The joint venture is a contract by which a person grants others, who provide goods or services, a participation in the profits and losses of a commercial negotiation or of one or more commercial operations.
According to the above, it can be established:
- The joint venture is a bilateral or plurilateral contract where the partner and the associates intervene. The contract must be in writing. The contract is not subject to notarization or registration in the public trade registry. The joint venture lacks of: NAME, ADDRESS and LEGAL PERSONALITY The associate acts on his own behalf against third parties. There is no relationship between third parties and associates. The associate responds unlimitedly. The associates are liable up to the amount of their contributions, then then the losses that corresponding to the associates may not exceed the value of their contributions. Unless otherwise agreed for the distribution of profits, the amount of paid capital will be taken as the basis.The fact that an associate dies or is disabled does not imply the disappearance of the association.
The administration of the association can be done:
- By the partner (manager) By one or more partners (managers)
The manager or managers may have general or special powers to carry out the acts of the association and will render accounts in the terms established in the association contract.
The dissolution and liquidation of the joint venture, unless otherwise agreed, will be governed by the provisions established for the company in its collective name insofar as they do not contravene the provisions of the law.
Accounting aspects:
The association's accounting can be carried out:
- In the books of the associate (manager) In the books of the associates (managers) In the special books that will be available for the association.
