Tips on Handling Partnership Disputes
Going into business with a partner has its pros and cons. The one certainty about a business partnership, like any relationship, is that the conflicts are inevitable. And in some cases the conflict may turn into a dispute that threatens the viability of a partnership.
Fortunately, with some degree of effort and time invested, a partnership dispute can be avoided. There are some tips for you to avoid conflicts with your partner, resolve them and, most importantly, prevent from getting your partnership eventually damaged.
1. The Quality and Thoroughness of Corporate Documents and Operating Agreements
Hire a legal council to assist you in preparing your operating and partnership agreements. It is necessary to ensure that the partnership documents clearly address all aspects of the partnership operations. Every partnership or operating agreement and other major decisions between the partners should be documented and signed, so that you could always refer back to the written agreement when a conflict is about to arise.
2. Dedicate time to discuss your dispute, and focus on the solution
Make time to sit down and have a calm, reasoned conversation about the dispute. You don't need to win the argument, you need to focus on the solution and what is the best for the business if you want to keep the long-term relationship.
3. Consider hiring a mediator
In some cases, a neutral third party may be a key to resolve a dispute. It can help to have a cleaner dispute, a faster resolution, and an outcome suitable for both parties. Also a mediator can ensure keeping emotions out of the discussion.
4. Get a legal help
You should contact an attorney, if you cannot resolve your differences, and everything else fails. When the dispute seems to be heading towards an ugly outcome an attorney can help you understand your rights and obligations, and the same of your partner. An attorney can help you understand your rights and obligations, and to what extent your partner has similar rights or obligations.
Having a conflict with your business partner may have a significant impact on both your business and personal life. To avoid disputes you should take proactive measures early on. Addressing and resolving conflicts as soon as they occur will preserve your relationship and the effectiveness of the business.
KPPB LAW (2017, September 26) Tips on handling partnership disputes. Retrieved February 6, 2020, from https://www.kppblaw.com/partnership-dispute-resolution/
Robert Fojo, 5 Ways to avoid and resolve partnership disputes. Retrieved February 6, 2020, from https://www.legal.io/guide/551c5f627777773fa2950100/5-Ways-To-Avoid-And-Resolve-Partnership-Disputes
Ty Kiisel, 4 Rules for handling conflicts with your business partner. Retrieved February 2020, from https://www.ondeck.com/resources/4-rules-handling-conflicts-business-partner
Daniel Watkins, How to effectively resolve partnerships disputes.Retrieved February 6, from https://www.hg.org/legal-articles/how-to-effectively-resolve-partnership-disputes-36726