What Is Meant By Consortium Agreement

Another example is the World Wide Web Consortium (W3C), a consortium that standardizes web technologies such as HTML, XML and CSS. Co-optition is a word marked by collaboration and competition. It is used when, on the other hand, companies work with competitors in a consortium to cooperate in areas that are not strategic for their core business. They prefer to reduce their costs in these non-strategic areas and compete in other areas where they can better differentiate. In Germany, the prevailing view is that the consortium is a kind of intra-judicial partnership (Article 705-740 BGB). In the field of external relations, the members of the consortium can decide on the joint and several liability that results from the . 421 BGB is regulated, whereas internally there is sometimes an exemption from this liability. Joint ventures often include credit consortia (credit consortia), issuers of securities, mainly shares (issue consortia), construction consortia (construction consortia) and profit pools (result pools). Sometimes, goal partnerships established for the sharing of construction facilities (planning companies) are listed in a category with the consortium and the pool. Cooperation agreements under German law do not constitute a uniform legal nature. There are a wide variety of legal forms of cooperation that could be carefully qualified as consortium agreements.

These include a civil partnership in its internal and occasional variants (occasional company), as well as a partnership of construction contractors (ARGE) and a structure simply called a « consortium ». [7] The list can simply be expanded. This alone shows that the consortium is a popular instrument of cooperation between equal, economically and legally independent people. Airbus Industries was founded in 1970 as a consortium of aerospace manufacturers. The maintenance of production and engineering assets by partner companies has made Airbus Industries a sales and marketing company. [2] This agreement has led to inefficiencies due to the inherent conflicts of interest faced by the four partner companies; they were both shareholders and subcontractors of the consortium. The companies cooperated in the development of the Airbus range, but they monitored the financial details of their own production activities and tried to maximize the transfer prices of their assemblies. [3] A consortium is a temporary association of equal, economic and legally independent people.

As consortia, these legal entities agree on the realization of a common project.