JV exit terms: what happens if it doesn't work
The exit scenarios a JV agreement should cover before they're needed.
A well-structured Nigerian JV agreement covers exit terms for scenarios such as one party wanting out early, a developer failing to deliver, or a project stalling for external reasons, agreed before construction starts rather than negotiated under pressure once a problem has already occurred.
Exit terms are the part of a JV agreement most often skipped, usually because neither party wants to plan for the deal not working while they're still optimistic about it.
Scenarios worth covering upfront
- One party wanting to exit before completion.
- A developer failing to deliver on agreed terms.
- A project stalling for reasons outside either party's control, such as funding or regulatory delay.
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Check Compliance For FreeQuestions people also ask
What happens if the developer runs out of funding mid-project?
This is exactly the kind of scenario exit terms should cover before it happens, ideally the agreement specifies what happens to the landowner's position and any work completed if the developer can't finish funding the build.
Why write exit terms in before the deal even starts?
Exit terms are the part of a JV agreement most often skipped, usually because neither party wants to plan for the deal not working while they're still optimistic about it, agreeing them upfront means they're negotiated calmly rather than under pressure once a problem has already occurred.
Does one party wanting out early count as an exit scenario worth planning for, even if nothing's gone wrong?
Yes. A change of circumstances on either side, not just a failure to deliver, is one of the core scenarios worth covering in the agreement from the start.
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