A business partnership is like any other personal relationship in that it may have its highs and lows. Partnership disputes arise from all types of circumstances. While planning ahead may help you avoid some such disputes, it is important to understand the potential remedies you may need to consider if you are unable to come to an agreement with your business partner on your own.
Many business partners embroiled in partnership disputes choose to remedy the situation in one of three ways.
Always consider trying to negotiate with your business partner before moving forward with the next steps. This may prove particularly important if you have hopes of continuing to work together in any fashion in the future. However, both parties have to be open to compromising for negotiation to potentially work.
If you or your business partner are unwilling to negotiate, you may want to think about mediation. This involves having an unbiased third party, a mediator, overseeing the situation, and helping you and your partner or partners come to terms or agree to compromise.
Sometimes, things get too acrimonious or complicated to settle partnership disputes through the traditionally more amicable methods of negotiation or mediation. In this case, a judge may need to determine the next steps. Possible outcomes include one partner buying out or usurping control from the other or liquidating the business entirely, depending on circumstances.
A carefully worded partnership agreement may help you and your business partner or partners avoid future disagreements or outline specific remedies if disputes do occur.