A legal clause defines the material law applicable to the interpretation of an agreement (i.e. the legal rights and obligations of the parties). It does not determine how to resolve disputes. Finally, you are not afraid of an approach that does not solve the problem. Not all disagreements within the board are so fundamental that the company should go into the prison cabinet of termination. For more information on joint ventures, check out our guide: How To Structure A Joint Venture That`s Geared Up For Success. With regard to the establishment of an AIC, it is advisable to establish a written agreement in the form of: a joint venture may fail in the initial phase. B, for example, if the partners are unable to agree on one or more essential conditions for the completion of the joint venture agreement, or, in extreme cases, a joint venture will fail even before the AIC is finalized and some are accused of breaching the bargaining obligations. Faithful. International arbitration is well suited to resolving JV disputes. There is no need to deviate from the standard referee`s practice. However, such litigation poses a number of practical and legal challenges that arbitrators, lawyers and parties must consider. The representation of interests in JV arbitration requires a commercial and cultural understanding, because the history of a joint venture is the history of an international company.
Counsel must be good “storytellers” capable of providing context and structure to a relationship that may have lasted many years. It also implies a certain appreciation of the personalities involved and their psychology. Consultants and arbitrators need to understand the sector and have a head for the numbers. Since damages are often only part of the appeal sought, legal assistance and arbitrators may be required to find and develop appropriate remedies. These may include, for example. B, a share transfer or a sale of the company. Only then will arbitration also resolve the dispute between the parties. Jim is the co-founder of Water Street Partners, where he serves a global client base in the oil and gas, mining and chemicals, high-tech and industrial manufacturing sectors. He has supported more than 200 joint operations and restructurings and has been very interested in governance, organization and business issues.
As noted above, a joint venture includes parties who unite to cooperate for many reasons. Some examples of the forms that a joint venture can take are: as JVs take different forms and are formed in a number of industries, it is not always easy to count them in the statistics of arbitration institutions. [12] However, it is clear that litigation involving joint venture projects is an important part of international arbitration worldwide – the London International Arbitration Tribunal announced in 2016 that 21 per cent of disputes settled under its rules came from shareholders, share purchase agreements or joint venture agreements. The Arbitration Institute of the Stockholm Chamber of Commerce found that litigation related to enterprise and partnership contracts in 2016 accounted for 15 per cent of new cases, up from 13 per cent in 2013. The Joint Enterprise Dispute Settlement Bulletin does not report any litigation as a joint venture, but notes that a quarter of all files opened in 2015 are due to construction and engineering projects and 18% to energy disputes. [13] These are areas where JVs are commonplace. This module examines the various options for resolving disputes and what to do in the event of termination. If you find yourself in a situation where a joint venture has erupted, despite the best efforts of the parties to the dispute, you should seriously consider dealing with alternative disputes or out-of-court dispute settlement or out-of-court litigation settlement; especially the mediation process to try to reach an agreement in which one party buys back the other or shares the business between you.
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