A joint venture is a relationship between two or more people who combine their labor or property for a single business undertaking. They share profits and losses equally, or as otherwise provided in the joint venture agreement. The single business undertaking aspect is a key to determining whether or not a business entity is a joint venture as opposed to a partnership.
A joint venture is very similar to a partnership. In fact, some States treat joint ventures the same as partnerships with regard to partnership statutes such as the Uniform Partnership Act. The main difference between a partnership and a joint venture is that a joint venture usually relates to the pursuit of a single transaction or enterprise even though this may require several years to accomplish. A partnership is generally a continuing or ongoing business or activity. While a partnership may be expressly created for a single transaction, this is very unusual. Most Courts hold that joint ventures are subject to the same principles of law as partnerships. The duties owed by joint venturers to each are the same as those that partners owe to each other. For example, partners have a duty of loyalty to one another, and joint venturers would also have the same duty.
A Joint-Venture Agreement to Develop and Sell Real Property Between Individual and Corporation is a legal contract between two or more parties to collaborate on a project involving the development and sale of real property. This type of agreement is typically used when one party has the resources and expertise to develop the property, while the other party has the capital to finance the project. Depending on the situation, the joint-venture partners may share the profits of the project, or the individual partner may receive a share of the proceeds from the sale. The two main types of Joint-Venture Agreement to Develop and Sell Real Property Between Individual and Corporation are a Joint-Venture Agreement for a Single Project and a Joint-Venture Agreement for a Series of Projects. A Joint-Venture Agreement for a Single Project is an agreement between the individual and the corporation to develop and sell a single property. This agreement is typically used when the individual has the expertise to develop the property but needs the financial assistance of the corporation. A Joint-Venture Agreement for a Series of Projects is an agreement between the individual and the corporation to develop and sell multiple properties. This type of agreement is more common when the individual and corporation are seeking to build a portfolio of properties. The joint-venture agreement should include the roles and responsibilities of both parties, the timeline for the project, the amount of capital to be contributed, the allocation of profits, and the termination process. It is important to ensure that the agreement is in writing and signed by both parties.
