Santa Ana California Joint Venture Disputes

The State of California defines a joint venture as an “undertaking between two or more people that are jointly carrying out a single business enterprise for profit.” Essentially, when two or more people come together to combine their expertise, skills, knowledge, property, and finances to develop a single business enterprise for profit, they have developed a joint venture.

If you are experiencing a serious dispute with any of your partners regarding a joint venture, it may affect the business enterprise. You need to immediately implement measures to safeguard and secure the business interests of the joint venture that you have worked so hard to create.

Elements of a Joint Venture

Members of a joint venture must all have discretionary control and authority with respect to business matters, share in the profits and have ownership in the business. The intention of the parties is significant in the formation of a joint venture, and oftentimes there is evidence that the parties were not all on the same page about whether they were creating a joint venture. The State of California requires minimal amounts of formality with respect to the creation of a joint venture, and oftentimes, this creates disagreements among those who initially started the business.

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JOINT VENTURES VS. PARTNERSHIPS

Typically, a joint venture involves one solitary business transaction, and a partnership involves a continuity of business working without a fixed end. Joint ventures generally allow the parties involved to have an equal right to direct and govern the business enterprise and the right to be heard regarding both management and control. However, the distinctions are not so boldly apparent in many cases. Oftentimes, courts in the State of California look to partnership law when disputes arise regarding joint ventures. The complexity of disputes arising in joint ventures cannot be overstated. If you are struggling with some aspect of your joint venture, you need strong legal representation to ensure that your legal rights and your investments are protected.

Contact an Experienced California Business Attorney

If you are facing a dispute with your business partners regarding a joint venture, or any type of business dispute, contact an experienced business attorney at Blake & Ayaz today at 714-667-7171 or visit us online to schedule a free consultation.

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