What is the difference between a joint venture and a partnership?

A joint venture and a partnership are similar in that both involve two or more parties working together for a common purpose. However, there are some key differences between the two. The main difference between a joint venture and a partnership is that a joint venture is a temporary agreement executed for a specific purpose, while a partnership is an ongoing relationship. For example, if two companies were to enter into a joint venture to develop a new product, then when the product is released and the companies are no longer working together, the joint venture ends. The partnership, on the other hand, would remain in effect until it is terminated by one of the parties involved. In California, joint ventures must adhere to the laws set forth in the California Corporations Code, the Corporate Code, and other related laws. Partnerships, however, are subject to the laws set forth in the Uniform Partnership Act. The UPA provides detailed guidelines that must be followed in order to ensure the partnership is legal. Additionally, joint ventures may give rise to a separate legal entity and be governed by a contract. Partnerships, however, are not separate from the partners and are governed by a partnership agreement, which differs from a contract. Lastly, when a joint venture ends, the parties must unwind their relationship and resolve any remaining disputes. A partnership, however, continues until the agreement is terminated. In summary, a joint venture and a partnership are similar agreements that involve two or more parties working together for a common purpose. However, there are some key differences between the two, including the way they are governed and the way they are terminated.

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