Joint venture

In order to ensure that the recommendation and any consequent legislation will not affect relationships among parties who have not made such a declaration, we will make a recommendation that legislation provide that the absence of a declaration that a joint venture is not a partnership does not imply that the relationship between the joint venturers is or is not a partnership. [...] However, a joint venture that has the qualifications stated in the legislation should be able to qualify as a non-partnership joint venture if the joint venturers comply with the requirements of the legislation, that is, by making a declaration that the joint venture is not a partnership and by carrying on business under a name that includes “Joint Venture” or “JV” and we will so recommend. [...] If the joint venture contract is silent on the question, in the absence of any legislative provision, property committed by a joint venturer for the use of the joint venture will presumably remain the property of the joint venturer, while property acquired in the course of the joint venture will presumably be co- owned by the joint venturers. [...] It is our view that parties 26 who are carrying on a business venture in common will be jointly and severally liable under the common law for debts and obligations incurred and wrongs committed, in the ordinary course of the business of the joint venture as described in the joint venture contract, unless there is something in the relationship of the joint venturers to the outside persons affected [...] We will make a recommendation accordingly.45 2. LIABILITY OF NON-PARTNERSHIP JOINT VENTURERS TO PERSONS EMPLOYED IN THE ACTIVITIES OF THE JOINT VENTURE [67] Liability of non-partnership joint venturers to persons employed in the activities of the joint venture is a special case of liability to third parties.