Section 17.2 requires a contracting party to do everything in its power to obtain (at its own expense) a guarantee for the parent company when a customer requires it. These guarantees may be sought when a contracting party does not have a significant business history and/or appears to cover the means to execute a contract claim. A compensation agreement may be necessary when parent companies are involved A joint venture agreement is a commercial contract between two or more parties who have decided to develop a business to complete a particular project for a specified period of time. The agreement outlines the rights and responsibilities of members as well as other aspects of the joint venture. A joint enterprise agreement, like any other legal document, must be carefully developed. Before the agreement is drawn up, both parties should assess potential problems so that they can be corrected in the treaty. Because of critical thinking about potential problems, you can avoid costly joint venture litigation. Bank accounts are opened in the name of the joint venture, subject to the agreement of the board of directors, which sets instructions for the operation of these accounts, and the terms of the signing of all payments to the joint venture are paid into the bank accounts. The entire joint venture contract is governed by the laws of the state [JointVenture.State]. If you`ve decided that working with another company to compete in today`s thriving construction industry is a smart step, you may be ready to design your joint venture contract. In this article, we inform you of the important elements of a joint venture agreement to ensure that your joint venture objectives are met satisfactorily. Full business and accounting documents must be kept and kept at all times at the joint venture`s office.
All recordings [JointVenture.Name] must be accessible at all times to each party and its authorized representatives. Both parties agreed to hire an independent agency to conduct a full audit of [JointVenture.Name` records each year. Tasks. The partners of the joint venture will accept responsibility for their own share of the work, although they both register as the main contractors in the contract awarded, that they are jointly responsible to the employer in the event of a problem. However, the responsibility is then distributed in accordance with the agreement of the joint venture. Note in particular item 24.8 (Competition Act). In certain circumstances (such as where the parties are large and do exercise monopoly control over a market in question), a joint venture may constitute an anti-competitive practice. In the event of a risk, the parties would be well advised to refer the agreement to the Director General of Fair Trade.
Often, the Director General will authorize an agreement provided that the terms of the agreement are made public. However, the Director General will often agree to protect the economically sensitive conditions of an agreement (or a full agreement) at the request of a party. This clause requires both parties to make reasonable efforts to implement the Director General in order to protect the economically sensitive aspects of the agreement (for example). B working capital). A decision on a possible reference should not be made without specialized legal advice. Both parties agree to preserve the same shares of [JointVenture.Name], including tangible assets, profits and liabilities related to the joint venture.