Document background
The Joint Venture Term Sheet is a critical preliminary document used when two or more parties intend to form a joint venture in or under the laws of Hong Kong. It captures the essential commercial and legal terms agreed upon during initial negotiations, serving as a blueprint for the detailed joint venture agreement to follow. Typically used in cross-border transactions or significant domestic collaborations, this document outlines fundamental aspects such as ownership structure, governance, capital contributions, and operational parameters. While predominantly non-binding, certain provisions like confidentiality and exclusivity are usually binding. The document must comply with Hong Kong legal requirements and commonly references key legislation such as the Companies Ordinance and Securities and Futures Ordinance. It's particularly valuable in complex negotiations involving multiple stakeholders or when parties need to secure internal approvals or external financing based on preliminary terms.
