Joint Venture vs Partnership: Definition, Relevant Case Laws and Issues

COMPANY LAW
[Type the document subtitle]
STUDENT ID:
[Pick the date]

Definition
A partnership may be defined as an agency relationship which tends to exist amongst people
who are carrying on the business with common ownership and intent to earn profits. In
accordance with s.1, Partnership Act 1892 (NSW), a partnership has three essential attributes
as highlighted below (Gibson & Fraser, 2014).
 The business is carried on which essentially refers that the business must not be
restricted to a single transaction and instead the business activities must be repeated as
highlighted in the verdict of Smith v Anderson (1880) 15 Ch D 247 case.
 It is done so in common which implies that there is common ownership of the
underlying business activities even though the participation of different partners may
vary.
 The underlying intention of profit drives the business activities which enables
separation of partnership from clubs and associations.
A joint venture is defined as association of people or legal entities in order to conduct
business together or for assuming a given project without the loss of their respective
corporate structures. There is an underlying agreement also which highlights the rights and
obligations of the parties to the joint venture (Latimer, 2016).
Another definition of joint ventures has been highlighted in United Dominion Corporation
Ltd v Brian (1985) 157 CLR 1 by Mason J and is given below (Chetwin, 2007).
Relevant Case Law
One of the relevant case laws with regards to defining joint ventures is United Dominions
Corporation Ltd v Brian Pty Ltd. (1985) 157 CLR 1. It is highlighted that in common law, there
is no particular definition of joint ventures. Also, it is acknowledged that often in cases where
a given entity contributes money and the other property, it is difficult to segregate a joint
venture from a partnership (Davenport & Parker, 2014).
Another relevant case is Canny Gabriel Castle Advertising Pty Ltd & Anor v Volume Sales
(Finance) Pty Ltd (1974) 131 CLR 321. In the given case, there was a joint venture agreement