Joint Ventures: A Summary of Legal Strategies and Tactics in New York
The complexities of joint ventures can be daunting if you’re not knowledgeable on the various legal strategies and tactics involved2 min read
The complexities of joint ventures can be daunting if you’re not knowledgeable on the various legal strategies and tactics involved. Whether you’re strictly a business operator or legal counsel of one, you need to be informed on the latest developments in joint venture law and the best practices for ensuring successful venture exchanges. Knowing that, this article presents a summary of joint venture law in New York, and the strategies, tactics, and considerations that should be taken into account when setting up a joint venture in the state.
What Is a Joint Venture?
A joint venture (JV) is an agreement between two or more parties (like companies, individuals, or a cooperative) to combine resources (financial and other) with the objective of achieving a common goal. This type of arrangement contrasts with other business models like strategic alliances, where resources are shared without a common objective, or long-term contractual agreements, wherein there is no shared goal.
Joint ventures offer benefits for the parties involved. They open new set of opportunities for companies who can leverage their resources to unlock new markets. On the other hand, individuals may benefit from the added access to resources and enhanced working capacity. As such, JVs are appealing for both strategic and financial reasons.
Strategies for Entering Into Joint Ventures in New York
Joint venture law in New York is based on the New York General Obligations Law (§ 5-703). According to the law, a JV is considered a separate entity that has the capacity to enter into contracts, sue, and be sued. This means that all entities involved in the JV will need to enter into contracts that clearly delineate the roles and responsibilities of each member.
In addition to careful contract negotiation, several safeguards should also be put in place. This includes extra insurance and surety agreements, as well as indemnification, hold harmless and assignment/release clauses. Such provisions protect every party in the venture in the event of any unforeseen disputes or losses.
Because of the laws and complexity surrounding JVs, it’s usually beneficial to seek out an experienced attorney when setting up a JV in New York. If you’re looking for legal counsel that understands local regulations, UpCounsel can help. With a network of experienced attorneys from small businesses up to the Fortune 1000, UpCounsel has the capability and expertise to provide high quality, cost-effective legal services. Their profiles highlight client ratings and reviews of the lawyers’ work, giving you a good indication of who is suitable for your needs.
Final considerations
The complexities of joint venture law in New York can be difficult to navigate. However, with the right legal counsel and strategies in place, you can successfully set up and manage an effective JV. From the initial contract negotiation to additional insurance agreements,lawyers from UpCounsel have the expertise and experience to walk you through the entire process.
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