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Joint ventures do not always go as hoped

It is common for businesses to come to agreements with other businesses in hopes of helping each company thrive. These joint ventures can often have beneficial outcomes when the agreements go as intended, but it is also not uncommon for business relationships to prove less successful than hoped. In some cases, issues could even lead to lawsuits.

Texas readers may be interested in a lawsuit that is currently taking place in another state. Reports indicated that a donut company has filed the lawsuit against a county councilwoman, her son and their companies, who were all involved in a joint venture agreement. Apparently, the councilwoman and other parties came to an agreement with the donut company to have the donuts distributed within various companies and stores. As a result, the donut company moved into the councilwoman's building to order to more easily meet the donut demand.

The company was also reportedly ordered to make more donuts than were actually distributed. It asserts that the councilwoman has not fulfilled various invoices that add up to hundreds of thousands of dollars. The company believes that the councilwoman and her sons took steps to damage the business, and as a result, it is suing for damages.

Like any business arrangement, joint ventures can come with risks. As this case indicates, some parties to the agreement may not uphold their end of the deal, and as a result, companies could suffer. If Texas business owners believe that they have suffered damages due to violations of joint venture agreements, they may wish to review their legal options.

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