Understand some of the basic Types of Joint Ventures
 
Understand the basic difference between Joint Venture and Partnership
 
Understand the basic difference between Joint Venture and Consignment
 
Drafting the Joint Venture agreement
 
Understand the Potential Issues And Challenges In Joint Venture
 
Accounting Treatment for Joint Venture

For those unfamiliar between Joint Venture and Partnership, tabulated below in summary some of the differences:

Joint Venture

Partnership

Limited to a specific venture.

Not limited to a specific venture.

Partners are called co-ventures.

Persons carrying on partnership business are called partners.

No specific Governing Act for joint venture.

Partnership firms are governed by the Partnership Act.

No common firm’s name in joint […]

 
This article discuss the major difference/distinction between consignment and joint venture
 
 

        Parties:

In consignment, the parties are the consignor and consignee whilst in a joint venture the parties are called co-ventures

          Relationship:

In consignment, it is principal and agent relationship whilst in a joint venture it is like a partnership

         Powers:

In consignment, the consignee is the […]

During the drafting of the agreement, the following aspects should at least be included:

Definitions ( like technical terms specific to the industry)
Identity of the partners
Purpose of the joint venture
Scope of the joint venture
Activities of the joint venture
Validity period of the agreement including time span of joint venture
Contribution of each partner
Responsibilities and obligations of each partner
Equity […]

Generally, we need to understand what might be the potential issues when setting up a joint venture partnership. This might includes the following:

Conflicts of interest if they are competitors
Unable to delineate areas of responsibility
Mistrust of each other
Fear of loss of know-how
Cultural barriers
Different business practises
Differing in ideas about pay systems and criteria of recruitments
Strategic needs of […]