A joint venture is a business arrangement that can involve sole proprietors, partnership or corporations. It is similar to a partnership, in that two or more entities come together to share expenses and profits, but unlike a partnership, a joint venture is typically limited to a specific project, or venture. The Syncrude Project, in Fort McMurry is an example of a well-known joint venture.
A joint venture can be a good option when:
- A project would be too expensive or difficult for one party to complete on its own
- A project involves multiple specialties
- Parties want to work together, but not form a new corporation
- Parties want to retain separate ownership of their assets that will be needed for the project
Like with a partnership, parties in a joint venture are joint and severally liable for the obligations and debts of the project. Therefore, it is important to have a Joint Venture Agreement that sets out the parties’ expectations and responsibilities. MHR Law is happy to assist you with drafting a Joint Venture Agreement. Call and set up an appointment with one of our lawyers.