I am just entering into a joint venture with a number of other people. I am only bringing my expertise to the project where another participant is putting in a lot of the capital. Does that mean he gets to control the project?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by LegalEagle™ staff, Camden NSW 2570
- The participant who is contributing the larger amount of capital upfront may argue that they have the right to control how the project runs.
- It is important that before you sign any contract you make sure that everyone involved agrees on the aims of the project, the outcomes you expect from it and the roles and authority of each of the participants. You should also make sure you have a firm understanding and agreement on how the risks and benefits of the project are to be shared at each stage.
- These details will be different for every project. It is a good idea for everyone involved to have independent legal advice to ensure that you all thoroughly understand the contract you are entering into.