The conclusion of a joint venture agreement (or shareholders` agreement) is very important and should not be seen as trivial. This document is not executed for the filing of a procedural law or for use by the State, but is constituted to establish an agreement between the parties by clauses that are binding in their character. Such an agreement should be drawn up precisely. Important aspects of this agreement are: to give a more concrete example, strategic joint ventures have helped many companies penetrate emerging markets that would otherwise be difficult to penetrate without the usefulness of local intelligence and links with local agents in the region. The prospect of another contractual agreement in your life can be very important to you. That`s a lot of small entrepreneurs who ultimately decide that a strategic alliance is better suited to their goals and, frankly, bypasses a legal tangle they`d rather live without. Their legal characteristics are sufficiently complete with the business and obligations they already have. Creating a joint venture can be a challenge, but if done right, it can be worth it. It can take your business in a positive direction and offer opportunities through higher revenue and reputation. Learn more about the pros and cons of joint ventures. Unlike mergers and acquisitions, strategic joint ventures do not have to be lasting partnerships. In addition, both companies retain their independence and identity as sole proprietorships, allowing each company to pursue business models outside the partnership mandate. The goal of the joint venture is to pool their strengths and pool their resources to create a competitive advantage while minimizing risk.
When concluding the contract, the parties should indicate the purpose, objectives and limits of the undertaking . . .