Joint Ventures in Albanian Law: Legal Foundations and Practical Challenges

Abstract

The main sources of obligations in the Civil Code of the Republic of Albania are the law and the
contract, with the latter occupying a dominant position. This is due to the fact that the contract serves as the
most important legal instrument for the realization of the interests of the parties and, at the same time, is the
most comprehensive manifestation of the principle of autonomy of will, which is a fundamental principle of
civil law.
In accordance with the provisions of the Albanian legislation, the Civil Code defines a contract as a legal
act by which one or more parties undertake to establish, modify or terminate a legal relationship. A typical
example of a multi-party contract is a joint venture.
In the context of Albanian legislation, a joint venture is considered as a type of cooperation or partnership
between entities (which may be individuals or companies) to carry out a joint economic activity with the aim
of sharing resources, risks and profits. Although it includes elements of the organization of joint activity, the
simple partnership does not have legal personality, being classified by the Civil Code as a contractual
relationship and not as an independent legal entity. This form of organization differs from those regulated by
the Law on Commercial and Trading Companies, which establishes legal entities with separate legal
personality.
The members of a joint venture are required to contribute money, assets, or services to the partnership,
which constitutes their contribution. This contribution is presumed to be equal, unless the contract provides
otherwise.