When two or more people begin conducting business together, they automatically have a partnership. While partners may start out strong and on the same page, there are bound to be conflicts and disagreements as the relationship progresses, and some disagreements may be more serious than others. So, what do you do when you and your partner have a partnership dispute that you cannot seem to resolve on your own?
Look to Your Partnership Agreement
While a partnership does not require any formal filings with the state, it is always wise to have an attorney draft a comprehensive partnership agreement. This agreement can set out guidelines for your operations, management roles, and how you will resolve certain disputes. Often, if you have a partnership agreement, it will address how a specific dispute should be resolved. In fact, having an agreement can often prevent disputes from escalating to begin with.
Alternative Dispute Resolution
Our business attorneys regularly work with partners to help them negotiate and resolve disputes without heading to court. This can include simply sitting down and having conversations to encourage compromise, or more formal alternative dispute resolution methods such as mediation or arbitration. These methods can be substantially less adversarial, less costly, and less stressful than litigation.
If there is no resolution in sight, you should have an experienced business attorney who can help protect your interests in court. Partner litigation often results in the ousting of one partner or the dissolution of the business altogether.
Consult with Our San Francisco Business Attorneys Today
At Primum Law Group, we work with partnerships to both prevent and resolve disputes between owners. If you decide that you are ready to dissolve your partnership, we can oversee that process, as well. Call 415.659.7975 or contact us online to discuss the many ways we can help your business today.