A Joint Venture agreement provides the framework for the parties involved to declare the kind of business venture that they are undertaking together.
Signing a JV doesn’t automatically imply that you are merging or that one of you is acquiring the other, but that the parties want to provide for the terms of a common project and how each of them will contribute in resources or cash.
Let’s talk about a joint venture or what the insiders call a JV. This is a document where the parties get together and they declare the kind of business, the kind of venture that they want to undertake together.
Now it doesn’t mean that you have to get married or that you have to merge or acquire one another, this is really when the parties want to get together for one specific project. It could be locally, could be internationally, but the parties will figure out how they each want to contribute either in resources or in cash.