What is the test for establishing a joint venture?

However, we do not believe that the rule of the cited case is applicable to the instant case. Here the parties made a joint offer. Each advanced funds for the deposit accompanying the offer. They had orally agreed that each would put up one-half of the purchase price and that each would acquire a one-half [199 Cal.App.2d 483] interest. This is a sufficient showing to support the decision of the trial court. As stated in Epstein v. Stahl, 176 Cal.App.2d 53, at page 57, 1 Cal.Rptr. 143, at page 146:

'The common definition of a joint venture is "a special combination of two or more persons, where in some specific venture a profit is jointly sought without any actual partnership or corporate designation, or as an association of persons to carry out a single business enterprise for profit, for which purpose they combine their property, money, effects, skill, and knowledge." Sime v. Malouf, 95 Cal.App.2d 82, 95, 212 P.2d 946, 953, 213 P.2d 788. The relation of joint venturers is founded on contract. Whether the parties have created such a relationship as between themselves depends on their actual intention. The law requires little formality in the creation of a joint venture. The relationship may be created by oral agreement. 28 Cal.Jur.2d 484, 6. The relationship between the parties is not to be determined by the label which the pleader gives to an agreement; it is to be determined by the ultimate facts pleaded. Smith v. Grove, 47 Cal.App.2d 456, 461, 118 P.2d 324.