What is the standard of care in a joint venture?

The standard of care in a joint venture in Virginia is based upon the language of the contract between the parties. Generally speaking, each party to a joint venture is held to the same degree of care and diligence as they would owe to their own business. This means that each party must exercise the same level of attention, skill, and diligence as someone who is managing their own affairs with due care and skill. Similarly, the parties are expected to act in good faith and with fairness towards each other. In addition, the parties should not act in a manner that harms the venture as a whole. This includes avoiding actions that are inimical to the success of the venture. In short, the parties to a joint venture should act as if each was operating its own business because they are, in a sense, jointly operating a business.

Related FAQs

What are the best ways to maximize the benefits of a joint venture?
Are there any obligations to disclose confidential information during a joint venture?
Are there any restrictions on the duration of a joint venture?
What are the management responsibilities of a joint venture?
Are there any restrictions on the number of partners in a joint venture?
What is the legal status of a joint venture?
What are the potential problems that can arise in a joint venture?
What is joint venture liability?
What kinds of assets can a joint venture own?
Are there any limitations on what a joint venture can do?

What is the standard of care in a joint venture?

Related FAQs

Related Blog Posts