Recent Answers to Joint Venture Agreement Law Questions

N'kia N.

Answered May 19, 2023

Typically, liability for each party to a joint venture is determined by the joint venture agreement itself. However, if the joint venture agreement is not sufficient to establish liability or there is no agreement, the law imputes "per capita" (per head) liability. For example, in a joint venture that involves three separate individuals and/or entities, each venturer bears one-third of the total liability. For this reason, joint venturers commonly register a separate entity such as a limited liability company ("LLC"). Hope this helps!

Karen M.

Answered May 6, 2023

The voting rights should be based on what the parties determine to be appropriate based on your particular teaming arrangement. You also should consider if there is any voting requirement based on an end-user for the joint venture (e.g., governmental authority may require a majority ownership by one of the joint venturers as well as majority voting rights as in the case of an 8(a) certified entity).

Donya G.

Answered Mar 31, 2023

Did you and the company not sign an agreement to govern the joint venture? If you haven't already done so, that is the first thing to do. The agreement would outline how the assets and liabilities would be divided, how to dissolve the venture, what happens upon dissolution and everything you both agreed to. Without an agreement in place it then would depend on the parties to agree. Without an agreement, either party can change their minds. If you need assistance in drafting the joint venture, I can assist. You can find me on the Contracts Counsel website or on my personal page Donya Gordon Donya Gordon

JOSEPH L.

Answered Mar 31, 2023

A joint venture, unlike a partnership, is not considered a seprate legal entity for tax purposes and does not require a seprate tax ID number. A Joint Venture Agreement, is kind of like an LLC operating Agreement entered into by two or more persons and treated as a partnership. The Joint Venture Agreement, like the operating agreement of an LLC, is the document that should explain the purpose of the joint venture and cover situations like confidentiality, non-disclosure, non-solicitation, non-competition, fiduciary duties, if any, and the exit strategy, to name a few. The exit strategy could be dissolution of the joint venture, buyout by one or more of the parties to the joint venture, or sale to a third party. When I represent on of the parties to the joint venutre I usually start with a term sheet and go over all these items and get feed back from the parties before starting to draft the Joint Venture Agreement. https://www.josephblarocco.com/joint-venture-agreement.html

Donya G.

Answered Mar 28, 2023

This can be done by agreement of the parties. Typically it can be done in the same way profits are split or depending on how much the parties are contributing to the JV. If you need assistance with the JV agreement, I can help. You can find me on the contracts counsel website to engage my services. All the best Donya Gordon

Donya G.

Answered Mar 24, 2023

If you have an agreement in place, you can simply follow what the agreement says you need to do in order to exit. If you don't, you would need to negotiate an exist with the other party/parties that are involved to ensure a smooth and amicable exit. I can assist you with that. You can engage my services through the website and I can assist. Donya Gordon