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Types Of Jv Agreements

As a general rule, such cooperation is carried out only for exclusive and specific purposes between undertakings and therefore ceases to exist at the end of this project. In other words, these types of joint ventures are linked to time or to a particular project. In this type of joint venture, the transaction takes place between undertakings which operate in the same general group and which may use the products of the joint venture to sell to their own customers or create production which can be sold to the same group of customers. Managing a horizontal joint venture is usually complicated and often gives rise to litigation, as the alliance exists between partners active in the same sector. In addition, these types of joint ventures suffer from opportunistic behaviour between the partners, since they are part of the same general commercial activity. For such types of joint ventures, the benefits are shared equally by both parties. A financing agreement is a kind of joint venture agreement that involves a little more risk. If you get financing from a private party or business center, you can execute the business plan for which you may have initially run out of resources. For this type of joint venture, it is best to hire a business lawyer to ensure that your legal rights are properly protected. There are different types of joint ventures. How you set up a joint venture depends on what your company is trying to accomplish. .