B.

TECH IN MECHANICAL ENGINEERING

PROJECT WORK TITLED

JOINT VENTURES AND COLLABORATION AGREEMENTS

IN THE COURSE OF
LAW FOR ENGINEERS

UNDER THE GUIDANCE OF

PROF. DHANYA MAHESH

SUBMITTED BY
Vatsal Panchal (13BME069)
Dhruv Patel (13BME075)
Karna Patel (13BME080)
Mrudang Patel (13BME081)
Rudrik Patel (13BME084)
Sanket Patel (13BME085)
Shail Patel (13BME086)

Contents

Chapter 1: Introduction
1.1: Conceptual framework
1.2: Need for Joint Ventures and Collaboration Agreements
1.3: Statement of problem
1.4: Literature review
1.5: Objectives
1.6: Hypothesis
1.7: Research questions
1.8: Scope of study
1.9: Research Methodology

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CHAPTER 1
INTRODUCTION
1.1 Conceptual framework:
The Joint Venture is by far the most powerful business concept ever conceived. The
ability for two or more people to pool their resources together (money, time, skills, etc)
to achieve a greater goal, has been the hallmark of the worlds most successful
companies and business ventures. The joint ventures application to real estate is
absolutely natural and has allowed hundreds of thousands (if not millions) of people to
accelerate and multiply their results. Two or more people with a common goal (typically
financial) get together and offer each other their resources. One partner may offer their
time and services, whereas the other may front the money for the transaction. Since the
active partner (time and service) may not have the money, and the investing partner (the
source of financing) may not have the time or expertise, both parties are required to
successfully bring a transaction together. An agreement between the two partners is
formed. The nature of this agreement is truly mutually beneficial to both parties and huge
rewards can be realized.
The Benefits on going with Joint Venture are:
For Investing Partners
Higher ROI
Increased Investment Possibilities
Passive Income
No Time Commitment
Opportunity to Diversify Portfolio
Increased Net Worth
Minimized Risk Due to Investment Nature
Proven Systems and Clear Cut Agreements
Opens the Door to Otherwise Unavailable Investments
For Active Partners
No Money Required
Infinitely Repeatable
Increased Net Worth
Minimized Risk Due to Investment Nature
Unlimited Purchase Power
Monthly Cash Flow
Leverage Your Time
Proven Systems and Clear Cut Agreements
Opens the Door to Otherwise Unavailable Investments
Collaboration
agreements are
agreements
and
actions
made
by
consenting organizations to share resources to accomplish a mutual goal. Collaborative
partnerships rely on participation by at least two parties who agree to share resources,
such as finances, knowledge, and people. Organizations in a collaborative partnership
share common goals. The essence of collaborative partnership is for all parties to
mutually benefit from working together. There are instances where collaborative
partnerships develop between those in different fields to supplement one anothers
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expertise. The relationships between collaborative partners can lead to long term
partnerships that rely on one another.
The main premises can be summarize underpinning this agreement paradigm as follows:
Parties from the public sector, from the market and from civil society have an
interest in sustainable development.
A constructive dialogue among these interests can be convened in a setting that
excludes hierarchy and authority.
Dialogue can produce a shared normative belief that provides a value-based
rationale for collaborative action.
Collaborative action based on voluntarism, joint resource commitment and shared
responsibility of all actors for the whole project can serve public interests as well
as private interests.
Collective action can be commercial in nature; the market mechanism can
promote more sustainable practices through the leverage and spin-off of privatesector investments.

1.2 Need for Joint Venture and Collaboration Agreements:

Properly chosen and implemented businesses can get in on opportunities that they would
have otherwise missed out. By teaming up with other businesses it can extend its
marketing reach, access needed information and resources, build credibility with a
particular target market, access new markets that would not have been accessible without
the partners and also share the risks and expenses. Collaboration agreements are needed
when organizations share a common goal and so they agree to share their resources, such
as finances, knowledge, and people for the benefit of both the organizations.

1.3 Statement of problem:

In India, Joint Venture companies are the most preferred form of corporate entities. There
are no separate laws for joint ventures in India. The term joint venture has not been
defined under any Act or legislation for the time being in force in India. Therefore, the
use of the words joint venture or collaboration' in the title of an agreement or even in
the body of the agreement will not make the transaction a joint venture, if there are no
provisions for shared control of interest or enterprise and shared liability for losses. So,
to discuss it in this project would allow us to know the ups and downs of Joint Venture
and Collaboration Agreements.

1.4 Literature review:

We would be using several books and articles to support our project. The books and
articles are written by eminent authors, who are expert in the field of Law.
1. Association of Corporate Concils book International Joint Ventures Handbook is
a handbook that provides for basic literature available on Joint Ventures. It offers a
clear understanding of the process associated with Joint Ventures in India and
Internationally. The researchers would refer the above mentioned book to have a brief
understanding of the Joint Ventures in India.

2.

V.S Dateys book Business and Corporate laws is a book that provides basic
literature available on Collaboration Agreements. The researchers would refer the
above mentioned book to have brief understanding of the Collaboration Agreements in
India.

Apart from these two books, some other books and articles are there which would be
helpful to add some input to the project. Those books and articles are:

Books

Joint Venture Strategies Design, Bargaining and the Law Zenichi Shishido
Managing Joint Ventures - Paul W. Beamish and Nathaniel C. Lupton

Articles

International joint ventures: an integrated framework - Sameer Vaidya

Joint-ventures as strategic choice - Michael Paul Lyons
Life and Death of International Joint Ventures (IJVs)
Law of Joint Ventures in India - Kamil Sayeed

We hope that these books and articles would guide us in our project and would serve as
best source of literature for our project.

1.5Objectives :
The objectives of the present study are:
To learn to develop a wide range of research skills and attributes relevant to legal
profession.
To provide them opportunities to apply theoretical knowledge to practical
situations.
To promote a deeper understanding of the knowledge acquired.
To understand Joint Ventures and Collaboration Agreements.
To understand the merits and demerits of Joint Ventures and Collaboration
Agreements.

1.6 Hypothesis:
The researchers postulates that going for Joint Ventures and Collaboration Agreements
would benefit the organizations more than what they would have, if going individually.
Also with the optimum use of resources, organizations can perform very well, in turn
increasing the nations business opportunities and eventually increase in nations
productivity.

1.7 Research Questions:

When to go for a joint venture? How to proceed once decided?

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What are the major problems faced in joint ventures? What could be the possible
preventive measures adopted?
How to control the development and operation of a project in a joint venture?
Making crucial decisions, like which party or parties will look after the management
of the project?
How to end a joint venture?

1.8 Scope of Study:

The scope of study is confined to study of legal cases of Joint Ventures and Collaboration
Agreements, study of verdict given by high courts or supreme courts in the case of any
conflict between organizations regarding this.

1.9 Research Methodology:

The study undertaken by the researcher is doctrinal in nature and hence excludes field
study. This study is based on the secondary datas such as published writings of legal
scholars; other documents originating from lawmakers; the published written opinions
of higher courts; writings in legal history; and writings in philosophy; legal dictionaries;
legal encyclopaedias; textbooks; law reform and policy papers; Journal articles
Primary Sources: Primary authorities are the rules of law that are binding upon the
courts, government, and individuals. Examples: constitutions, statutes, regulations,
treaties, court orders, administrative regulations, policy material.
Persuasive Primary Authority: Commentaries on the law that do not have binding
effect but aid in explaining what the law is or should be. Examples: primary authority,
which is not binding on the courts, viz. opinions of the judges, attorney General, law
minister, ministry of parliamentary affairs, primary authorities from foreign
jurisdiction.
Secondary Sources: Commentaries, law journals or periodicals, articles, textbooks,
legal encyclopedia, legal dictionary, annotations, legal opinions, surveys, legislative
history Secondary sources are important in legal research because they point the
researcher to primary sources of the law.