Joint Ventures are used where two parties agree on a joint enterprise. There are four different legal structures that can be used to govern a joint venture. Which one you choose depends on the degree of integration you require with your JV partners.
To help decide which vehicle to use, we have provided a Joint Venture: Legal Vehicle Comparison Table. It explains the differences between the following vehicles; Partnership, Limited Liability Partnership, Corporate Joint Venture and Contractual Joint Venture (please note that the Table does not go into tax or competition aspects, as these differ according to your particular situation).
The Corporate Folder already contains three agreements governing the first three different types of joint ventures.
Now, a simple Joint Venture Agreement (Contractual JV Agreement) has been added to the Partnership and JV Agreement sub-folder. This Agreement covers the simplest type of joint venture, where two parties agree on a joint enterprise, but they do not want to go to the expense and formality of setting up a partnership (a general partnership or an LLP) or a limited company. This type of agreement – the Contractual Joint Venture Agreement – might be used for example where a project is of limited duration, such as a property development, or the development of a software product.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.