A joint venture agreement can lead to profits for everyone involved, but you need to be careful before entering into any contract. Our Long Island, NY real estate litigation lawyers can help you analyze a contract and make sure that all of the important stuff is accounted for. Before you enter into a joint venture agreement, here are some things to think about.
What Considerations Should Be Made When Entering into a Joint Venture Agreement?
When you enter into a joint venture agreement, you need to take the time to figure out whether it’s the right move for you and your company. There should be clear rules and responsibilities laid out, and all parties involved should be on the same page when it comes to all aspects of the project. Before moving forward, you should be sure that:
You have chosen the right partners: One advantage of a joint venture is that you can combine the knowledge and skills of different companies to make a greater profit. So it is important to carefully pick partners who can actually aid you in a project and bring some valuable things to the table.
There are no conflicts of interest: Staying aware of potential conflicts of interest and ensuring that no one benefits at the expense of the joint venture as a whole is a necessity in agreements like this.
Responsibilities are clearly laid out: It is also important that every partner in a joint venture knows exactly what they are supposed to do. Clear conversations about what should be done, when it should be done, and who should do it have to take place at some point.
What Should a Joint Venture Agreement Contain?
When you fill out a joint venture agreement, you should be sure that it contains some key tenets that outline the goals of the project, each party’s responsibilities, and anything else that can affect the project. You may have some agreements that you have already verbally worked out, but you want to have everything in writing as well. Your joint venture agreement should mention:
- The short- and long-term objectives of the project
- How each partner contributes to the joint venture
- What the long-term ownership rights look like
- Any exit strategies available to partners in the project
- Plans for handling unforeseen events and issues
- How profits will be split
Not having a written agreement on the above matters could just result in conflicts and headaches later on.
Contact Our Law Firm Today
So if you are thinking about entering into a joint venture agreement, be sure that you are protecting yourself, your assets, and your interests. Contact David A. Gallo & Associates, LLP to schedule a consultation. We can tell you more about what our real estate lawyers can do to assist you.