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A joint venture is a short duration business. When two or more persons join together to work on a project, it is called a joint venture. A joint venture may be described as a temporary partnership between two or more persons without the use of the firm name, for a specific purpose. Hence, it is not governed by any act or statute unlike partnership.

In other words, under a joint venture, two or more persons agree to undertake a particular venture and to share the profits and losses thereof in an agreed ratio. The persons who have so agreed to undertake a joint venture are known as ‘joint venturers’ or ‘co-venturers’.


Note: If the agreement is silent on the profit sharing ratio, then the co-venturers share profits and losses in equal ratio.


Example: Joint venture business may be for joint construction of buildings, purchasing or selling of a particular property, joint underwriting of shares or debentures of Companies, or any other similar temporary or seasonal business enterprise.

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