Guidance from experienced corporate and commercial lawyers from
the start of a business relationship can prove beneficial in more
ways than one. Effective documentation is helpful because it sets
the ground rules of the relationship in clear terms which
encourages parties to work within the defined structure –
whether working together in the joint venture or disengaging in
case of a deadlock.
Introduction
A business partnership is as much about people as it is about
the business. A thorough diligence exercise to evaluate various
aspects including the business goals of the parties, working style
and work culture compatibility is essential for a joint venture to
succeed. Nevertheless, just like it is important to agree on
business plans and fundraising plans for the joint venture, it is
important to agree on a process for resolution of a deadlock
situation. Exit from the joint venture can also be a solution to a
deadlock, depending on the situation. Parties to a
