- Temp Worker Injuries Sure To Get The OSHA FisheyePosted 14 hours ago
- Trademark Lunacy, Acronym Fever, Over Big Mac BrandPosted 14 hours ago
- A Primer On Cloud SecurityPosted 4 days ago
- Ransomware Attacks Hit Legal SystemPosted 4 days ago
- Senate Committee To Act On CybersecurityPosted 5 days ago
- Law School Grad Interested In Data Privacy, Convicted Murderer, Would You Hire Him?Posted 5 days ago
Risks of Contractual Joint Ventures for Government Contracts
- Tweet
- Pin It
-
Executive Summary of an article written by
Kay Tatum, John R. Prairie and George E. Petel, Wiley Rein LLP
Parties pursuing government contracts or grants enter into joint ventures for many reasons. But joint venture participants often are unaware of the legal implications of operating as a contractual joint venture, as opposed to establishing a separate legal entity. In many states, a contractual joint venture is treated like a general partnership. Each partner is jointly and severally liable. Consequently, in the event that significant liabilities arise because of one party’s faulty performance, the government customer may be able to recover damages from the joint venture and each joint venture participant.
By contrast, a joint venture in the form of a limited liability entity provides a layer of protection for each party.
Despite the risks, sometimes organizations conclude that they prefer doing business as a contractual joint venture rather than forming a limited liability entity. In that case, they should take care to draft a joint venture agreement that minimizes the pitfalls of a contractual affiliation. Four of the most important contractual provisions to focus on are (1) choice of law, (2) waiver of fiduciary duties, (3) statement of purpose and (4) termination.
Government contractors and grant recipients should seek to avoid entering into contractual joint ventures under the laws of states that deem the joint venture participants to be general partners with joint and several liability. If there are compelling reasons to do so, however, participants should consult with counsel to prepare their joint venture agreement so it will not create unintended liabilities.
Read the full article at:Today's General Counsel
Related Posts
-
Legal Departments Lead Industry-Wide Change
About five years ago, a group of in-house counsel...
-
How to Get the Best Legal Services
Alternative fee arrangements (AFAs) can be of benefit to...
-
Business Continuity Plan for the Legal Department
External threat, and its impact on the legal department’s...
-
Resource Alignment is a Big Law Department Challenge
Cost control was ranked as the top challenge facing...
Litigation News
-
Temp Worker Injuries Sure To Get The OSHA Fisheye
The agency’s working assumption is that temporary workers are at increased risk for work-related injury and illness, in part...
- Posted 14 hours ago
- 0
-
Old Sexual Violence Charges Won’t Derail This Career
Boxing may be one of the last big-time careers where an old sexual assault allegation – or sometimes even...
- Posted 6 days ago
- 0
-
Storing Biometric Info In Illinois Just Got Riskier
A client alert on the Clark Hill firm’s site discusses a recent Illinois Supreme Court decision concerning the state’s...
- Posted 6 days ago
- 0
-
Make the Most Of Your Relationship With Outside Counsel
"The message of the survey results is quite compelling: Clients should ask for and expect to receive better and...
- Posted 2 weeks ago
- 0
Labor/Employment News
-
In Many States, Minimum Wage Is Going Up
A breakdown on states impacted by new minimum wage requirements for 2019. The highest is in the District of...
- Posted 1 month ago
- 0
-
How a No-Rehire Agreement Unraveled
Settlement agreements with employees often contain a “no-rehire” clause, stating that the employee waives the right to any future...
- Posted 2 months ago
- 0
-
#MeToo and Federal Law: Will the Courts Ever Catch Up?
Despite #MeToo’s global impact, the current state of American law is clearly at odds with the cultural changes #MeToo...
- Posted 2 months ago
- 0
IP News
-
Trademark Lunacy, Acronym Fever, Over Big Mac Brand
Hmm Daily notes that the Operations Department of the Cancellation Division of the European Union Intellectual Property Office (EUIPO)...
- Posted 14 hours ago
- 0
-
Four Years After Alice, Software Patents Making a Comeback
Since being sworn in as the new director of the USPTO in February, Andrei Iancu has led the charge...
- Posted 2 months ago
- 0
-
Software Patents Still Valuable After Alice: A Case Study
The Supreme Court’s Alice decision in 2014 raised the bar for patent eligibility, with a two-part test that led...
- Posted 2 months ago
- 0