Our business lawyers are thoroughly experienced in partnership and joint venture preparation and litigation and are well able to provide prompt and realistic advice as to the rights and obligations of participants.
People are often confused as to whether the nature of a relationship is one of a partnership or one of a joint venture. Usually, a joint venture is for a specific purpose whereas a partnership will continue on, and more importantly, in the event of the failure of a partnership business, the partners are jointly liable for the debts of the partnership.
Neither agreement must be in writing. The fact that parties work together with a common goal is usually enough to indicate some form of common venture between them but it is always preferable to have a written agreement because this will regulate most areas where the parties can come into dispute, as an example:
- What are the expectations of each party;
- What sort of capital is expected to be contributed by each party;
- How is the venture to be managed financially;
- What is the decision making process and how can deadlocks be avoided;
- Can the parties compete and to what extent;
- What is to happen upon the ending of the arrangement;
- What is to happen if one party cannot contribute.
Because of the opportunity for parties to come into dispute, and for the recollection of parties to diminish over time, it is best for the agreements between the parties to be documented at the outset. Our business lawyers can advise in relation to rights and obligations in respect of these arrangements and suggest means of overcoming challenges.