Joint Venture Agreement

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Joint Venture Agreement

Joint Venture Agreement

  • A joint venture agreement provides a company with expertise it may not have or may not be willing to invest in acquiring itself.
  • For example, if one company has a combustible material research lab that the venture requires, the company without the lab gains the benefit of an already established lag.
  • There is an element of risk in most joint ventures. Both joint-venture parties share in the risk, such as a financial investment.
  • Should the venture not become profitable, both parties can walk away from the deal losing less than if one company independently invests in the venture.


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