Fix issue in the Joint Venture Agreement

Aug 6th, 2022
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Upon dissolving a joint venture, the parties will split the assets and debts in ance to their agreement. In the absence of an agreement, the parties will get back what assets they contributed. If, however, the parties do not retake possession of certain assets, such assets should be sold.
If the JV does fail, it is in neither partys interest for assets to be locked up while lengthy litigation ensues to determine financial severance. Mediation or commercial negotiation are often the speediest and most sensible ways of arriving at terms on which the JV can be divided up.
Always put a contract amendment in writing and make sure both parties sign and date it. Reference the title of the contract, if applicable; its original parties; and original signing date, so that it is clear what document you are amending. Attach the amendment to the original contract.
Once its signed, much like any other contract, the parties are bound to abide by it. Joining forces with another company as part of a joint venture is only part of the process of getting operations underway.
Problems are likely to arise if: the objectives of the venture are unclear. the communication between partners is not great. the partners expect different things from the joint venture. the level of expertise and investment isnt equally matched. the work and resources arent distributed equally.
The level of commitment/input each party is expected to contribute to the business being unclear. The diversion of business by one party away from the joint venture into a separate business. Disputes over the future direction of the business (such as whether to acquire a new business or expand into another sector).
After a joint venture agreement has been signed, a change in events or in the parties intentions can necessitate an amendment to the agreement. If all of the parties agree to the change and sign additional documents, any term in the existing agreement can be amended.
The first condition to be satisfied before the final step towards a JV termination agreement is the terminating party should have consented to the same. That consent should be free of undue influence, threat, or fear. Secondly, consent must be communicated adequately to the other party explicitly.

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