Joint Venture

From LawDepot Law Library

Definition of "Joint Venture"

A Joint Venture is a business arrangement where two or more individuals or entities work together for a single purpose and often for a limited time. It allows members to share development costs and resources to create synergies and become more competitive economically, but without becoming liable as general partners for the actions of fellow members.

However, where the business relationships between the members of a joint venture become too close, and revenues are intermingled, the entity may resemble a partnership and will risk incurring the "joint and several" liability that is typical of a partnership. Although all members of a joint venture usually have a view to profit, they do not necessarily pool their profits and losses. Joint ventures are commonly used between a local and a foreign company to facilitate the entrance of a domestic business into a foreign market and vice versa.

Joint Venture Resources

• LawDepot's Automated Joint Venture Agreement
• Business Types FAQ - General information on various business types.