Saturday, July 11, 2009

Main Features of Joint Venture

The main features of a joint venture are as follows:

  1. Two or more person are needed to be engaged in the business
  2. There is an agreement to execute a particular venture or a project. 
  3. The joint venture business may not have a specific name and is considered part of each of the others main business
  4. The Joint-Venture is temporary nature. The agreement regarding the venture automatically stands terminated as soon as the venture is complete and the desired result is achieved. 
  5. The co-venturers share profit and loss in an agreed ratio that is stated in the contract. The profits and losses are to be shared equally if not agreed otherwise in the joint-venture contract.
  6. The co-venturers are free and legally able to continue with their own business unless agreed otherwise during the life of joint venture between them. For example, there might be certain non-compete agreements

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