Joint Ventures: Exits And Terminations

This article presents the exit and termination provisions that may assist parties in the event an investor/member in a joint venture is looking to exit or terminate their relations.

Joint ventures are typically flexible business organizations that respond to market conditions and other circumstances. However, as time passes and situations change, parties to a joint venture may no longer have the same goals and share the same strategic interests. For example, one party may have a difficult time performing their responsibilities due to financial difficulties or operational difficulties. In the case that the parties' motives, goals, and strategies change it is vital to have a well-crafted termination and exit provision within the joint venture agreement.