JOINT VENTURE LAW

Contact Neufeld Legal PC at 403-400-4092 or Chris@NeufeldLegal.com

Joint ventures are characterized by: two or more parties entering into a contract to pursue a specific project; where each party agrees to provide specific services, property or capital to the project; each party participates in the control of the project; and each party intends to profit from its active participation in the project. [See Graham v . Central Mortgage and Housing Corporation and Bras D’or Construction Ltd., [1973] 13 N.S.R. (2d) 183 (S.C.T.D.) at 208]

As such, joint ventures have the semblance of a partnership, given that a partnership is defined as a "relationship that subsists between persons carrying on a business in common with a view to profit." [definitions, Partnership Act (Alberta) R.S.A. 2000, c. P-3, comparable to definition in the Partnership Act (Ontario) R.S.O. 1990, c. P.5]; nevertheless, the parties to the joint venture typically seek to limit their business collaboration to that specific project and have their business collaboration directed by the written contract that they have negotiated, as opposed to relying upon statute and common law pertaining to partnerships.

A joint venture is a powerful legal construct, as it enables separate market players, and even erstwhile competitors, to join forces in pursuit of a particular business venture. With the defined construct of a legally binding contract, the parties are able to aggressively pursue their objective goals in tandem. Critical to this pursuit is the legal contract and the lawyer that pulls it together, as this controls each of the parties to the joint venture and enables them to confidentiality put their full energy into realizing its achievement.

Legal counsel for joint ventures and other forms of business partnerships therefore must facilitate the realization of optimal profits within a legal framework that lawful protects the business participants. This is essential to maximizing your Canadian joint venture, for it provides important assurances that will enable the business to move forward with confidence, while limiting future infighting and breakdowns of the business relationship. For legal counsel as to your business' joint venture, contact our law firm at Chris@NeufeldLegal.com or 403-400-4092 / 905-616-8864.

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