NEWSLETTER-2017

30 NEWSLETTER 2017 Features of Joint Venture Contract* Att. Tuna Colgar Introduction In cases where the means of an individual establishment is not sufficient due to the volume or technical features of the commercial operation that is planned, need for cooperation arises in order to carry such a commercial operation. Partnerships that are formed as joint ventures are frequently encountered in infrastructure projects, as well as in the transportation, energy and construction sectors. Particularly, companies are willing to participate in wide-ranging investments by combining forces under the structure of joint ventures and joint projects which makes for stronger investments by using each other’s specialties and the strength realized through financing together. In doctrine, a joint venture is defined as an “ Aggregation of more than one natural or legal entity which are independent from one an- other legally and financially, under a contract, in order to conduct a work or a continuous operation by establishing a commercial co- operation or without the existence of such cooperation, and to gain profit, by undertaking joint and several liability for the risks of that operation. ” 1 As is clear from the definition, above, two kinds of joint ventures are utilized in practice: “ Contractual Joint Ventures ” and “ Capital Contribution Joint Ventures .” In the model of Contractual Joint Ven- tures, a relationship only consists in a contract of law of obligation stipulated between the parties; there is no need for the presence of a commercial company with a legal entity, and the participation share deeds of the partners are sufficient. On the other hand, in the model * Article of October 2017 1 Prof Dr. Nami Barlas, Contractual Relations Based on Ordinary Partnership, 4th Edition, İstanbul, 2016, p. 284.