The incentive agreement between the parties to a joint venture without a legal personality is structured most years on the basis of the contributions of their respective partners to the joint venture. Similarly, each partner is responsible for debt and liabilities on the basis of the share of its contributions. An attractive advantage for a joint venture without legal personality is that the joint venture, without its own legal personality, can constitute a short-term agreement between the parties, unlike a registered joint venture, usually structured in the longer term between the parties to achieve the objectives of the registered joint venture. In the case of cross-border joint ventures as well, it is essential that the joint venture agreement establish the rules and jurisdictional laws that govern the joint venture in the event of a dispute. Contracting parties to a joint venture under different legal systems should be more careful in choosing the appropriate jurisdiction. How do I get the purchase price in the case of a joint venture agreement? A joint enterprise agreement is a final agreement by which the joint venture is formed between the parties to the proposed joint venture. A joint enterprise agreement should set out the contributions, expectations, obligations, rights and obligations of all parties involved in the proposed joint venture. In addition, the joint venture agreement must be fully developed and define the obligations of all parties involved. One of the key elements of joint enterprise agreements is the mechanism for distributing profits and liabilities between the parties to the joint venture. The agreement should also be structured in a precise manner to take into account the intention of the parties to minimize the risk of disputes arising from or related to the joint enterprise agreement. Joint ventures without legal personality are more often referred to as contractual joint ventures. The main difference between a registered joint venture and a non-match joint venture is that, in the case of a joint venture without its own legal personality, there is no legal entity of its own. A non-EU joint venture is made up of an agreement, for example.
B a joint enterprise agreement, a partnership or cooperation agreement. The parties to a joint venture without legal personality fulfil and fulfil their respective missions, obligations and obligations within the framework of the joint venture, in accordance with the conditions set out in the relevant agreement. There is never a guarantee of success in the economy and, in some cases, one or more parties to a joint venture may find that their business objectives and interests have changed from the original objectives and scope of the joint venture. Parties should consider including exit strategies in the joint enterprise agreement. Exit strategy provisions generally help parties to a joint venture to terminate the joint venture in a predictable and amicable manner. Common exit strategies include liquidation, put and call and the right to refuse in the event of a registered joint venture. The inclusion of an exit strategy helps parties not to be forced to remain at an impasse. 2. Transfer price – market value of free land at the time of the agreement The joint enterprise agreement should also include the respective contributions of the parties to the joint venture, since their respective contributions generally form the basis for the distribution of shares and the distribution of profits between the parties to the joint venture. It is essential that the parties agree on the sharing of profits and liabilities and, subsequently, such mutual understanding should be documented in the joint enterprise agreement. Parties should consider appointing a legal expert to have the parties to a proposed joint venture referred to interim diligence to avoid future setbacks.