Joint Ventures and the new Civil Code – the devil is in the details… – Buzády & Udvari Law Firm
Typically, a Joint Venture (JV) is based on the belief by two partners that they can reach a win-win situation: One of the parties brings its capital and business connections to the marriage; the other provides its labour force, professional-technical know-how, etc. The key to successful cooperation within a Joint Venture is the use of appropriate contracts and agreements that are balanced, legally reliable, and reflect the economic situation of the parties. Such pillars include the Joint Venture Agreement, the Articles of Association of the Hungarian JV company, and various vertical agreements including, for example, supply agreements, know-how transfer or licence agreements. The new Civil Code, effective as of 15 March 2014, sent significant waves through this system of “checks and balances”, thereby necessitating the re-adjustment of existing legal and business arrangements.
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