When two business want to begin a joint venture, they will often start with a Letter of Intent. One important aspect of the Letter of Intent is having a clear statement to not be bound until the Joint Venture Agreement has been signed by both parties. Courts have held conduct by the parties involved and oral communications as the basis for an agreement even when a written agreement has not been signed. And so, without an express statement of non-biding intent, preliminary collaborations and even off-hand utterances may undermine your goal of being bound only by the Joint Venture Agreement.

With the high costs of litigation, don’t resolve the unintended consequences of a mishandled negotiation with another business; have your intentions clearly stated in a well-drafted Letter of Intent.

Visit our website today to make sure your interests are protected before beginning a joint venture.