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Joinder Agreement
I need a joinder agreement for a new partner joining our existing partnership, ensuring they agree to all current partnership terms and conditions, with specific emphasis on their financial contributions and profit-sharing arrangements. The agreement should also outline their responsibilities and include a clause for dispute resolution.
What is a Joinder Agreement?
A Joinder Agreement lets new parties formally join an existing contract or legal arrangement under Swiss law. Think of it as a legal "add-on" that brings additional participants into agreements like shareholders' pacts, investment deals, or consortium arrangements - without having to draft an entirely new contract.
These agreements are especially common in Swiss M&A transactions and joint ventures, where timing and flexibility matter. They save time and resources by extending existing terms to new parties while maintaining consistent rights and obligations. Swiss courts generally enforce them as long as they meet basic contractual requirements and don't violate mandatory corporate law provisions.
When should you use a Joinder Agreement?
Use a Joinder Agreement when bringing new investors or partners into an existing Swiss contract structure, especially in fast-moving deals where redrafting the entire agreement isn't practical. It's particularly valuable during M&A transactions, venture capital rounds, or when adding members to consortiums or joint ventures.
The timing is crucial: draft the Joinder Agreement before new parties need to participate in key decisions or receive benefits under the main agreement. Swiss corporate law requires clear documentation of all parties' rights and obligations, making these agreements essential for smooth transitions and proper governance. They're also vital when expanding shareholder agreements or investment syndicates.
What are the different types of Joinder Agreement?
- Basic Shareholder Joinder: For adding new shareholders to existing agreements - includes standard rights, obligations, and voting provisions under Swiss corporate law
- Investment Round Joinder: Tailored for venture capital or private equity deals, with specific provisions for capital contributions and investor rights
- Consortium Joinder: Used in joint ventures or construction projects, focusing on operational responsibilities and risk allocation
- Employee Participation Joinder: Adapts existing agreements for employee stock ownership plans, including vesting schedules and transfer restrictions
- Merger Integration Joinder: Specifically structured for post-M&A integration, aligning new entities with existing contractual frameworks
Who should typically use a Joinder Agreement?
- Corporate Legal Teams: Draft and review Joinder Agreements to ensure compliance with Swiss corporate law and existing contractual frameworks
- New Investors: Sign these agreements when joining existing investment rounds or shareholder structures in Swiss companies
- Board Members: Review and approve Joinder Agreements for new participants, ensuring alignment with company interests
- External Counsel: Provide specialized advice on structuring and implementing these agreements, particularly in complex transactions
- Company Secretaries: Maintain official records and ensure proper execution of Joinder Agreements within Swiss governance requirements
How do you write a Joinder Agreement?
- Original Agreement Review: Obtain and analyze the complete existing agreement to understand all rights, obligations, and restrictions
- Party Information: Gather detailed corporate details of new joining parties, including registration numbers and authorized signatories
- Consent Requirements: Check if existing agreement requires approval from current parties for new joiners
- Swiss Compliance Check: Verify alignment with Swiss corporate law requirements and any industry-specific regulations
- Document Structure: Our platform generates precise Joinder Agreements that automatically include all required elements under Swiss law
- Signature Protocol: Prepare signature blocks and determine proper execution sequence for all parties
What should be included in a Joinder Agreement?
- Identification Section: Full legal names and details of all parties, including the original agreement being joined
- Accession Declaration: Clear statement that new party agrees to be bound by original agreement terms
- Rights and Obligations: Specific outline of what the joining party receives and must perform
- Effective Date: Precise timing of when the joinder takes effect under Swiss law
- Governing Law: Explicit reference to Swiss law jurisdiction and enforcement
- Signature Requirements: Proper execution blocks meeting Swiss formal requirements
- Existing Party Consent: Documentation of any required approvals from current parties
What's the difference between a Joinder Agreement and a Collaboration Agreement?
A Joinder Agreement differs significantly from a Collaboration Agreement in both purpose and structure. While both documents govern relationships between multiple parties under Swiss law, they serve distinct functions in business arrangements.
- Primary Purpose: Joinder Agreements add new parties to an existing agreement, while Collaboration Agreements create fresh partnerships between independent entities
- Timing of Use: Joinder Agreements come into play after an original agreement exists, whereas Collaboration Agreements establish new relationships from scratch
- Scope of Terms: Joinders typically adopt existing terms without modification, while Collaboration Agreements require negotiation of all terms between parties
- Legal Framework: Under Swiss law, Joinders must align with the original agreement's terms, but Collaboration Agreements can establish entirely new legal frameworks
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