In the case of an unregistered joint venture, all profits must be accounted for by the companies that signed the JV agreement. A joint venture agreement is legally binding in most jurisdictions and can be used in court to claim damages if one of the parties fails to comply with the terms of the contract. Unlike a partnership contract, a joint venture exists only until the deadline set out in the joint venture contract. A joint venture may lead to the creation of a new separate entity or may only be operated on the basis of an agreement between existing undertakings, without the creation of a new legal entity. The latter is called an unregistered joint venture. There are different types of joint venture agreements that you can conclude. They depend mainly on the objective of the Joint Undertaking and the objectives it is to achieve. In any event, a joint venture between two separate parties wishing to achieve the same objective for their own benefit would have to be agreed. Here are the different types of joint ventures: two or more companies form a joint venture if they wish to join forces for common purposes, each of which contributes to risk and return. It allows any business to grow without having to look for external financing. JVs are not recognized by the IRS, where the JV agreement determines how taxes are paid. As regards the key elements of a joint venture( but are not limited): a joint venture agreement should contain the names of the signatories, the terms and purpose of the agreement as well as all additional information on the project to be carried out. .