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PLAYBOOK TEMPLATES
Joint Venture Agreement
A Joint Venture Agreement defines the governance, contributions, and profit sharing between co-venturing entities. This playbook examines dispute resolution, management control, and exit provisions.
Dispute Resolution
Negotiation strategy
Ensure the governing law is a neutral jurisdiction. Specify arbitration as the method of dispute resolution, using recognized rules (e.g., ICC Rules). Define the location and language of arbitration.
Negotiate for a jurisdiction and rules that maintain neutrality and efficiency. Consider proposing alternative arbitration rules if necessary.
Essential elements
1
Governing Law
Law applicable to the agreement.
2
Arbitration
Method for resolving disputes.
3
Jurisdiction
Court authority for enforcement.
Action framework
ACCEPT
Propose edits to ensure neutrality and efficiency in the dispute resolution process.
EDIT
Reject clauses that specify biased jurisdictions or inefficient procedures.
ADD
Add clauses to establish clear arbitration rules and confidentiality.
PRO TIP
Always ensure the dispute resolution process is aligned with company policy and past practices.
Example clauses
FAVORABLE
Preferred Dispute Resolution Clause
"The Agreement shall be governed by and construed in accordance with the laws of [insert neutral jurisdiction], without regard to its conflict of laws principles. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the [insert name of arbitration rules, e.g., International Chamber of Commerce (ICC) Rules]. The arbitration shall be conducted in [insert neutral location], and the language of the arbitration shall be [insert language]."
NEUTRAL
Fallback Dispute Resolution Clause
"If the counterparty insists on a different jurisdiction or rules, negotiate for a compromise that maintains neutrality and efficiency."
UNFAVORABLE
Biased Jurisdiction Clause
"The Agreement shall be governed by the laws of [insert biased jurisdiction], with all disputes resolved in [insert biased location]."
Fallbacks
High-Risk Projects
For high-risk projects, ensure the dispute resolution process includes expedited procedures to minimize potential delays.
International Contracts
In international contracts, prioritize arbitration rules that are widely recognized and enforceable across borders.
Small-Scale Agreements
For small-scale agreements, consider simplified arbitration procedures to reduce costs.
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