Definition of Joint Venture-
A joint venture is a legal structure that takes the form of a short term partnership in which the persons together undertake a transaction for mutual profit. Generally, every person gives to assets and share hazards. Like a partnership, joint ventures can include any type of business transaction and the "persons" required can be individuals, groups of individuals, companies, or organizations.
Joint ventures are also generally used by companies to get entrance into foreign markets. Foreign companies form joint ventures with domestic companies already existing in markets the foreign companies would like to enter. The foreign companies usually bring new technologies and business practices into the joint venture, while the domestic companies already have the connections and important government documents within the country along with being protected in the domestic industry.
Legal type of joint venture-
Joint ventures are considered as normal partnerships. Normal partnerships starting from bringing together more than one person to realize their common goal do not have legal personality. Therefore, although joint ventures may be taxpayers inside the field of Corporate Tax, they do not have legal entities.
Since joint ventures are viewed as ordinary partnerships except otherwise allowed in the joint venture agreement, the problems between them are subject to 520 et al.
A number of jurisdictional problems may begin in JV disputes. These include the range of the arbitration agreement and in particular whether it extends beyond the principal contract to ancillary contracts, and to non-signatories such as different companies in a group of companies.
Sometimes a respondent will reject the Arbitrary of a dispute. This may happen where contractual claims are connected to statutory claims or local law matters, such as bankruptcy. State entities often rely on statutory constraints under local law to avoid accountability to their contractual partners.
Suing the Joint venture Violation-
Choose a lawyer-
If a decision cannot be reached by complying with the joint venture agreement, or if some arguments need to be managed outside of the contract's terms, you might need to file a lawsuit to settle the alleged violation. If you are thinking of filing a lawsuit, understand that you will be suing your joint venture partner, which will likely permanently alter your relationship and ability to do business together. However, in some situations, it may be your only option. Before you bring a lawsuit, you need to hire a Thelegalbank’s qualified lawyer to help you.
Draft the complaint-
A complaint is the lawful legal document that starts a lawsuit. Your complaint will need to be drafted in accordance with the local laws of the court you will be filing in. Depending on the specifics of your case (i.e., where each party is from and how much you are watching to recover in damages), you might file in either state or federal court. Talk to our attorney to decide where you should sue. Regardless, although, every complaint will have to contain at least the following information-
File your complaint-
After your complaint has been drafted by your lawyer, you will get it to the courthouse and file it with the clerk of courts. You will usually require to file your original plus at least two copies. At the time of filing, you will also need to pay a filing fee (usually around $350) or ask for a fee waiver. Once the filing fee is paid or waived your complaint will be stamped as "filed" and you will be given an official civil cover sheet and summons.
Inform the defendant-
Once your lawsuit has been formally filed, you will need to inform the defendant that they are being sued. To do this, you need to give them a copy of your complaint and summons. This needs to be done within 120 days of filing your lawsuit. To completely follow the defendant, you need to have someone over the age of 18 who is unrelated to the case to complete the service.
Await an answer-
The defendant will have around 21 days to respond to a lawsuit after notice. Most defendants will respond by filing an answer, which is a formal response to all of the assertions in your complaint. Within the answer, the defendant will accept or reject all of your allegations and will raise any defences they may have. In addition, a defendant might file counterclaims if he or she understands you have breached the joint venture contract.
Take part in the process-
One of the most important parts of litigation occurs soon after the complaint and answer are exchanged. During discovery, you and the defendant will have a chance to exchange information in order to prepare for trial. You will be ready to talk with witnesses, gain access to documents, see what the defendant plans on saying at trial, and see how strong your case is. In order to completely take part in the discovery, you will be able to use the following tools:
Defend against a motion for summary judgment-
As soon as the process concludes, the defendant will likely file a motion for summary judgment. In order to succeed, the defendant will have to convince the judge that there are no genuine issues of material fact and they are entitled to judgment as a matter of law. In other words, the defendant will have to persuade the court that, even if it made each factual opinion in your favour, you would still lose the case.
Attempt to settle-
If you have done it past the summary judgment stage of litigation, you are getting close to a trial and you might want to examine settling. Trials are costly and time-consuming efforts and even if you win, you might not get sufficient money to recover the costs of litigation. Therefore, try discussing with your partner in order to try and settle the dispute amicably. If open meetings don't work, you might try mediation or arbitration.
Go to trial-
When a settlement cannot be reached at this step of the litigation, a trial is almost sure. After a trial schedule is set by your judge, you will want a jury (if you invoked your right to one) through a method called "voire dire." After a jury is empanelled, you will start the test by providing an opening declaration. The objective of your opening statement is to tell the court a story that gives some context to the trial. After each parties have created gap statements, you may present your case.
Some main benefits of joint ventures are: