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Termination provisions in a contractual joint venture are probably some of the most important contractual terms. Each party should think carefully about what happens if the project fails, stops or fails, and what that means for them and their investment. The parties may wish to be able to terminate the agreement prematurely before the project is completed, or involve all parties in a lock-in phase in a lock-in phase, during which they will have to commit to the project in a certain period of time (and possibly investments) before they can decide to terminate the project. There may be termination provisions if a project stone is not reached or if the other parties breach a material obligation of the agreement, and generally any business agreement allows one party to terminate the agreement if the other party becomes insolvent. The list of reasons that allow the parties to terminate the cooperation agreement or project varies from project to project, but it may still be worth thinking about what will happen if the parties fail to reach an agreement and a deadlock with decision-making and whether this could lead to a right of termination if it is not resolved. The cooperation agreement should also specify what happens when a party decides to withdraw from the agreements. This may include defining what happens in practice with shared resources, existing supplier or customer relationships, or shared confidential agreements or information. The parties should also consider whether it is necessary to continue the cooperation after the cessation and how long (e.g. B all the obligations still to be complied with).
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