06 67 JOINT VENTURE AGREEMENT

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

06-67 JOINT VENTURE AGREEMENT

[A joint venture is typically considered to be a general partnership formed for a purpose limited in time or scope. As such, its parties become jointly and severally liable as general partners for debts incurred by the venture or any joint venturer in behalf of the venture. It has been traditionally used in a wide range of appropriate situations. The legislative creation in the 1990's of limited liability companies, limited liability partnerships and limited liability limited partnerships, all of which provide substantial limits to the personal liabilities of the owners for entity debts, suggest that the use of the joint venture may be an unnecessary legal risk for its owners. As such, under current law, its use should be carefully scrutinized and limited in favor of the alternatives mentioned above.]

JOINT VENTURE AGREEMENT

THIS JOINT VENTURE AGREEMENT entered into this [day] day of [month, year], between [corporate name 1], an Arkansas corporation, herein referred to as [short corporate name 1], and [corporate name 2], an Arkansas corporation, herein referred to as [short corporate name 2].

WHEREAS, [short corporate name 1] now owns [property description], and the parties desire to form a joint venture for the purpose of [purpose of joint venture], and for owning, maintaining, operating and otherwise disposing of all or part of such property as the parties may agree.

NOW, THEREFORE, in consideration of the promises and mutual covenants of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, it is hereby agreed between the parties:

1. Formation of Joint Venture: The parties hereby form a joint venture (the Venture) upon the terms and conditions herein set forth.

2. Name of Venture: The name of the Venture shall be [joint venture name].

3. Purpose of Venture: The purpose of this Venture will be to [purpose of joint venture].

4. Interest in Venture: The respective interests of the parties as members of the Venture in and to the net profits and losses of the Venture shall be [percentage interest of each party].

5. Method of Entry Into the Joint Venture:

A. [corporate name 1], as the present owner of the property, agrees to sell [corporate name 2] a [percentage ownership being sold]% ownership in the equity for the sum of $[price]. In addition, [corporate name 2] agrees to arrange for the necessary interim financing to hold the property prior to construction and to be jointly liable along with [corporate name 1] to any interim mortgagee. [corporate name 1]

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