Consortium Agreement Clauses

September 15, 2021 at 2:19 pm

In the economy, consortia are not as widespread as in the non-profit sector, given the competitive nature of the activity. Consortium agreements generally provide that one of the higher education institutions or universities where a student has enrolled simultaneously is responsible for the management of state financial aid. Such consortia allow different for-profit companies to combine technical know-how and pool resources to develop something they would not have developed otherwise. In our example, British Aerospace, Aerospace, Construcciones Aeronáuticas SA and DASA formed a consortium and at the same time a legal entity for the consortium in which they were shareholders. A consortium can be formed between individuals, companies, governments, non-profit organizations, or any combination of business units that pool resources to achieve the consortium`s goal. They may have a consortium agreement between two companies, higher education institutions, universities, governments or other for-profit or non-profit organisations. Where a legal person is incorporated, the members of the consortium must cooperate to ensure that the objective of the consortium is achieved, while appropriately managing the legal person in order to benefit from the protection of limited liability. In essence, a consortium agreement can be defined as an agreement between two or more companies or entities that allows them to accomplish certain things beyond their individual capacity. . . .