Document background
The Joint Venture Term Sheet is a crucial preliminary document used in the early stages of forming a business collaboration between two or more parties in Canada. It is typically employed when organizations wish to explore a formal joint venture relationship while documenting their initial understanding and key commercial terms. The document outlines fundamental aspects such as ownership structure, governance, capital contributions, and profit sharing, while ensuring compliance with Canadian federal and provincial regulations. While most provisions in a Joint Venture Term Sheet are non-binding, it serves as an essential roadmap for negotiating definitive agreements and often includes binding provisions regarding confidentiality and exclusivity. This document is particularly valuable in complex cross-border transactions where Canadian legal requirements must be carefully considered and addressed in the final joint venture structure.
