The duration of the
joint venture agreement may coincide so as to end with the termination of the project; however, in some cases, the venturers may prefer to set a different term, so as to have enough time to carry out reporting and assessment activities. In any case, an early termination clause is always desirable, but the venturers need to care- f u l l y e v a l u a t e w h e t h e r a t e r m i n a t i o n w i t h o u t c a u s e w i l l n o t jeopardize the success of the joint venture itself, and be too risky for both parties.
The venturers also should evaluate possible limitations on their contractual freedom. For instance, the parties can agree upon an exclusivity clause as well as a non-compete clause.
In some cases, especially when more than two venturers are part of a contractual joint venture, it could be useful to appoint a manage- ment committee to manage the project. The committee should be in charge of the relationship between the venturers, and between the venturers and third parties. The operative aspects of management also may be entrusted to a project leader.
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