Are there any limitations on what a joint venture can do?

Yes, there are limitations on what a joint venture can do in California. A joint venturer cannot, under California law, enter into an agreement to do something that is illegal. Additionally, any agreement entered into must have a valid purpose and must be within the scope of the joint venturers’ authority. The joint venturers must also act as “fiduciaries” to each other, meaning that they must act in the best interests of the venture as a whole and not attempt to take advantage of each other. This includes managing the joint venture’s property and assets in accordance with the agreement and avoiding conflicts of interest. If the joint venturers are entering into a contract with a third party, such as to purchase property or services, they must make sure that the contract is properly written and executed in compliance with the law. Finally, joint venturers should be aware that their joint venture is not allowed to act as a corporation unless the joint venture is registered as such with the applicable state authority. To do this, the joint venturers must file certain documents with the proper state office, which will include a certificate of limited partnership.

Related FAQs

What are the potential problems that can arise in a joint venture?
What are the differences between a joint venture and a sole proprietorship?
Are there any restrictions on the type of business activities a joint venture can engage in?
Are there any limitations on what a joint venture can do?
Are there any restrictions on the formation of a joint venture?
What are the regulations governing joint venture contracts?
How do I protect my intellectual property during a joint venture?
What is the role of a joint venture manager?
What are the potential legal risks associated with a joint venture?
Are there any restrictions on how joint venture agreements are structured?

Are there any limitations on what a joint venture can do?

Related FAQs

Related Blog Posts