Entering a business partnership is very much like entering a marriage. There needs to be implicit trust on both sides. When you enter into a business partnership, you also have a written contract that spells out the conditions and details of the relationship. Partnerships are necessary not only to combine talents, but also to create a strong, sustainable enterprise. We have listed some helpful resources you can find that discuss contractual agreements between business partners here.
However, it is also important that partners work well together and have a common vision to move the business forward in a united manner. In many cases, our Baltimore business lawyers observe that partners enter into business agreements with good intentions, but end up having conflicts and difference of opinion, often with regard to what is in the best interest of the business.
When a conflict or disagreement does arise, there are several options to help resolve it. It is critical to consider the best interest of the business before you take any steps. An experienced Baltimore business lawyer can help you evaluate the options that are available and advise you with regard to the best possible way to solve the dispute.
When you and business partner are in the middle of a dispute or conflict, things can get pretty heated. The first step is to remain calm and not say anything that could make matters worse. When there is any dispute, the first step is to refer to your partnership agreement and look for answers there. These agreements are created at the inception of the business.
A well-written business partnership agreement with set forth the conditions, rules and best practices when it comes to running the business. It should provide comprehensive details regarding the business plan and clearly define each partner’s role within the organization. So, if the agreement gives decision-making authority to one of the partners or require that partners confer to make a decision, then you know immediately how to resolve the dispute.
If examining your partnership agreement fails to resolve your dispute, then look at other documents that may have been created when you started your business. Examples of such documents may include employment agreements that might help clarify partners’ roles. The answers or solutions may lie in these types of documents.
When that fails, you may want to consider mediation or arbitration instead of heading for litigation. What mediation does it keep the matter out of the courts. This is important because you will still need to work with your partner until your dispute is resolved one way or another. You do not want to deal with an awkward situation at work with a lawsuit hanging over your head. In addition mediation or arbitration also helps you and your partner find solutions together, which enables you to continue the business relationship in an amicable manner, should you choose to go forward. If all else, fails, litigation might be the only way to resolve your partnership dispute. Depending on the nature of the dispute you may wish to bring a civil breach of contract lawsuit or a complaint alleging breach of fiduciary duty.
There are many valid considerations when you are trying to resolve a contractual dispute with your business partner. This could be a source of significant emotional and financial stress. Our experienced Baltimore business attorneys can help guide you through the process of resolving a dispute with your business partner and arrive at a solution that is best for you and your business. Call us for a free and comprehensive consultation.