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A letter of intent for a joint venture (JV) carried out through a newly formed LLC with two members, one of which owns a majority interest in the LLC, and the other a minority interest. This Standard Document may also be referred to as a memorandum of understanding or written in the form of a term sheet.
It is very important to ensure you have a joint venture agreement that clearly states the intent of the parties to enter into a joint venture and that the joint venture is being formed for a specific purpose and limited duration.
The shareholders' agreement and articles of association are key to the success of a joint venture. The shareholders' agreement outlines the relationship between the shareholders, covering topics such as: the object and scope of the venture.
An agreement (written or oral) between the parties manifesting their intent to associate as joint venturers. Mutual contributions by the parties to the joint venture. Some degree of joint control over the single enterprise or project. A mechanism or provision for the sharing of profits or losses.
The documents required for creating a JV can broadly be classified into three categories: Memorandum of Undertaking (MoU) or Letter of Intent (LoI) Definitive Agreements (depending upon the chosen structure) Other Agreements (such as Technology transfer agreements/BTA etc.)
PAN Cards: PAN cards of all parties involved in the joint venture. Bank Details: Bank account details of all parties, including cancelled cheques. Memorandum of Association: A document that outlines the purpose and objectives of the joint venture, as well as the rights and responsibilities of each party.
A Joint Venture (JV) Agreement is a contract between at least two business entities or individuals entering into a temporary business relationship. By joining forces, the parties hope to achieve a mutual goal.
This Letter of Intent is used to set objectives and define the most important issues between the Parties prior to the signing of a Joint Venture Contract. It also serves to assess the interest of the Parties to reach agreement and to take account of developments that have taken place during negotiations.