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Contractual joint venture agreements

This Practice Note sets out various key commercial matters and options to be considered when drafting or reviewing a contractual joint venture agreement. This Practice Note covers drafting a contractual joint venture agreement where the participants to the joint venture enter into a contractual joint venture agreement setting out the terms of their co-operation and collaboration. It does not cover corporate joint ventures.

The participants to the joint venture need to consider the type of joint venture arrangement and structure that is most appropriate to meet the participants’ objectives, see Practice Notes: Setting up a joint venture—choice of structure and Drafting for particular types of contractual joint venture.

Whichever type of joint venture the participants choose, they should always enter into a comprehensive agreement dealing with:

1. •

   the participants' objectives in forming the joint venture

2. •

   the participants’ initial commitment to the venture in Money, skills or other resources

3. •

   the way in which the revenue and expenses of the venture are to be divided between the participants, and

4. •

   the intended Duration of