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3 things to remember about partnership disputes

On Behalf of | Jan 3, 2023 | Business & Commercial Law

Going into a business with a partner involves having trust in their ability to run the business. While each partner may have different areas of expertise, they should come together to create a successful company.

Partnership disputes can happen over just about anything. Even though they’re common, they can significantly impact the company’s fate. Remember these three points about disputes if you’re considering entering into a partnership.

Partnership agreements may prevent disputes

Crafting a comprehensive partnership agreement can help to prevent disputes. It should clearly outline each partner’s responsibilities. Dispute resolution methods should also be included so the partners know what to expect if they can’t agree.

Disputes should be handled behind closed doors

If a dispute occurs, it should be handled away from employees and clients. Continuing to present a united front can help employees and customers feel more secure, which can help the company in the long run. Everyone involved must be willing to discuss the matter openly. Compromise can help to come to a suitable solution. If tensions are high, taking time to evaluate the options and coming back to determine the decision might be the best option.

Outside help might be required

If you and your partner can’t agree on the resolution of the dispute, you may need to turn to a third party for help. Mediation and arbitration are two options that might be feasible. The exception to this is if the dispute is over one partner doing something illegal, which could mean the authorities need to be called in.

Ultimately, most business owners want to protect the company they’ve worked hard to build. Working with someone who can help them to do this is beneficial.