This model Joint Venture Agreement will allow the parties to agree, on a project-specific basis, their obligations, services and rewards within the Joint Venture created among them by the effect of this Model Joint Venture Agreement. It is not intended to create a legal entity or to be used to create a more permanent non-project specific legal association.
The Joint Venture´s action, capacities and internal decision making processes have been clearly structured.
One purpose of a model agreement such as this is to raise the awareness of the Members of the Joint Venture as to what should be in the Agreement to mitigate their individual risks and avoid disputes between themselves.
A second purpose is to provide the Members with a manageable agreement which establishes clear responsibilities and legal capacities to act. It is aimed to avoid disputes and deadlocks between the Members.
In countries where it is inappropriate to use the description «Joint Venture» for the type of project-specific association described above, the wording in the Joint Venture Agreement can be changed accordingly.
It must be remembered that it is the Joint Venture Members as the Joint Venture that will be contracting with the Client and therefore it is the Joint Venture Members together as the Joint Venture that will be the «Consultant» as defined in the «Client/Consultant Model Services Agreement» (the White Book), or any other form of Services Agreement.