Master agreement for manufacturing and distribution
A single contract between two parties specifies the terms and conditions related to manufacturing and distribution activities, and dictates how these activities are carried out in various jurisdictions through several entities.
The parties may determine that this agreement contains several discrete joint arrangements (one for each activity in each jurisdiction, which corresponds to an entity). In this case, each entity would likely be classified as a joint venture OR a joint operation. This would likely be the case if the terms and conditions relating to each activity were distinct for each separate vehicle. Although in this example it is concluded that the general partnerships are joint operations and the limited partnerships are joint ventures, this may not always be the case depending on the legal form, contractual terms, and facts and circumstances. See 5 below for additional discussion.
Variation A contract between two parties specifies the terms and conditions related to manufacturing and distribution activities, and dictates how these activities are carried out in various jurisdictions. One party has the ability to direct the relevant activities in certain entities (e.g. the entity in Country A), and the other party has the ability to direct the relevant activities for others (e.g. the entity in Country B). In this case, there would not be Joint control between the two parties. Rather, each party controls its respective entities.