These types of agreement are entered into between individuals or companies and usually relate to a particular project or venture, rather than a partnership agreement which is an ongoing commitment.

The common example is where an individual owns land but does not have the expertise or the experience to develop or subdivide and sell, but enters into an agreement with a land developer and a project manager for them to undertake those aspects. The agreement provides for the financial or other contributions the parties have to make, the obligations that each has, such as the developer's obligation to advance the subdivision within an agreed framework, and how the proceeds of the sale of each lot are to be distributed.

Another example would be if a party has an idea or concept to develop but lacks the required capital to advance it further. A joint venture agreement with another entity with the necessary capital can be entered into.

It is important that any joint venture agreement is properly prepared and covers all aspects of the relationship including the obligations and duties between the parties.  The agreement should provide how the parties are to communicate and report to each other, and when and how often meetings are to take place so that all the parties are kept informed as to the progress of the project.

Our contacts:
Tim Robertson Partner
Janelle Brown Partner