Asked by Kirsten Landsverk on Apr 30, 2024
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The president of Kool Science wants to draw up a written contract because it is unclear what type of law will be applied if there are problems. However, the president of Language Fun states that, although it is always a good idea to have a written contract, it is not necessary because partnership law will be applied if there are problems. Who is correct?
A) Kool Science's president is correct because a formal agreement is required for a joint venture.
B) Kool Science's president is correct because courts will not know what type of law to apply without an express written provision in a contract.
C) Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement since the parties are required to file a certificate of joint venture with the state.
D) Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement, and courts frequently apply partnership law to joint ventures.
E) Neither person is correct.
Joint Venture
A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, which is usually limited in time and scope.
Partnership Law
The branch of law that governs the operations, rights, and obligations of parties in a partnership, including the formation, management, and dissolution of partnerships.
Written Contract
A legally binding agreement between two or more parties, explicitly detailed in a written document rather than agreed upon orally.
- Comprehend the variances between joint ventures and other business partnership models.
Verified Answer
Learning Objectives
- Comprehend the variances between joint ventures and other business partnership models.
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