California, United States of America
The following excerpt is from Sedia v. Elkins, 20 Cal.Rptr. 278, 201 Cal.App.2d 440 (Cal. App. 1962):
' 3. Tests of Relationship.--To establish the existence of a joint adventure there must be proof, as in the case of a partnership, of a community of interest and a sharing of profits and losses. Moreover, each joint adventurer must have an equal right, or the right in some measure, to direct the conduct of the others through a fiduciary relation that must exist. And, generally speaking, a joint proprietary interest in the [201 Cal.App.2d 451] joint adventure property and joint participation in the conduct of the business are essential elements. This is not to say, however, that there cannot be a joint venture where the parties have unequal control of operations. The equal right to control the management of the enterprise properly has reference to the fact that without special agreement one joint adventurer may not have authority to bind the others. The joint adventurers may by agreement grant authority to one or more of their number that would not be implied from the relationship alone. Nor is it necessary that the property forming the capital of the adventure be jointly owned by the parties. Thus, where the evidence clearly shows the parties' intention to engage in a joint enterprise for profit, the principles governing joint venture apply irrespective of how title to property is taken. Furthermore, a substantial contribution can be made to a joint enterprise by the furnishing of knowledge, skill, and services, as well as by money.' (See Stilwell v. Trutanich, 178 Cal.App.2d 614, 618-620, 3 Cal.Rptr. 285.)
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