Publications

Legal Issues To Consider When Planning A Joint Venture Agreement

 

Joint ventures can take many different forms and can be defined in various ways. A common example of a joint venture involves two business entities or individuals with aligned strategic interests entering a legal arrangement where each party will contribute resources to accomplish a common goal. This entry explores several legal issues to consider when planning a joint venture.

 

The parties to a joint venture will need to document how they will share profits and losses experienced by the venture. Contributions of cash, property and/or services should also be clearly defined, as well as distributions during or at the termination of the venture. However, because a joint venture will often involve a mutual undertaking between parties with some overlap in their strategic business operations, capabilities and goals, the parties should clearly spell out the legal boundaries of the overall relationship.