Are there any restrictions on the type of business activities a joint venture can engage in?

In Indiana, joint ventures are bound by law when it comes to what type of business activities they can engage in. A joint venture is an agreement between two or more parties to combine resources and expertise in order to undertake a specific business activity. The activities that a joint venture can engage in must be stated in the joint venture agreement. Generally, the parties to the joint venture should ensure that the agreement does not limit any party’s ability to compete in other activities, or restrict any party’s ability to form similar arrangements with other parties. Under Indiana law, joint ventures may not engage in activities that are prohibited by law, or any that are contrary to public policy. Additionally, the activities of a joint venture must be limited to the purpose for which the joint venture was created. This means the joint venture cannot enter into arrangements with third parties, borrow money, or engage in activities that are outside the scope of the agreement. Finally, the joint venture must not involve activities that create a sole proprietorship, partnership, trust, or corporation. In all cases, the activities of a joint venture must comply with all applicable laws and regulations.

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Are there any restrictions on the type of business activities a joint venture can engage in?

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