Joint Ventures and Collaboration Agreements
In addition to corporate joint ventures, contractual joint ventures can provide the same result with less integration between each of the constituent companies that form the venture. A contractual joint venture particularly differs from a corporate joint venture in that it does not involve the setting up of a separate corporate vehicle (whether via a company, partnership or other legal entity) and that the parties do not intend to operate as a formal, unincorporated partnership.
Particular advantages of the commercial joint venture are its simplicity (as mentioned above). With its simplicity comes independence; as a constituent part of a commercial joint venture the parties remain as entirely independent, with less likelihood of a participant being liable to a third party because of the act or omission of a co-participant. It is also a lot cheaper, and therefore more attractive to smaller, higher risk businesses.
Typical examples of where you would expect to see a commercial joint venture are as follows:
• Research and development or technology collaborations;
• Joint tenders for a particular project under a bidding or consortium agreement;
• Resource sharing arrangements; or
• The development of a new product.
This is, of course, by no means an exhaustive list. If you are looking at entering into an informal arrangement such as a contractual joint venture, we can assist you in the development, negotiation and execution of such a project.
When looking into the possibility of a commercial joint venture, our Commercial team will ensure you are best placed to make an informed decision regarding whether a commercial joint venture is right for you.
Our expertise with Contractual Joint Ventures and Collaboration Agreements:
Here are a small selection of the types of clients we have acted for and the work we have done in this area:
• We advised a financial services organisation on arrangements relating to a joint venture company set up to develop and exploit a specialist software product.
Should you have any queries regarding contractual joint ventures or collaboration agreements, please get in contact with Robert Capper, head of the Commercial Department, for an initial and no obligation discussion either by phone on +44 (0) 1905 744814 / +44 (0) 7909 970323 or by e-mail at firstname.lastname@example.org.