What is a joint venture agreement?

A joint venture agreement is a contract between two or more parties to create a new, separate legal entity. It is a common business structure, and one that is frequently used in the construction industry. In South Dakota, joint ventures are regulated by state laws and require filing with the Secretary of State. A joint venture agreement establishes the structure of the venture and allows each party to benefit from the joint venture in terms of profits, losses, and management. It outlines the contributions each party is expected to make, such as capital investments, personnel, space, services, and supplies. The agreement also establishes the goals of the joint venture, as well as the responsibilities and duties of each partner. The agreement must also include dispute-resolution clauses that provide a means of addressing disagreements without having to go to court. These clauses may involve negotiations, arbitration, or mediation, depending on the circumstances. The joint venture agreement should also include a timeline for the venture and any terms of dissolution, such as the criteria for ending the venture early. All joint venture agreements should be reviewed by thought by an attorney to make sure that all legal requirements are met.

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What is a joint venture agreement?

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