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. An example of a joint venture in Malaysia is the creation of Mazda Malaysia Sdn Bhd. This SPV was concluded by a joint enterprise agreement between Mazda Motor Corporation and Bermaz Motor Sdn Bhd on September 11, 2012. The main objective of the joint venture was to strengthen Mazda`s local assembly and manufacturing operations in Malaysia. Parties to a joint venture generally view their assets as a contribution to the joint venture to help the joint venture achieve its objective. In addition, most joint ventures involve the development of a product by the joint venture, which may have value for each party to the joint venture. A detailed and precise clause defining the respective ownership of this intellectual property is essential to the protection of the rights of all parties to the joint venture. This concept also applies to the extent that the parties can use intellectual property outside the joint venture. Given that the joint enterprise agreement is an essential document that it must have when setting up a joint venture, it will probably have many advantages, right? The answer is yes, there are many advantages to defining a concrete model for a common enterprise agreement that we will discuss now. If you learn these benefits, you can make an informed decision about whether you want to make one for your next joint venture.
A partnership usually includes an individual company owned by two or more people, while a joint venture agreement covers a short-term project between several parties. The terms “joint venture” and “partnership agreements” are sometimes mixed, but do not relate to the same thing. The popularity of joint ventures has increased in recent years, with parties having a number of advantages available to a joint venture, including risk and cost sharing, access to new markets and strategic conflicts against competition.