A joint venture agreement is a contractual agreement between two or more parties that come together for the purpose of undertaking some sort of commercial enterprise. The agreement outlines the specific terms of the joint venture and defines each party’s rights and obligations in relation to the venture. It also defines how profits and losses will be shared, and how disputes will be resolved. It is important that all parties involved in a joint venture have a clear understanding of its terms and objectives before signing a joint venture agreement. Joint ventures are often seen as low-risk ways to initiate business activity and expand operations into new markets.