Purpose Clause
(Joint Venture Agreement)

Summary

This purpose clause may be used in a limited liability company operating agreement of a joint venture that owns real estate to authorize and limit the action of the joint venture to those approved of by the members. This clause includes practical guidance, alternate clause and drafting notes. The capitalized terms and section references used in this clause should be conformed to the relevant real estate joint venture agreement. See Joint Venture Agreement for additional clauses and definitions to be contained in a joint venture agreement. For a discussion of the purpose clause in a real estate joint venture agreement and other key provisions see Real Estate Joint Ventures for Commercial Real Estate Development.