Joint Venture Agreement Solicitors
Joint ventures allow businesses to combine their talents, ideas, and resources to achieve shared commercial goals, from developing new products to assessing new markets.
While there’s no obligation for joint venture participants to formalise their arrangement, a Joint Venture Agreement can outline the rights, responsibilities, and expectations of parties to reduce the risk of joint venture disputes.
Whether you’re drafting a joint venture agreement for a new arrangement, reviewing an existing one, or resolving disputes, our network of expert corporate lawyers is on hand to help quickly, for affordable fixed fees.
Contact our legal assessment team today to learn more and get a fixed-fee quote for your joint venture agreement requirements.
What is a joint venture agreement?
A joint venture agreement is a contract in which two or more parties team up on a business project. It spells out who does what and how profits are split. Solicitors make sure these contracts are legally sound and fair for everyone involved.
While verbal agreements are possible, it's smart to have a written agreement drafted by a corporate lawyer based on your initial terms. This ensures clarity and deals with potential issues upfront.
Also, joint venture agreements might not be appropriate for your arrangement. A solicitor can advise on the best legally binding contract or agreement based on your goals.
Do I need a joint venture agreement?
While it's not a legal requirement for two businesses or individuals to sign a joint venture agreement, it's a good idea.
This agreement helps clarify roles, responsibilities, and financial arrangements from the beginning of the collaboration, reducing the chance of future conflicts.
Does a joint venture agreement need to be made in writing?
No, but it's highly recommended. When a joint venture agreement is documented in writing, both parties understand their roles and obligations clearly.
Without this, parties may misunderstand or get confused about what was agreed, leading to disputes, court proceedings, and even the agreement ending early.
What is the difference between a contractual joint venture and a partnership?
In a contractual joint venture, partners outline their roles and duties in a formal contract. They maintain their separate businesses while combining their resources and expertise.
A partnership is where two or more individuals or businesses come together as co-owners of a shared business to achieve a common goal. In this, they share ownership, profits, losses, and management duties. Partnerships can be general or limited, and both parties may have unlimited liability, whereas in limited partnerships, partners' liability is limited.
How do you structure a joint venture agreement?
A joint venture can be contractual or entity-based.
Entity-based joint ventures can be a company (where parties own a share in the company), a Limited Liability Partnership (LLP), or a partnership.
Since joint ventures can take different legal forms, it’s a good idea to consult with a solicitor to understand which is the most efficient structure for your joint venture before creating a joint venture agreement.
What should be included in a joint venture agreement?
A joint venture agreement should include the name of the joint company or partnership and details about each party. It should also include:
The purpose of the joint venture
Each party’s contributions and responsibilities
How profits and costs are divided
How liability and risks are shared
Details of how disputes will be resolved
Confidentiality clauses
Non-compete clauses
Details of intellectual property ownership
How long the joint venture
Conditions for termination.
If you set up a company as part of your agreement, you may need to issue shares and register with Companies House, also.
Do you need a solicitor to draft a joint venture agreement?
You don’t need a solicitor to draft a joint venture agreement. However, you should seek the advice of an experienced corporate solicitor when drafting a joint venture agreement to make sure your goals are realised and your interests are protected.
Alternatively, a solicitor can review your joint venture agreement, provide personalised advice, and identify potential risks relating to different areas of law, such as employment law and intellectual property.
How much does a joint venture agreement cost?
The cost for a licensed solicitor to draft a joint venture agreement depends on many factors including the complexity and specific requirements of the case. On average it is expected to range from £345-£429 but in some cases, it could cost as much as £513.
How can Lawhive help?
Our network of experienced solicitors can help you in setting up your joint venture agreement by:
Providing expert advice on how a joint venture agreement can protect your interests and minimize the risk of disputes down the line.
Guiding you through the standard terms typically included in a joint venture agreement.
Drafting a comprehensive joint venture agreement tailored to your unique situation. They'll ensure that all your concerns and objectives are addressed in the document.
Request a callback from our Legal Assessment team for a free quote and case evaluation for your joint venture agreement today.