How to Avoid Partnership Disputes

Starting a business with one or more other people can increase the investments in the business and can spread out the liability should something go wrong. Partnerships are a very common form of business and companies such as McDonald’s, Ben & Jerry’s, Google, Apple, and Warner Bros. all show that businesses that start as partnerships can avoid partnership disputes and grow to be wildly successful.

Despite the existence of many successful business partnerships, it is not always easy working alongside other partners who may have differing views or business strategies than your own. It is quite common for partnership disputes to arise regarding any number of issues. Just because a dispute occurs, however, does not mean the failure of the partnership is imminent. There are many ways to resolve business disputes amicably and continue on with operations as usual. Though what is preferable to successfully resolving a dispute is to avoid partnership disputes in the first place.

Written Agreements

If you have a partnership, it is always wise to have an operating agreement or a partnership agreement. Even the best of friends or close family members can disagree and a partnership agreement can help to limit disagreements. Such written agreements can dictate the specific roles of each partners, how you are compensated, and when you may be able terminate the partnership, and more. Such guidelines can help keep your business and relationship with your partners on track. To ensure the partnership agreement is carefully drafted and negotiated, you should always seek assistance from an experienced attorney during this process.

Remain professional

If you see a dispute arising, it is better to stay calm and address the potential problem in the most business-like manner possible. Staying rational and focusing on solutions rather than problems can help you resolve the matter before a full-fledged dispute forms.

Consider dispute resolution options

If you foresee a dispute and are unsure of whether you can resolve it on your own, you can hire a mediator to come to your business and assist you. A mediator is a neutral third party who will listen to both sides of the disagreement and help to facilitate a solution that is mutually beneficial and best for the business. Many partnership agreements actually require you to try mediation to resolve disagreements before taking any further legal action.

Discuss your situation with an attorney

If you are concerned that a full-blown dispute will occur without much chance of a voluntary resolution, you should contact an experienced business attorney who can help you explore your options.

Contact Our Experienced Baltimore Partnership Dispute Lawyers for Help Today

At The Casper Firm, our business partnership attorneys have assisted many business owners both avoid business disputes and resolve disputes if they should arise. If you have legal concerns regarding your business partnership, call our office today at 888-387-3878.