Working it out as you go tends to work until it doesn't — and when it stops working, the absence of clear rules makes everything harder and more expensive to resolve.

Misaligned expectations around contribution and reward, unclear decision-making and the absence of a workable exit route are the most common causes of JV breakdown — most are preventable with better structure at the start.

Carefully. Deadlock in a 50/50 structure is one of the most common and difficult JV problems — escalation pathways and buy-out mechanics need to be thought through before the venture starts, not after deadlock sets in.

That depends heavily on what the agreement says — which is why exit mechanics matter so much at the drafting stage. If the agreement is silent, exit tends to become a negotiation under pressure.

The line can blur, but the key question is the same: are the obligations, rights and exit options clearly documented? Partnerships that rely on goodwill become difficult to manage as commercial stakes increase.