Sample Jv Agreement India
Finally, the clause to be discussed is a termination clause. The termination clause in the contracts is intended to define the conditions and circumstances under which a contract may be terminated. The reason for the inclusion of such a clause is to give a clear picture of the sustainability of the treaty. In this model agreement, the parties have agreed on the five conditions above, namely the date on which they can terminate their contacts, as well as a specific termination procedure. These conditions must be met by sending the other party a written notification 60 days before the effective date of termination and the denunciation may take place if another party becomes insolvent in the event of expropriation, nationalization or condemnation of all the party`s assets, in the case of a government policy that directly or indirectly prevents the implementation of an agreement. The names of the signatories of the members of the joint venture and their witnesses for validation/approval of the agreement. After the analysis of the joint venture type agreement, it can therefore be said that clauses are the soul of an agreement and that a joint venture is not an exception. The concept of joint venture is a common phenomenon in the courts of the United States of America and has its legal origin in the courts of the United States of America. It is a corporation or a company in the sense of a partnership that operates in a joint venture for mutual benefit.
It also refers to an association of individuals or companies that jointly assume a business entity from which each party contributes to the provision of assets and risks. “It requires a community of interest in the performance of the object, a right to direct and regulate policy in conjunction with it, and the obligation that can be changed by the agreement to participate in both profits and losses (Black`s LawDictionary, 6th edn., page 839).” According to Words and Phrasess Permanent Edn. “a joint venture is created by two parties to run a single business for profit.” (p. 117. 23). “A joint venture can take the form of a company in which two or more people or companies can unite. A joint venture has been defined as a company that has partnered with other individuals or companies as part of the enterprise within a specific company, often present in the oil, chemicals, electronics and nuclear energy sectors. (Black`s Law Dictionary, 6th Edn., 342). If your agreement has all of that, it would most likely be effective. Let`s move on to the planning phase of your joint venture.
As you can see, a joint venture agreement can be beneficial for your business or organization. Now that you know all the benefits, let`s take a look at the different types of joint venture agreements in which you can enter. The next one in that order is the confidentiality clause. Under the restrictive agreements under Section 27 of the Indian Contract Act, 1872, the confidentiality clause provides for the secrecy of certain conditions used in this agreement so that other persons or third parties cannot use the information for their benefit. In this model agreement, the confidentiality clause provides that any party may keep confidential the information that these persons referred to in this agreement acquire in connection with transactions under this agreement or in relation to the employees, business or business of another party, and may only use or disclose that information with the consent of the other party. The only thing to consider in the analysis of the confidentiality clause in an agreement is whether or not the trade restriction clause is, otherwise there is no problem. If it is established that one party, under the guise of the confidentiality clause, attempts to restrict the commercial freedom of another party, it objects to the provision of Section 27 of the Indian Contract Act, 1872.