MBE Rules · Torts
Joint Enterprise
Joint enterprise liability
The rule
Members of a joint enterprise — common purpose, mutual right of control, and (for business ventures) pecuniary interest — are vicariously liable for each other's negligence within the enterprise's scope.
In plain English
A joint enterprise involves two or more people working together towards a common goal, where they share control and financial interest. If one member acts negligently while pursuing that goal, all members can be held liable for the resulting damages. This rule ensures that those involved in a joint effort are accountable for each other's actions.
Worked example
Two friends decide to start a food truck business together. While driving to an event, one friend runs a red light and causes an accident. Because they were both engaged in a joint enterprise with a common purpose and mutual control, they are both vicariously liable for the negligence of the driver.
Memory hook
In a joint enterprise, we all share the blame when one goes off the rails.
The trap
Exams may present scenarios where the relationship between parties is ambiguous, leading students to misidentify whether a joint enterprise exists. Students often overlook the requirement of mutual control.
How examiners test it
Questions typically describe a situation involving multiple parties working together and then present a negligence claim, prompting candidates to analyze the relationship and determine joint enterprise liability.
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