Joint venture

A term used loosely to refer to a wide variety of legal arrangements in which one or more parties combine their resources for some limited purpose, for a limited time, or both. It is not a distinct form of business organization, nor a relationship that has any precise legal meaning. A joint venture may be established, for example, by a contract in which the joint venturers agree that they will do certain things to carry out their common purpose; by two people carrying on business together, in which case the joint venture is a partnership; or by two people forming a corporation to carry out their common purpose. While the legal consequences of a joint venture that is a corporation or a partnership are clear, the legal consequences of a joint venture relationship that is not a partnership or a corporation are not.