Partnership and joint venture agreements

Where two or more parties decide to establish a common business venture, the first obstacle they are faced with is choosing the correct form of trading entity. Aside from setting up a limited company the mains types are:

• Partnership

• Limited liability partnership (LLP)

• Co-operation / joint venture agreement

At Saracens we will be able to advise you from the outset of a venture to determine which type of entity is most appropriate for the business you intend to pursue. Our team of solicitors are experienced in facilitating discussions between the relevant parties to agree the most suitable business structure. We will evaluate your commercial objectives and consider these carefully when advising you of the options.

One of the main advantages of a limited liability company / limited liability partnership is that a separate legal entity is created which has the power to enter into contracts whilst limiting the liability of those involved. Where participants are keen to limit their overall liability, it is often sensible to opt for one of these structures. Whilst a partnership agreement is easier to terminate, the partners may not able to limit their liability. This is often a major consideration for parties wishing to create a joint venture.

Depending upon the nature of the joint venture and your particular requirements, Saracens can draft an agreement which clearly sets out the purpose of the project and governs the relationship between the contracting parties. We will consider issues such as financial contributions, decision making and exit provisions.

We appreciate that not all businesses / ventures are successful and that disputes can arise in the future. By taking a realistic approach, we will advise you of the potential problems to ensure you are well placed to deal, should the need arise.

We do offer litigation advice but pre-emptive measures are far less stressful not to mention cheaper.

Contact us to discuss your requirements.