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Joint ventures in most cases start out with the best of intentions but when there is a disagreement pertaining to the contract or when one of the parties involved  does not  have the funds that they had originally committed, it can lead to a joint venture dispute.

What causes a joint venture dispute? 

There are many factors that can contribute to a joint venture dispute. By knowing what they are and what to look for, it may be easier to avoid them. Here are some of the most common issues which lead to these types of disputes: 

  • Unclear or differing goals in the joint venture project. 
  • An imbalance among the entities involved in resources, monetary investment, or expertise. 
  • Differing management or work styles. 
  • Poor leadership or communication. 
  • Lack of cooperation between the entities involved. 

What happens when there is a joint venture dispute? 

Joint venture disputes can lead to major problems within the company. It can lead to a loss of productivity or even complete project disruption. These disputes can negatively impact the atmosphere and culture of a company and hurt the bottom line. 

When this happens, partners may have to set special orders just to maintain the status quo and prevent other partners from selling until the issue can be resolved. 

One of the challenges here is that unlike partnerships, joint ventures are not usually recognized as a legal entity, but if the dispute goes to court, the judge may treat the joint venture more like a partnership. Essentially meaning that the parties involved could be held liable for any financial or legal issues that have arisen out of the dispute. 

What should you do when you have a joint venture dispute? 

Given the potential legal liability, it is important that you know what to do when you have a joint venture dispute. The first thing you should do is review your joint venture agreement. If this agreement was drawn up properly by a competent business lawyer, it will outline what to do, should there be a dispute between the parties. 

There are various types of dispute resolution clauses that may be included in your agreement depending on the unique attributes of your joint venture. In some cases, parties may agree that they will go through a mediation process if the dispute is going to result in a certain level of financial impact. 

The joint venture agreement may also outline the obligations of each party and contingency plans about what should happen if deadlines are not met. These contingency plans may include extending certain deadlines or even imposing financial penalties on the entities who do not fulfill their obligations in a timely manner. 

Seeking mediation is a common method for resolving joint venture disputes as it can be not only very effective, but much less costly than going to litigation. 

What should I do if I am involved in a joint venture dispute? 

The first thing that you should do if you are involved in a joint venture is to contact a good business lawyer who will represent your interests. They will be able to interpret your joint venture agreement and help you explore your options. 

Contact Minhas Laywers today

If you are involved in a joint venture dispute, it is important that you have an experienced business lawyer on your side. Call us today to schedule a consultation with our business lawyers! 


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Minhas Lawyers Professional Corporation is a multi-practice law firm based in Mississauga. We advise and represent clients across various segments and practice areas.

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