In order to terminate a joint venture, the following conditions must be met: the determination of the creation of a joint venture is usually done on a case-by-case basis and depends on the facts of each company. However, a valid joint venture contract or contract is usually more than sufficient to prove the existence of a joint venture. In general, the courts will take more account of the intention of the various parties to exercise control of the transactions than they will take into account their economic interest in the project. The joint venture may use assets such as intellectual property or IT held by the outgoing party. It is worth considering how the joint venture will operate without these assets or whether there are viable alternatives. If there are no reasonable alternatives, contracts must be entered into with the outgoing party as part of the withdrawal in order to ensure the continuation (for example. (B) transitional arrangements, whether long-term or for an appropriate period of time). Of course, these agreements will have a cost that should be taken into account in withdrawal negotiations. However, some courts have indicated that it is not necessary to notify each member of a joint venture of the notification of liquidation. However, a joint venture will remain even after its dissolution if a joint venture is to pay damages for each joint venture activity. As a result, the members of the joint venture are jointly liable for injuries sustained by third parties as a result of negligence resulting from their mutual commitment. Members of the joint venture may be sued individually and held liable for damages caused by a joint venture. We are often asked to advise on the most important issues that need to be considered when a party is considering terminating a joint venture.
In most cases, the activity of the joint venture continues and a part simply acquires the entire joint venture and leaves alone, on the basis that the interests of any of the parties cannot be served if the transaction is dissolved and the assets are liquidated or if a sale is imposed on the parties. From this point of view, we have drawn up the following list of the first ten reflections. The key factors will naturally vary depending on the structure of the joint venture. In the oil and gas sector, for example, contractual joint ventures are on the agenda, so the recitals will deviate from the following recitals. If the termination of a joint venture occurs in circumstances where a party continues to operate, it does so with increased risk and, ultimately, only the risk of failure. A full and thorough risk assessment of the joint venture should be carried out and steps should be taken to reduce the risk of the business to an appropriate level, which could lead to the search for a new partner. However, in the event of outstanding debts or debts, they are likely to be deducted from the party`s distributions during the resolution phase. Finally, a party to a joint venture may be terminated prior to the dissolution of the project if it has refused to meet its obligations. A joint venture may be terminated in the following cases: after dissolution, a surviving joint venture is entitled to ownership of the joint venture and also has the right to cease its activities.