The Law in relation to Joint Venture Agreement (JVA)



In Malaysia, the law governing joint venture agreements is primarily found in the Contracts Act 1950 and the Companies Act 2016.

Under the Contracts Act 1950, a joint venture agreement is essentially a contract between two or more parties who agree to combine their resources for a specific purpose or project. The agreement must be entered into voluntarily by all parties and must have a lawful object. The terms and conditions of the agreement are binding on all parties, and any breach of the agreement can result in legal action.

In addition to the Contracts Act 1950, the Companies Act 2016 also governs joint venture agreements involving the formation of a company. If the joint venture involves the incorporation of a company, the provisions of the Companies Act 2016 relating to the formation, registration, and governance of companies must also be complied with.

It is important for parties to a joint venture agreement to carefully consider the terms and conditions of the agreement, including issues such as ownership of assets, management control, profit-sharing, and dispute resolution mechanisms. It is recommended that parties seek legal advice to ensure that their joint venture agreement is legally valid and enforceable. Therefore it is advised for parties to a joint venture to seek the advise of a Lawyer before they can sign a Joint Venture Agreement.



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