Are you planning a joint venture? Before you draw up a formal agreement, make sure all the parties have the same understanding of the terms of agreement by putting them down in writing in this Letter of Intent to Form Joint Venture
- The Letter of Intent summarizes the discussions between the parties with respect to the general structure of the venture corporation and the rights and obligations of the co-venturers.
- The co-venturers will incorporate a new company solely to carry on the business of the joint venture.
- The company will be managed by a board of directors consisting of nominees of each of the co-venturers.
- Shareholder equity in the venture corporation will be apportioned on the same ratio as the investment made by each of the co-venturers in the joint venture.
- The letter of intent itself is not legally binding, but rather it is a means of ensuring that both parties have the same understanding of the provisions before executing a formal, final and legally binding agreement.
This Letter of Intent to Form Joint Venture
is provided in MS Word format and is fully editable to meet your needs. This is a generic template which is not specific to any country or region.