Joint venture agreements are not the first thing that people think of when they start a new business venture. Yet it is much easier to reach your goals when you work with someone trying to reach the same goal, and the two of you pull your resources. The scenario just described is known as a joint venture. This can take the form of two friends combining their resources to complete a small project. Alternatively, sometimes two major corporations work together to reach a certain end.
Regardless of the size of the joint venture, it is always important to have a joint venture agreement in Alberta when entering into these types of working relationships. The corporate lawyers at Kahane Law Office in Calgary assist clients move forward with their businesses in every form.
What Is a Joint Venture?
A joint venture is not itself a legal entity, such as a corporation. The parties working within the venture maintain their separate legal identifies. The only way to bring any structure or accountability to this project is to draft and sign a joint venture agreement.
What is a Joint Venture Agreement?
This agreement is a contract that is signed by each person or company entering into the joint venture. It provides an outline of the roles and responsibilities of each party. It also defines the end goals of the venture.
The joint venture agreement will also entail the contributions made by each of the parties. Not all contributions are monetary. They can also take the form of skills and labor that are used to progress the venture. A party within the venture might contribute one or a combination of these resources.
Lastly, the joint venture agreement will also detail how the liabilities, expenses, and profits from the venture will be divided among those involved. Learn more about joint venture agreements with our video.
What is Included in a Joint Venture Agreement?
There are no set guidelines for what terms must be included in this contract. The terms often differ significantly depending upon the nature of the venture. If you want to draft an agreement that does not miss any details and that will likely be enforced by Alberta Courts, it is best to consult with an experienced Alberta business attorney.
Important or Useful Information To Include In Your Agreement
In addition to the information described above, there are many other pieces of information that can be very valuable to include within your contract. You might consider including:
- The projected date for when the venture will be complete
- A statement establishing that this agreement is a joint venture, not a partnership (as there are different legal distinctions between the two)
- Details regarding how additional, unexpected expenses will be covered, if necessary
- An outline of a regular meeting schedule between those managing the venture
- A confidentiality agreement clause
As mentioned, different joint ventures will have unique needs regarding the terms to be included in their agreements. The above list of elements that might be addressed within the contract is simply meant to serve as a general guideline. For custom advice, or to draft a contract, it is best to work with an Alberta lawyer.
Do You Really Need a JV Agreement?
If you are launching this venture with a trusted friend, you may think that drafting and signing this agreement is a waste of time. In reality, this may be the most important circumstance in which to have one of these contracts created.
You have probably heard about friends and family members who have gone into business with one another, only to have major fall-outs later. This is often because they have disputes over expenses, control of the venture, profits, or other factors regarding the roles and responsibilities of each member.
These are the types of disputes that can be cleared up before they ever start. For this to happen you need a well-written joint venture agreement created. An experienced Alberta business attorney can help you create the contract that can protect your venture and your professional relationships.
Learn more about joint venture lawyers in Alberta.
Finding Joint Venture Agreement Lawyers in Calgary
To schedule an appointment with one of our joint venture agreement lawyers, please contact our experienced team at Kahane Law Office. CONNECT NOW. We can be reached toll-free at 1-877-225-8817 (or 403-225-8810 locally in Calgary, Alberta), or email us directly here.