Legal Definition Of Consortium Agreement

Alyeska Pipeline Service Company, the company that built the trans-Alaska pipeline system in the 1970s, was originally a consortium of BP, ARCO, ConocoPhillips, Exxon, Mobil, Unocal and Koch Alaska Pipeline Company. [Citation required] A consortium (plural: consortia) is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the aim of participating in a common activity or pooling their resources to achieve a common goal. Unlike a joint venture, consortia act independently in their day-to-day operations. While consortia tend to share resources, they act independently when it comes to day-to-day business. In the case of a joint venture, two or more parties generally share ownership of a business, as well as risks, profits, losses and governance. In the Polish legal system, the legal nature of the consortium agreement is controversial. According to the dominant approach, a consortium is a different form of cooperation than a civil partnership between economically independent companies that are already operating in the market for the implementation of a specific enterprise that is a segment of the regular activities of these enterprises, based on an unspecified contract and characterized by a temporary nature, minimization of institutionalization and the absence of separate ownership. , the need to clarify how the parties participate in the joint venture and the intention not to create a „community“ with part interests (the partnership itself). According to this approach, the partnership agreement, despite the very broad formula of a civil partnership for companies that commit to cooperating in a certain way to achieve a common economic objective (which is a common element for both types of contracts), is not to exploit all forms of cooperation and automatic qualification of consortium contracts, because partnerships are not allowed.

[8] There are also corporate, profit consortia, but they are less widespread. One of the best-known profit consortia is the aircraft manufacturer Airbus Industrie GIE. European aerospace manufacturers are cooperating within the consortium to produce and sell commercial aircraft. The Institute for Food Safety and Health is a consortium of the Illinois Institute of Technology, the Food and Drug Administration`s Center for Food Safety and Applied Nutrition, and members of the food industry. The Institute`s work includes „the evaluation and validation of new and innovative technologies for food safety and conservation, treatment and packaging systems, microbiological and chemical methods, health-promoting food ingredients and risk management strategies.“ [4] Remember that a consortium only takes into account the references of the main supplier, both in terms of financial and technical qualifications, of many customers, while a joint venture can accommodate the technical and financial influence of its promoters.