A Letter Of Intent Joint Venture is commonly used in Indian business practice as a preliminary step before entering into a full-fledged joint venture agreement. This document is particularly relevant when parties wish to formalize their initial understanding while maintaining flexibility for detailed negotiations. It serves as a crucial tool in complex business combinations, cross-border collaborations, and domestic partnerships, providing a framework for due diligence and detailed negotiations while protecting confidential information. The document typically includes key commercial terms, proposed structure, and timelines, while being governed by Indian law, particularly focusing on corporate and contract law provisions. It's especially valuable in situations requiring regulatory approvals or involving multiple stakeholders, as it helps align parties' expectations early in the negotiation process.

1. Date and Parties: Identification of the date and all parties involved in the proposed joint venture, including their legal names, addresses, and registration details

2. Background/Recitals: Brief description of each party's business and the context leading to the proposed joint venture

3. Definitions: Key terms used throughout the letter that require specific definition

4. Purpose and Scope: Clear statement of the intended purpose of the joint venture and its broad scope of operations

5. Proposed Structure: Outline of the intended legal structure of the joint venture and proposed ownership percentages

6. Key Terms: Essential commercial terms including proposed capital contributions, management structure, and profit sharing principles

7. Timeline: Proposed timeline for due diligence, negotiation, and execution of the definitive joint venture agreement

8. Exclusivity: Terms regarding exclusive negotiations between the parties for a specified period

9. Confidentiality: Provisions regarding the confidential treatment of information exchanged during negotiations

10. Binding/Non-binding Nature: Clear statement of which provisions are binding (typically confidentiality and exclusivity) and which are non-binding

11. Costs and Expenses: Statement regarding who bears the costs of negotiation and documentation

12. Governing Law: Specification of Indian law as the governing law

13. Signatures: Execution blocks for all parties