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Joint Ventures and Partnership Agreements
Joint ventures and partnership arrangements can be greatly beneficial to a business, but need to be organised correctly to deliver maximum benefits for all parties. JMW Solicitors can provide the legal guidance you will need to ensure these agreements are drafted in a way that is thorough and comprehensive.
Our commercial law team has considerable experience in advising businesses on how to get the best out of these agreements, ensuring they are drafted and worded in a way that offers maximum clarity, protection and practical benefits for those involved.
To speak to a solicitor about drafting a joint venture or partnership arrangement, get in touch with JMW today by calling 0345 872 6666, or by filling in our online enquiry form to request a call back.
How JMW Can Help
Joint venturing and joint partnering can be a complex area of law, requiring specialist assistance to make sure all matters are dealt with properly and thoroughly. Our team has lots of experience advising businesses of all sizes entering into joint ventures or partnerships, and will provide tailored advice based on your specific circumstances.
Specifically, we will work to ensure that each party has a clear understanding of the following:
- What is expected of them
- Who is responsible for providing funding
- Who bears risk in relation to trading, and in what proportions
- How decisions affecting the venture will be made
- What happens if the relationship breaks down, or when one of the parties no longer wants to be involved
One of the key priorities of any joint venture arrangement is to ensure that one party is not able to railroad the other, and equally that none of the partners are able to become obstructive or uncooperative if their management decides not to focus on the joint venture any more.
JMW’s team is able to draw from its vast experience to provide mechanisms and good governance processes to ensure that each party is protected, without the need for onerous meetings and management by committee.
How Do Joint Ventures and Partnership Arrangements Work?
Teaming up with another business can be a great way to provide new services and products to customers. Combining specialist services or products from two or more businesses allows for increased innovation, or a more efficient way of providing goods or services.
The first decision to be made in any joint venture or partnership agreement is how the arrangement will be structured. For example, a loose partnering agreement can provide parties with greater flexibility; however, it also can make it more difficult for the parties to manage the relationship, because it can become unclear who is responsible for contracting with customers, or how the partnering arrangement ties in with their day-to-day business.
By contrast, creating a clear joint venture entity, whether this is a separate limited company or a formal partnership, can provide greater focus for the parties involved, allowing them to define a clear contracting party and to formally lay out each stakeholder’s obligations to the dedicated partnership entity. However, these arrangements may also be seen as more restrictive for the parties, requiring tighter and more structured administrative processes.
Our team can help you to weigh up the pros and cons of each arrangement, depending on the specific requirements and goals of the partnership.