joint enterprise
A joint enterprise is an activity undertaken by two or more people who share a common purpose, a mutual interest in the objective to be achieved, and an equal or comparable level of control over the conduct of the enterprise.
The term has distinct meanings in different areas of law:
- In business law, a joint enterprise is an informal relationship in which two or more parties contribute skills, resources, or capital toward a single project or limited undertaking. It is typically narrower and more temporary than a joint venture, and it does not necessarily create a separate legal entity. Parties in a joint enterprise may share profits or losses, depending on the agreement. In contrast, a joint venture often involves a more formal and ongoing business arrangement.
- In tort and criminal law, joint enterprise refers to a shared undertaking that creates shared liability.
- In tort law, it may allow one participant’s negligence to be imputed to another when they share a common purpose and an equal right of control.
- In criminal law, the doctrine of joint enterprise establishes collective responsibility for a group acting together toward a criminal objective, allowing each participant to be held liable for acts committed by others in furtherance of the common plan.
Joint enterprise requires more than mere presence or association. Courts often look for:
- An express or implied agreement to pursue a common purpose;
- A shared objective among the participants; and
- An equal right to control the undertaking.
[Last reviewed in November of 2025 by the Wex Definitions Team]
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