A Study of Comparing Model and Actual Contracts for a Joint Venture

Many studies have discussed the importance of a contract in an international joint venture (IJV). Moreover, many enterprise were asked to sign an official MODEL contract while entering China s market. This paper aims to examine the provisions in two JV contracts: the Model from the Chinese International Economic and Trade Arbitration Committee and the JV formed between Shenyang JinBei Automotive Industry Holdings Company Limited and BMW Holding BV. These contracts will be analyzed using Parkhe s research conclusion, which proposed the checklist for contract documents: (1) periodic written reports of all relevant transactions; (2) prompt written notice of any departures from the agreement; (3) the right to examine and audit all relevant records through a firm of CPAs; (4) designation of certain information as proprietary and subject to the confidentiality provisions of the contract; (5) non-use of proprietary information even after termination of the agreement; (6) termination of the agreement; (7) arbitration clauses; and (8) lawsuit provisions (Parkhe 1993). We hope that the analysis and information will help to ensure the rights and obligations of both parties in IJV cooperation.

Autorentext

Liu Hui-chun, teaching in Taiwan, did further research at National Yunlin Univ. after ten-year working experience in international trade and earned her degree in 2009; co-author John C.C. Cheng, J.D., admitted in the state of New York, U.S.A., currently an associate professor and the director of international legal services at National YunLin Univ.