Polling day is fast approaching in the election and with it there may be a dilemma for Ed Miliband. Many commentators have already considered the issue in great detail, which is that Mr Miliband may have to form an alliance with the SNP in order to get into power.
At the grilling in Leeds last week, Mr Miliband stated quite categorically that there would be no alliance with the SNP. Other labour party members have been more pragmatic.
Mr Milliband is certainly right to be cautious with whom he forms an alliance. In law we tend to talk of alliances as joint ventures or co-operation arrangements, far more formal than the term “alliance” of course, but the same basic considerations hold true in law as in politics – I think.
At the heart of any “alliance”, must be trust. This is true of personal relationships as well as business relationships and if you feel a tendency to check your partner’s mobile phone on occasion then you know that trust could be an issue.
Running alongside trust is confidence. In general its confidence in your partners ability to build a business arrangement with you. Do you believe that they have complimentary skill sets and the same commitment to grow a business with you? Will your business partner stop you from doing what you believe will be best for the joint business? I do not pretend to be a psychologist but I suspect there could be a slight breakdown in the working relationship if you’re working at the grind stone till late into the evening when your business partner has left early to watch the daily instalment of Neighbours, not that I am criticising Neighbours - those of us that went to University in the eighties made sure that we left what ever we were doing, which was probably not much, to watch it!
Another key factor is the personal relationship between the parties. If you know that you will feel the slightest irritation with your business partner over something relatively mundane then you know that this may not be the business partner for you.
These are very basic factors to consider but they are fundamental in evaluating whether to form a joint venture and to move to the next stage of negotiating the terms of the arrangement.
The author is Christian Browne who is the Managing Director of Summerfield Browne Solicitors (www.summerfieldbrowne.com). Christian Browne is also a legal advisor with the Institute of Directors.
