http://www.polity.org.za
Deepening Democracy through Access to Information
Home / Press Office / SchoemanLaw Inc RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Verification Image. Please refresh the page if you cannot see this image.

Sponsored by

Close

Article Enquiry

Joint Ventures and their use!

Verification Image. Please refresh the page if you cannot see this image.
Close

Embed Video

Joint Ventures and their use!

8th November 2018

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Joint Ventures, more commonly known as “JV’s”, are not regulated by legislation.  To give a broad definition of a JV, it is an agreement/arrangement entered into by two or more companies to their mutual benefit. It is also often referred to as a “corporate partnership”. This, in the normal course, involves the sharing of resources, which may include capital; personnel; physical equipment; facilities and in some instances even intellectual property.

In many instances, JV’s are seen as the best way to expand a business with relatively low risk and with shared resources from another. 

Advertisement

Brief case study on Joint Ventures

In Meyer & others v Big Five Developments (Pty) Ltd (1017/17) [2018] ZASCA 136 (28 September 2018), the Supreme Court of Appeal of South Africa was faced with a question on whether the JV entered into between the parties was intertwined with elements of property development as well as the sale of land.

Advertisement

The court held that in order to be able to answer the question, it is necessary to interpret the agreement in order to ascertain the intention of the parties. 

In the above-mentioned case the parties concluded a JV in that the one party requested the development of the land and the other party having the resources and means to develop the land. The primary dispute of the JV was related to the validity and enforceability of the JV.

The parties entered into a JV to benefit from one anther relating to skills and development.  When it came to a claim to sell the developed land the Court held that the agreement did not make provision for the sale of land as the JV only provided for future sale of the land.

Why form a Joint Venture?

Seeing that JV’s are entered into by two or more businesses or individuals pooling their resources and expertise to achieve a particular goal, the best route is to enter into a JV.  The reasons for forming a JV include numerous benefits which every entrepreneur should consider, namely:

  •  the expansion of a business;
  •  gaining experience in areas individually not achievable; and
  •  development of new products or moving into new markets.

Conclusion

JV’s are meant to benefit of both/all parties entering into the agreement. Important aspects such as liability should be agreed.  In many instances JV’s are the best way to develop new products or expand your business.  Each JV entered into needs to be correctly constructed by a professional.

At SchoemanLaw Inc we can assist with your JV agreement or any contractual dispute.  Furthermore, to access a basic JV every entrepreneur can visit our website at https://www.schoemanlaw.co.za/online-legal-services/ to purchase and download a basic JV to expand and grow their services and market.

Written by Beata Warnich, Schoeman Law

EMAIL THIS ARTICLE      SAVE THIS ARTICLE ARTICLE ENQUIRY

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now
Register Close