Joint venture (JV) agreements are detailed contracts that outline the collaboration of two or more parties that agree to pool their resources to achieve a common commercial goal. Each participant in the joint venture contributes assets, experience, and shares in the risks and profits by the provisions of the agreement. Joint ventures are very useful for pooling resources, accessing new markets, and sharing technological developments. A well-written JV agreement describes the scope and purpose of the joint venture, each party’s contributions and obligations, the governance structure, profit-sharing agreements, and dispute resolution procedures. By clearly identifying these characteristics, the agreement lays the groundwork for successful collaboration, ensuring that all parties have the same aims and expectations.

Joint ventures provide a strategic strategy to utilize synergies, increase capabilities, and achieve corporate goals that may be impossible for individual businesses working alone.