The many facets of a business require those in ownership or a working relationship to negotiate, cooperate, compromise and conduct any number of other amicable actions in order to maintain a productive, successful company and avoid dispute. There are times when businesses in Illinois and elsewhere, however, become wrought with discord and disagreements about things like expansion, control, raising capital funds or planning for the future. Contract disputes are among the issues that sometimes necessitate legal assistance in order to achieve a positive outcome for all involved.
Because a business is often worth more to the owners if it remains ongoing, one partner often buys-out another in order to avoid dissolving the business when disputes arise. Some say this often leads to further dispute. When contract negotiations are not able to be resolved outside a courtroom, litigation is sometimes chosen by one or more business partners.
Once a business disagreement enters litigation, the court sometimes alters or eliminates the fiduciary duties between the partners. Just as personal friendships sometimes end, persons who enter into business ownership together sometimes discover, after the fact, that they are not suited to do business with one another. In such circumstances, those involved typically try to resolve all issues in a peaceful, fair way that is agreeable to all parties of interest.
Some find it difficult to abide by the set terms of a contract when partners no longer share a common interest in the business. In such circumstances, Illinois business owners may seek legal counsel when considering litigation as a means to solve contract disputes. It is important for all involved parties to have a clear understanding of the terms of a contract and to clarify the issues of a potential settlement agreement before proceeding to court. An experienced attorney would most likely be able to offer advice and guidance in these types of situations.
Source: natlawreview.com, “Business Litigation and Fiduciary Duties – What Partners Should Know about Settlement Agreements“, July 20, 2015