In what ways are joint ventures and partnerships alike?

Joint ventures and partnerships share many characteristics. A partnership where two or more individuals or entities join together for a particular "short term" purpose is sometimes called a joint venture. In a partnership or joint venture, each partner has equal ability to legally bind the entire entity. A partner can represent the whole organization in the normal course of business, and his or her legal actions on behalf of the partnership (in this case, the joint venture) create legal obligations. Example: John's Produce, Inc., and Helen's Packaging Co. form a joint venture to sell prepackaged salad kits. Helen's Packaging purchases new bag sealing equipment for the joint venture without receiving JPI's approval. The packaging company's status as a partner gives it the ability to bind the entire venture even without the other company's consent. The equipment company can enforce the purchase agreement against the entire venture because Helen's Packaging had the apparent authority to ...  more