Letter of Intent to Form Joint Venture
Set out the terms on which a joint venture enterprise will be established in this generic 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 is a generic template which is not country specific and can be used anywhere. For country-specific versions of this LOI, jump to the Letter of Intent Forms main page and find your country in the list.
Last Updated: 14-April-2016