Word of the day
The joining of two or more people in a specific business enterprise, such as the development of a con¬dominium project or a shopping center. The parties may pool their respective resources (such as money, expertise, property, or equipment). There must be an agreement, express or implied, to share in the losses or profits of the venture. Joint ventures are a business form of partnership and for tax purposes are treated as partnerships. The main difference between the two is that a joint venture is a special joining of the parties for a specific project with no intention on the part of the parties to enter into any continuing partnership relationship (a “one-shot partnership”). If the joint parties combine their efforts on several different projects, the relationship becomes more like a general partnership than a joint venture. Also, even though a partner can bind the partnership to a contract, one party to a joint-venture agreement cannot bind the other joint venturers to a contract.