Two heads are always better than one, this also holds in a business partnership, doing business with a partner can be a great way to work and can increase effectively. These types of business arrangements are common in many businesses, especially in the area of professional services firms and startups. However, disputes can also happen in these situations, and often it can be the bitterest disputes that you will ever experience. This is because it can happen to anyone, even to your most trusted friend.
The good news is, disputes can be avoided. All it takes is a reasonable effort upfront, time, money, and patient throughout the process. Here is the important thing you need to consider to avoid partnership disputes and potentially resolve one.
Consult an attorney to assist you with the partnership agreement.
Having an experienced attorney by your side can help you with the operating or partnership
agreement. One of the common mistakes individuals do is that they will forego having an agreement or even prepare one themselves. It is understandable that starting a business may be exciting causing you to overlook the importance of a clear agreement. They also disregard having a clear agreement in the hopes and desire to save money. While all these reasons may be valid, it is not advisable. Every business is different and every individual partner may have different interests, goals and comfort levels. Using a generic agreement online might expose you to certain procedures or obligations you may not want. It is important to ask for help from a lawyer for your agreement to be tailored to you and your business. Get it started with chester law firm, they specialize in partner dispute.
If the dispute gets worse, consider hiring a mediator or agree to go separate ways.
In the worst case scenario where your dispute has taken on another level and you and your partner can’t see each other eye to eye, consider having a mediator to help you resolve it. This decision should not be taken as an admission of failure, rather it should be perceived as a proactive measure to prevent more consequence once the dispute escalates. That is why it is again important to have a clear agreement in the first place because partnership agreement contains provisions that in the event of disagreement, partners must result or hire a mediator to help them resolve those issues.
If the dispute is heading to an ugly outcome, consult an attorney
If you cannot resolve your differences and the dispute appears to be heading to an outcome that you do not desire, it might be best to consult an attorney. Getting legal help as early as possible might be crucial, a lawyer can help you understand your rights and obligation, and to what extent your partner has. Legal assistance is important in these circumstances for you to know the right protocol provided by your agreement and by the law. Other alternatives may be taken as well like a buyout, settlement or an injunction in case you want something to be stopped at once.
