Partnerships in business can be a smart and profitable way to operate a business. When you first begin your partnership, it may seem like things will always go smoothly.
However, just like in other relationships, partnership disputes aren’t unusual. When one occurs, knowing your legal options and rights is a must. Here are some options for handling the situation:
Talk and negotiate
A successful business relationship relies on good communication. Before choosing a more structured settlement process, try to handle the situation with your partner directly. It may be possible to negotiate with your partner and resolve the matter.
You can opt for mediation, too. This allows a third party to help with your dispute. Mediators have special training to help resolve the issue. With mediation, you can avoid the often-high costs associated with going to court or taking additional steps to settle the dispute.
Turn to your partnership agreement
A written agreement is highly recommended when entering a partnership with someone. This allows you to outline each party’s rights and responsibilities. You can also outline dispute resolution matters in the agreement that is created. When disputes arise, you will have a clear, step-by-step process to follow based on what you and your partner have agreed to.
If no other methods work, you can take the matter to court. This will help you find a resolution to the issue. In many cases, going to court to settle a dispute results in the buyout of one partner or liquidation of the business.
Protecting your rights in a business partnership
If you have a partnership dispute due to a breach of contract or another issue, you have several methods to resolve the matter. Knowing your rights and options is best to ensure you take the right steps if you find yourself in this situation.