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.