The Treatment of Unregistered Commercial Joint Ventures in Jordanian Law

Author: Bashayreh, Mohammad Hussein

Source: Arab Law Quarterly, Volume 23, Number 1, 2009 , pp. 59-103(45)

Publisher: BRILL

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Abstract:

Joint ventures are common in Jordan, especially in the construction sector. Local firms and foreign entrepreneurs use them for different legal and competition considerations. However, joint ventures are not regulated as such, hence their disputable legal characterisation. Jordanian courts treat commercial joint ventures as valid companies with juridical personalities regardless of incorporation formalities. Courts apparently take this as a rule of law. Relevant cases reveal inconsistency and are not wholly consonant with the law. While judicial creativity may be classifying joint ventures as companies sui generis, this article seeks to establish that this is incorrect. The nature of a joint venture should rest on the underlying agreement, which may envisage a general partnership, a silent company, or another scheme. Existing legislations are satisfactory as this article explains. Accordingly, the judicial approach should be abandoned to avoid current uncertainties and to attain predictability of consistent legal solutions.

Keywords: JOINT VENTURE; JORDANIAN LAW; LEGAL CHARACTERISATION; COMPANY LAW; CIVIL CODE; CONTRACTUAL COOPERATION SCHEME; CO-OWNERSHIP; JOINT LIABILITY

Document Type: Research article

DOI: http://dx.doi.org/10.1163/157302509X395641

Affiliations: 1: Faculty of Law, Yarmouk University, Irbid, Jordan

Publication date: 2009-02-01