Joint Venture Disputes

Konstantin Christie and Daniel Greineder

http://globalarbitrationreview.com/chapter/1036938/joint-venture-disputes

What is a joint venture?

A joint venture is not a precisely defined legal concept.1 Blacks Legal

Dictionary, for instance, defines a joint venture as a business undertaking by
two or more persons engaged in a single defined project2. Sometimes it is
unclear whether parties have entered into a JV as opposed to, for example, a
distribution agreement. This article follows that broad and non-technical view.
Often the partners will found a JVC specifically for achieving their goals. Most
JVs are based on the idea that each partner will contribute some special
know-how or experience that the other partner or partners lack, and will
benefit the cooperation as a whole.
For example, partners may enter into a JV in the following cases:

a foreign mining company cooperating with a local partner in order to explore

and exploit natural resources;

two companies pooling resources so as to benefit from economies of

scale or to develop a product that neither could afford to develop on its
own.

*it is clear that we c/n develop our own resources and if we dont assume JVA we are in danger of
starting a war with China which we c/n afford as well. By assuming JVA we can control such stipulations
that would benefit us and would protect us from undue harm and prejudice.

The JVA in turn, will be governed by the law of a particular jurisdiction, usually
chosen by the parties, as discussed above. The law may include certain rights
and remedies of stakeholders, prohibitions on self-dealing and rules of
contractual interpretation. Such provisions also determine the parties
relations and need to be considered in formulating claims.