Restraints on Alienation: An Examination of Joint Venture Interests
Article from: OGEL 5 (2013), in Roundup of Articles
A participant in an unincorporated joint venture generally acquires a percentage interest in the joint venture assets, which is made up of both proprietary and contractual rights. Joint venture agreements commonly include a restriction on assignment clause which provides that joint venture interests may not be assigned to a third party without the consent of the other participants. The purpose of these restrictions is ideally, to prevent the entry of potentially unsuitable participants to the joint venture. This paper will examine how such a contractual restraint is reconciled with the ...