multitude of products and services that might have otherwise been too costly, difficult, or time-consuming to unilaterally undertake. A joint venture relationship typically involves unaffiliated entities joining forces for a specific business purpose. This practice note focuses solely on drafting a contractual joint venture (JV) agreement whereby the joint venture relationship is created and controlled by a written agreement entered into by the parties. This is in contrast to an entity joint venture relationship, such as a corporate, equity, or partnership JV, in which the parties form a new entity to carry out the business of the JV.