Even if you went into business with the “ideal” partner, it isn’t to say that you will never embark on disputes or conflict. Any time two different people work together, there will likely be times of disagreement and differing opinions.
You and your business partner have probably been able to work through minor disputes on your own through compromising. However, when big disputes arise and you become deadlocked, you might need assistance.
The first place to turn when dealing with a dispute is your partnership agreement. If your agreement was drafted by an experienced business law attorney, then it likely states how major disputes should be settled. For example, your partnership agreement might state that you will use a mediator or arbitrator to settle your differences.
An effective partnership agreement can also help to avoid disputes in the first place by laying out each partner’s responsibilities and contributions, which are often issues of contention. It should also state how profits, losses and draws are shared, and how important business decisions should be made.
Sometimes, merely taking another look at your partnership agreement can help settle your dispute without needing to get anyone else involved.
If you do not have a partnership agreement in place, or it is incomplete, it would be a good idea to meet with a business law attorney who can provide you and your partner with advice.
If you decide to stay in business, the attorney can also draft a partnership agreement so that you can possibly avoid disputes in the future. As is true in any sport, it’s always best to have the rules in place before the game has begun in order to avoid conflict.
Many business partners encounter disputes at some point. The good news is that by taking a look at your partnership agreement or by working with an experienced attorney, these disputes can usually be resolved.
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.