What is a Joint Venture Agreement and why might you need one?Leila Mughal
A Joint Venture agreement is intended to be a legally binding agreement typically between two or more business entities that are undertaking a specialised project together. In these types of agreements, both parties establish their duties and obligations for the duration of the business relationship.
There are several different types of joint ventures; it is a constantly developing corner of the law and business strategy, from partnership joint ventures, to project-based ones. With the number of types of joint venture agreements circulating industries, it is necessary you consider legal advice to shape the best outcome for your business by providing a clear outline of how the relationship will be managed and orientated. Since there is no specific legal form for a Joint Venture Agreement in the UK, with several different types of corporate personality, these agreements are highly autonomous and should be tailored to your company. For example, by including clauses to identify intellectual property rights, or how decisions will be handled in a ‘decision making’ clause, a Joint Venture Agreement drafted by our experienced and thorough Adam Bernard contract lawyers offers necessary protection for your company.
What are the benefits of a Joint Venture Agreement?
Joint Venture Agreements form a contractual and corporate basis for the combining of resources. Through combining each other’s strengths in resources, the resulting outcome will benefit both parties more than singular, respective ventures. As well as combining resources, joint ventures will also constitute a combination of talent and specialties across the corporate entities forming this relationship.
They can also offer an opportunity for saving on costs. This is especially relevant to joint ventures which include technology transfers and advances which would be costly to source on your own. However, the opportunity to save money is a relatable advantage for several joint ventures.
Some Joint Venture Agreements will also offer opportunities to enter foreign markets which otherwise might not have been possible. Where some countries have certain restrictions on what businesses enter their market, forming a joint venture with a local business can provide access to a whole new scope for business. Thus, with the opportunity to combine business prowess and industry expertise and with each corporate entity maintaining its own identity, joint ventures are a popular business strategy.
Nonetheless, while a joint venture boasts several advantages it is extremely important to prioritise the legal foundations of this relationship to ensure you avoid any disputes and\or litigation further down the line. A Joint Venture Agreement will ensure that you stay protected in several ways. Providing an effective risk-management strategy and long-term security through drafting a contract tailored to your business, Adam Bernard offers an exceptional service for your joint venture needs.
If we take a closer look at the realities of Joint Venture Agreements in today’s world, take a look at BMW and Brilliance Auto Group. If the move for the two groups to enter into a joint venture tells us anything, it is the massive shifts in strategy and business that the two groups committed. The contractual definitions and commitments underpinned, secured and protected this corporate relationship. The centrality of a good contract surrounds us – let the experts at Adam Bernard secure yours!
A typical Joint Venture Agreement will include, but not limited to:
- Duration and Term
- Intellectual property rights
- Termination and liquidation
- Restrictions on parties
- Decision making
Why Adam Bernard Solicitors?
London-based Adam Bernard has an experienced team of contract lawyers which can simplify and make the process of drafting your Joint Venture agreement easier, ensuring you leave with the highest form of protection and autonomy in your corporate relationship.
We offer a free 15 minute consultation and operate strictly on a fixed fee basis.
Contact an adviser:
Where can you find us?
Adam Bernard Solicitor’s office is located near Upton Park Station, adjacent to the famous West Ham Stadium, with excellent access to the underground and bus routes. If you are driving then there is free parking available at the front and the rear of our office building.