Joint ventures (JVs) can be a great way to pool resources, expertise, and finances for a business project.
However, when two or more people get together, disagreements can happen. If you’re worried about the success of your venture, our dispute resolution solicitors can provide clear advice to protect your interests.
What is a Joint Venture?
Joint ventures are formed where two or more persons or companies come together to execute a particular business proposition or project. This is usually set out in a Joint Venture Agreement (JVA), which may define:
- Each party’s roles
- Responsibilities
- Share of the profits
Joint ventures have become a common way for businesses to expand into new markets, share resources and risks, or fund large-scale projects. But even with the most careful planning, disputes can sometimes happen.
Common Causes of Joint Venture Disputes
- Conflicts over each party’s share in the business as well as shares in the income and capital increase of the business.
- Ambiguity and uncertainty in respect of the level of participation each party is expected to contribute to the business.
- Disputes over how to grow the business (such as whether a new business should be acquired or whether expansion into another sector should take place).
What to Expect From Our Joint Venture Solicitors
Our solicitors in London have the knowledge and expertise to advise you on your joint venture dispute.
Where possible, it’s often faster and cheaper to resolve a joint venture dispute through Alternative Dispute Resolution. Our experienced team can advise on methods like mediation, negotiation, or arbitration – which can help to reduce costs, time, and aim to preserve business relationships or long-term friendships.
However, if you need to go to court, our litigation team can robustly represent you and your interests. Early intervention can make all the difference. Speak to a lawyer at TV Edwards today for trusted legal advice.
Why Choose TV Edwards?
- Highly ranked in legal directories – Recognised by Legal 500 and Chambers UK
- Proven success – A track record of complex and high-value UK joint venture cases
- Cost-effective solutions – We prioritise practical resolutions to keep costs manageable
- Specialist expertise – Our lawyers understand the best approach for the relationship
- Client-first approach – Clear, honest legal advice from start to finish, tailored to you
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Joint Venture Frequently Asked Questions
What are the conflicts in joint ventures?
Conflicts in joint ventures that may need dispute resolution can include disagreements on how profits are shared, the level of contribution each party is expected to make, and the direction of the business. Disputes may also happen if one person fails to meet the obligations detailed under the Joint Venture Agreement.
What happens if a joint venture fails?
If a joint venture fails, the result is dependent on what has been detailed in the terms of the Joint Venture Agreement. For example, the venture may be dissolved, assets may be divided, or liabilities settled. Without a clear agreement in place, disputes can become complex – legal advice can help you protect your interests.
Are joint ventures always 50/50?
Joint ventures are not always 50/50, and the split can be whatever the parties agree on in the Joint Venture Agreement. This can set out information like the share in profit, decision-making powers and responsibilities.