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Construction Joint Venture Failure to Fund Clause

Book Publication Date: Sep 2013
Description: Joint ventures are common in the construction industry due to the advantages they offer for diversifying risk, pooling assets, and bringing together specialists among other things. However, if one member of a joint venture does not contribute their agreed upon share the other members will be given certain recourse in the joint venture agreement. This form is a sample clause providing remedies to the non-defaulting party if a member fails to contribute agreed upon capital.
Type: Contract Clauses
PLI Item #: 59931
Practice Area: Corporate contracts, Corporate law, Insurance, Insurance products, Liability insurance, Professional liability insurance, Real estate, Real estate construction

Keywords: "construction contracts"; "LLC"; "limited liability company"; "joint venture"; bid; "proportionate shares"; "real estate"; building; "joint venture agreement"; "operating agreement"; "contractor"; partnership; "line item"; default; "non-defaulting member"; remedies; loan; "member loan"; "failure-to-fund"; "failure to fund"; "capital contribution"; "additional capital"

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