3 tips for handling a partnership dispute

On Behalf of | Jun 4, 2024 | BUSINESS & COMMERCIAL LAW - Contract Disputes

Partners generally go into business together because they each have something they can contribute to their shared company. Many of these arrangements can move forward without any issues, but there are times when conflicts may occur.

A partnership dispute must be handled properly because these matters have the ability to rip a company apart if they aren’t. There are a few specific ways that individuals who run a business together can handle these issues to minimize the negative effects on the company as they seek a resolution.

Take the conflict away from the business

There’s a chance that employees or clients hearing the specifics of a partnership dispute may consider the company unstable. This can affect the business’ bottom line if the let others know what’s going on. Because of this, it’s usually best to talk about these matters behind closed doors or somewhere away from the business.

Keep an open mind while talking through the issue

Regardless of what the issue is, there’s a chance that one partner has more experience than the other. Both partners need to keep an open mind so they can hear all the applicable facts and make a decision that’s going to help propel the company forward.

Bring in outside assistance

Sometimes, having the opinion of a third-party can make it easier to resolve the partnership dispute. This person might be someone familiar with the matter that’s causing the problem or it may be a third-party neutral who can help to keep discussions on track to resolve the issue.

If you are a partner in a business, you must ensure that you do what’s best for the company. This starts with taking steps to protect the business with a strong partnership agreement and continues through verifying that all contracts are solid. Working with someone familiar with these matters is critical to ensure you have all your bases covered, proactively and in the event that a meaningful dispute should arise.