investment contract

Definition of "investment contract"
  1. A deal where a party provides funding into a joint venture, with the expectation of profits that rely on the work of other parties
How to use "investment contract" in a sentence
  1. After reviewing the proposal, it was clear that the deal was an investment contract since the profits would rely on the work of the developers.
  2. The investors were aware that by signing up, the investment contract would have them relying heavily on the other party's efforts to make a profit.
  3. The investment contract contained all the terms for the new business partnership including how the investors' money would be used.

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