Document background
The Joint Venture Agreement Term Sheet is a crucial preliminary document used in Australian business transactions when two or more parties are considering entering into a joint venture relationship. It serves as a roadmap for negotiations and subsequent detailed documentation, typically prepared after initial discussions but before comprehensive due diligence and final agreement drafting. The document captures key commercial terms, governance structures, and operational parameters that the parties have preliminarily agreed upon. While most provisions are non-binding, it often includes binding obligations regarding confidentiality, exclusivity, and costs. The term sheet is particularly valuable in complex cross-border or high-value joint ventures, helping to identify and address potential issues early in the negotiation process and providing a clear framework for progressing towards a final Joint Venture Agreement.
