If the joint venture is not incorporated, it is also important to define which partner Eader will play in the joint venture, what exactly this means and to what extent the leader is responsible for the actions in this regard vis-à-vis the other partners of the joint venture. As a general rule, the scope of the leader`s responsibility to the other partners of the joint venture is limited. Neither party may borrow money or enter into credit contracts on behalf of the other party. In the event that [JointVenture.Name] needs additional capital for commercial purposes, both parties contribute in the same way or authorize written borrowing financing. When one party injects capital beyond the contributions of the other party, the excess capital is considered a loan and does not affect the same ownership and shares of the joint venture of both parties. The two parties present themselves as a joint venture for the construction projects to be carried out and carried out. This clause clarifies the tendering procedures for a project in simple terms. Parties agree to exchange information and resources (details can be set in a calendar). Negotiations are led by the project manager. As a general rule, any offer would be signed by authorized representatives of each party and derogations from an agreed offer can only be made with the agreement of the board of directors.
Note that the contracting parties agree, in paragraph 7.7 above, that each of them is jointly responsible for an offer to a customer (see note in paragraph 4.3 above) and that the contract cannot be terminated as long as an offer is “live”. Finally, particularly in a 50/50 joint venture, it is extremely important to include provisions to avoid deadlock and to find a way to find a solution in the event of a deadlock. These include the present Joint Enterprise Agreement for Construction, which lays the foundation for cooperation between the parties to the joint venture. It includes general tasks, administrative structure, principles of joint tendering, allocation of work under paid contracts to the joint venture, as well as financial arrangements and liability issues. Where the parties have duly registered their joint venture, whether through a joint enterprise agreement or a shareholder agreement, the simplest means of recourse based on that agreement is, in almost all cases, the simplest way.