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 kind of legal advice is necessary for forming a joint venture?
What happens to joint venture assets when a joint venture is dissolved?
Are there any restrictions on the types of products or services a joint venture can offer?
What are the potential legal consequences of forming 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 restrictions on the number of partners in a joint venture?
Are there any restrictions on how the profits of a joint venture are distributed?
What is the difference between a joint venture and a limited liability company?
Are there any restrictions on how joint venture agreements are structured?

What is the standard of care in a joint venture?

Related FAQs

Related Blog Posts