A simple joint venture agreement is an agreement between two parties agreeing to work together for a common objective, according to Rocket Lawyer. The agreement outlines the terms of the new undertaking for both parties, allowing them to work harmoniously.
The details of the joint venture agreement include business objectives, the initial investment for each party, roles and responsibilities for each party, and profit- and loss-sharing terms, notes Rocket Lawyer. The agreement should also highlight the terms of termination in case of a conflict. A joint venture agreement serves the same purpose as a partnership deed but focuses on short-term projects. Having a joint venture agreement helps to increase profit and improve work efficiency.