Partnership Disputes Business Law in Spartanburg, SC
When two or more parties embark on a business venture together, it is often a time of excitement. People typically choose to go into business with people they share a common goal with, and that have the same idea of how to start and run the business. It is then often a surprise when the parties become involved in a dispute and do not know how to resolve it.
Even though no one expects an issue to arise, partnership disputes are much more common than people think. A Spartanburg partnership dispute lawyer can help business owners resolve their issues quickly, with as little impact to the business as possible.
Common Types of Partnership Disputes
While any disagreement between partners can result in a legal dispute, there are some type of partnership disputes that are more common than others. These include:
- Breach of contract: Partnerships sometimes require many different contracts. A partnership agreement, for example, outlines the terms of the business, the authority each partner holds, and the party that is liable for any losses suffered by the business. Any time a partner violates the partnership agreement or any other contract, it is a breach of contract that could result in a partnership dispute.
- Disclosure of information: Businesses rely on confidential information that is vital to their business, and that information is typically protected unless the parties agree otherwise. Any time a partner discloses this confidential information, it can result in a partnership dispute.
- Underperforming: It is easy to assume that all partners will work hard for the business, and all partners are given some degree of responsibility. When a partner does not fulfill their obligations, it can give rise to a partnership dispute.
- Personal issues: Personal disputes can quickly overflow into the business, which is very damaging for a company.
Any time a partnership dispute arises, it is critical that all partners work to resolve them quickly so the business suffers as little impact as possible.
How to Resolve a Partnership Dispute
Litigation is often the first form of dispute resolution people think of, but it is not always necessary. There are a number of ways to resolve partnership disputes, including:
- Negotiation: Often, resolving a dispute only requires bringing the parties involved together and negotiating a deal that is beneficial for all sides. This is the most common type of dispute resolution, but all parties should still work with a partnership dispute lawyer that can secure a favorable outcome for them.
- Mediation: Mediation involves all parties meeting with a mediator who is a third party that can help foster compromise. When the parties can reach an agreement, that agreement becomes legally binding. If the parties cannot agree, another form of dispute resolution is necessary.
- Arbitration: Slightly different from mediation, arbitration requires the parties to meet with an arbitrator that will listen to all sides and then make a decision on the case. Regardless of the decision made, it is final.
Our Business Lawyers Can Help You Avoid Disputes
Partnership disputes are very common, and anyone going into business with someone else should know how to prevent them and protect their business. At A Business Law Firm, our Spartanburg business lawyers can draft a partnership agreement that is reasonable for the business, and help resolve disputes when they arise. Call us today to learn more about how we can help.