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Joint Venture Lawyers in Calgary

Jumping into the world of joint ventures can feel overwhelming. While there are many benefits to a joint venture relationship, the difficulty of crafting an agreement that protects the interests of all parties and paves the way for a beneficial business relationship requires the assistance of an experienced legal professional.

A joint venture can be an appealing opportunity to team up with another company to target an opportunity that you might not be capable of capitalizing on alone – all while sharing resources, expertise, and the risks and profits involved.

However, some might see it as an impossible task. After all, you might feel like each party in a JV agreement is ultimately looking out for its own good. If you are wondering if your current joint venture partner is strong or if you need to create one to establish a successful relationship, that’s where our business lawyers come in.

At DLegal, we offer you pragmatic advice and help you craft a joint venture agreement that accurately represents the situation and has the appropriate protections in place.

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Joint Venture Lawyers

With their vast exposure to many joint venture scenarios, experienced business lawyers help evaluate and limit the legal risk of a joint endeavor. They do this by establishing proper legal formalities for your joint venture relationships and advising on potential pitfalls.

When you team up with DLegal, we will help you to craft a joint venture agreement that protects your interests, so you won’t have to worry about malicious or predatory action from the partners you choose to do business with. Enter joint venture agreements with confidence with a DLegal business lawyer.

What is a Joint Venture Agreement?

Joint ventures, also known as JVs, are a type of business relationship in which two or more entities agree to pool resources in order to accomplish a specific goal. Joint ventures are often used by parties that want to enter new markets but don’t have the resources to do so on their own.

Joint ventures tend to be limited in size and length, often being drafted to accomplish a specific goal. These are unlike partnerships that are used for longer-term business relationships. Partnerships are also less restricted in focus and may continue as long as the two or more individuals involved can continue to make money together.

The risks of a joint venture are often higher than those of an ordinary business because there are more parties involved. The fact that joint ventures occur between two or more parties who each have their own unique interests means that contention and disagreement are not uncommon.

The joint venture agreement helps to overcome this by establishing the roles and responsibilities of each of the parties involved. The agreement should specify what each party will contribute to the project, the responsibilities of each party, the extent of the relationship, and how profits will be divided up.

Joint Venture Uses

HOW JOINT VENTURES ARE USED IN THE BUSINESS WORLD

The obvious use for a joint venture is when a company does not have all the necessary resources or expertise to enter a market by itself. Additionally, a company might form a joint venture with another company in order to enter a specific market that they are unestablished in. For example, an American company might form a joint venture with a Chinese company in order to sell products in China.

A joint venture might also be formed to give two less competitive companies in the same market the ability to compete with other companies at a higher level.

A famous real-life example of this is when Lockheed Martin and Boeing, previously two competitors in the aerospace market, came together to form ULA (United Launch Alliance) after the rising competitor SpaceX started undercutting their prices for providing launch services to the United States government. It is important to note that the extent of the cooperation between the aerospace titans only covers launch services, and they are still competitors in other areas.

Types of Joint Venture Agreements

REASONS FOR MULTIPLE JOINT VENTURE AGREEMENT TYPES

There are two ways in which two or more parties can come together to form a joint venture. It can take the form of a contractual agreement or a separate legal entity. Each has its own uses and requirements. The type of joint venture agreement that you would like to enter into will mostly be influenced by the endeavor you are looking to undertake and the length of the business relationship.

CONTRACTUAL AGREEMENT

The first type of JV agreement is a contractual agreement. The contract should be in writing and will detail the rights, responsibilities, and division of profits. Here, the companies each maintain their own identities and simply work together on a defined goal. This type of agreement is ideal when the joint venture has been created for the purpose of completing a particular business project together, but not an ongoing relationship.

SEPARATE ENTITY

The second type of joint venture agreement is when two or more parties create a separate entity through which they will pursue their common endeavor. An example of this is in the section above, where Lockheed Marting and Boeing came together to form ULA, a separate legal entity. This type of agreement is for longer-term business relationships where businesses are looking to work together in a limited capacity for an extended length of time.

The Joint Venture Process

CHOOSING A BUSINESS PARTNER

The first step in the joint venture process is to choose your business partner. This is arguably the most important step in the whole process, as having an unsavory business partner can destroy any chances you have of a successful ongoing business relationship.

There are many questions that need to be asked when choosing a partner, including “How can this business help me accomplish my goals?” “What is their attitude toward collaboration?” “Do I trust the people running this business?” “Do they have the resources and financial stability to be useful to the endeavor?”

CHOOSE THE TYPE OF JOINT VENTURE AGREEMENT

Next, you will decide on the type of joint venture you are looking to engage in. We already discussed the types in the previous section, but to recap, a contractual agreement is best for endeavors that are limited in time and scope. Forming separate legal entities are better if the joint venture project is going to be an ongoing collaboration. A corporate lawyer will be able to advise you on the best type of joint venture for your particular situation.

DRAFT THE AGREEMENT

Finally, it’s time to draft the actual joint venture agreement. Having a business lawyer with a solid understanding of commercial law in your corner while putting together legal documents is essential to this stage. This is where the details of the business undertaking will be hammered out, and all the terms will be agreed upon. Each party should have a separate corporate lawyer on their side so that there are no biases in place.

It may take more than one iteration of the agreement before all parties are satisfied and ready to be legally bound by the agreement. Remember, companies are considering obligations, liabilities, debts, assets, expenses, and exit strategies at this stage. When everyone is satisfied with the agreement, it is time to sign and begin the venture.

Partnering with a Joint Venture Lawyer

Entering into a joint venture agreement can be both an exciting and a nerve-wracking experience. Employ the assistance of a joint venture lawyer to start off on the right foot. A competent joint venture lawyer will be by your side as you go through the process of creating a contract.

At DLegal, we can serve as your business lawyer in Calgary and help you craft your JV agreements so that they protect your best interests. We want you to thrive and will work to ensure that you are fully aware of what will be expected of your business and what you will get out of the relationship.

Fees

Joint Venture Lawyers in Calgary

JOINT VENTURE OR PARTNERSHIP AGREEMENT* $2495+

The flat rate does not include GST, disbursements, and extra services.

*50% discount applies to the initial hourly consultation.

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Lawyer & Notary
Anna Dunaeva

Anna perpetually works to surpass her clients' expectations. Through continuous communication, Anna delivers on her commitment to keep clients at the centre of her practice.

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