Consortium Agreement Contract Meaning

Unlike a joint venture, consortia operate autonomously in day-to-day operations. Consortium is a Latin word meaning “partnership”, “association” or “society” and is derived from consors (“shared”), even con – (“together”) and sors (“destiny”). There are also corporate consortia, for-profit, but they are less widespread. One of the best-known for-profit consortia is the airline manufacturer Airbus Industrie GIE. European aerospace manufacturers collaborate within the consortium to produce and sell commercial aircraft. In France, the consortium, considered as a subtype of a joint venture, is of significant theoretical and practical importance. The French legal order does not contain a definition and does not explicitly use the concept of joint venture or consortium (temporary groupings of undertakings). The consortium contract in France is a purely contractual cooperation agreement that does not involve the creation of a third party. The consortium shall have neither legal personality nor legal capacity. The contract is concluded between two or more natural or legal persons who undertake to carry out certain works with a view to carrying out a joint project which the members of the consortium themselves could not carry out. The consortium contract is not expressly regulated by the French legislature, but it is permitted with regard to the principle of freedom of contract interpreted by Articles 6 and 1134 of the French Civil Code. [5] Remember that a consortium only takes into account the references of the main supplier, both in terms of financial and technical qualifications, by many customers, while a JV can accommodate the technical and financial strength of its promoters. Although it is not mandatory, we recommend referring to the structure and guidelines of the DESCA when developing a consortium agreement.

As I said above, it is advisable to use experienced legal assistance in the preparation of this agreement. . . .