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Thursday, 2 January 2020

JOINT VENTURE AGREEMENT (sample)


THIS JOINT VENTURE is made on this………………day of……………….20..  BETWEEN  ……………………an adult Tanzanian of P.O. Box………………… (hereinafter called the “first party/venturer”)  AND  …………………..an adult Tanzanian of P.O. Box…………………. (hereinafter called the “second party/venturer”)    WHEREAS the parties to this Agreement have agreed to carry on the business of………………….in joint venture under the name and style of………………..  AND WHEREAS the parties have agreed to execute this Joint Venture Agreement and to commence and carry on business in a joint venture on the following terms and conditions.

JOINT VENTURE AGREEMENT

THIS JOINT VENTURE is made on this………………day of……………….20..
BETWEEN
……………………an adult Tanzanian of P.O. Box………………… (hereinafter called the “first party/venturer”)
AND
…………………..an adult Tanzanian of P.O. Box…………………. (hereinafter called the “second party/venturer”)

WHEREAS the parties to this Agreement have agreed to carry on the business of………………….in joint venture under the name and style of………………..
AND WHEREAS the parties have agreed to execute this Joint Venture Agreement and to commence and carry on business in a joint venture on the following terms and conditions.



NOW THEREFORE THIS AGREEMENT WITNESSETH AS FOLLOWS.
1)     The name of the joint venture shall be……………….
2)     The Joint Venture shall exist for a period of five (5) years and shall commence from……….. The parties may renew the common venture by executing another Joint Venture Agreement. A party unwilling to renew the venture upon the lapse of the initial five (5) years shall give a two (2) month advance notice of that intention, prior to the expiration of the Agreement period.
3)     The main business of the Joint Venture shall be ………………and other allied businesses. The main business/venture shall involve a vehicle of make ………..The vehicle shall be jointly owned by both parties to this Agreement but for conveniences of legal ownership, it shall be registered in the name of one of the parties, namely……………… “the registered party”
4)     The registered party shall not have the power to deal with the vehicle in any manner that is inconsistent with the interest of the other party in the vehicle. It is therefore prohibited for the registered party to hire, mortgage or sell the vehicle without the express consent of the other party.
5)     Both parties will be working venturers and thus actively engaged in the day-to-day operations of the business.


6)     The parties have contributed towards the initial capital a sum of ………………..and ………………for the first and second party respectively.
7)     The net profits and losses of the Venture will be shared by the parties in the proportion to the capital contribution. Net profits will mean the gross profits earned in such year less the expenses of the business as recognized by accounting principles.
8)     All the tangible and intangible assets of the Venture including the goodwill, benefit of business licenses and permits, benefits of contracts entered, shall belong to the parties in the proportion of capital contributed by each party.
9)     The parties shall open two accounts. One account for operational requirements and the other for savings purposes. The operational account may be accessed by any of the two parties. The account for savings shall only be operated and accessed upon the written authorization of both parties
10) Parties are entitled to a periodical distribution of…………….percent of the net profit. The interval of the distribution/ payment is to be determined from time to time by the Parties.
11) This Agreement is not intended to create a Partnership and a party to the Agreement shall not have the authority to bind the other party in transactions with third parties unless the express consent of the other party has been secured.
12) On the death of any party and there is no legal representative willing or capable to take the place of the deceased party, the share of the deceased party may be purchased by the remaining party at a valuation to be made by an arbitrator.
13) A party desirous of prematurely terminating the joint venture shall give a two (2) month written notice of that intention to the other party. Unreasonable termination of the venture shall entitle the innocent party to fair compensation to offset the commercial inconvenience and loss resulting from the termination.
14) The premature termination of the Venture, unless resulting from death of one of the party shall be witnessed by a written resolution to that effect.
15) This Deed is executed in triplicate, one copy for each party and one copy for registration and custody under the Registration of Documents Act, Cap. 117. [Laws of Tanzania]
IN WITNESS WHEREOF the parties put their respective hands the day and year first above mentioned.

SIGNED AND DELIVERED by the     ]
withinnamed First Party in the       ]                      
 presence of……………………….PO      ]                                    1ST  PARTY/VENTURER
Box………………….…………………]

SIGNED AND DELIVERED by the     ]
withinnamed Second Party in the ]
presence of……………………………       ]                                     2nd PARTY/VENTURER
PO Box……………..       …………………] 

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