Article 4 of the Supreme People's Court's "Answers to Several Questions on Trial of Joint Venture Contract Disputes" stipulates that the legal effects of a joint venture with a guarantee clause are as follows: (1) The guarantee clause violates the principles of * * * negative profits and losses and * * * risk-taking that should be followed in joint venture activities, and damages the legitimate rights and interests of other joint ventures and creditors of the joint venture, so it should be confirmed invalid. If a joint venture suffers losses, the fixed profits collected by one party to the joint venture in accordance with the guaranteed terms shall be withdrawn in full to compensate for the losses of the joint venture. If there is no loss, or there is still a surplus after compensation, the remaining part can be used as the surplus of the joint venture, and the two parties shall re-negotiate the reasonable distribution or redistribute it according to the investment proportion of the parties to the joint venture. (2) An enterprise legal person or institution legal person, as a joint venture, invests in the joint venture, but does not participate in the joint venture, nor does it bear the risk responsibility of the joint venture. Regardless of the profit and loss, the principal and interest are recovered on schedule, or the fixed profits are collected on schedule. It is called a joint venture, but it is actually a loan, which violates the relevant financial regulations and should confirm that the contract is invalid. In addition to the return of the principal, the interest obtained or agreed by the investor shall be collected, and the other party shall be fined equivalent to the bank interest.