Partnership disputes can arise for many different reasons. Some of the most common conflicts include disagreements over profits, performance, responsibilities, workloads, and other matters. If you do not how to prepare for and navigate these conflicts, your business will surely suffer.
Here are five ways to prevent and resolve partnership disputes:
- Hire a lawyer to draft your documents: You can get ahead of most potential problems with a good set of partnership documents. Our lawyers will make sure that the documents are in accordance with applicable laws. We can hold discussions with the partners to help clarify legal obligations and manage expectations from the beginning.
- Create a dispute resolution provision: Not all partnership agreements have a dispute resolution provision. If yours does not, talk to your partner(s) about developing one. A well-written clause will lay out the terms and timelines for resolving conflicts that arise.
- Establish a buyout agreement: This is another agreement or provision that you should ideally put in place long before any serious partnership issues or disagreements crop up. Also known as a buy-sell agreement, a buyout agreement is a binding contract that identifies what will happen when a partner leaves the business. In some cases, a buyout agreement can also be implemented to force out a non-performing business partner.
- Participate in alternative dispute resolution: It can be good to work things out without resorting to a lawsuit. That is where alternative dispute resolution (ADR) comes into play. It can include the use of methods such as mediation or arbitration involving a third party.
- Consider litigation to protect your rights: Lawsuits have their place in the world of partnership disputes. Sometimes they are necessary when other methods of resolution have failed. They can also be appropriate when the issue is significant or egregious.
Discuss Your Situation During a Free Legal Consultation
Our law firm is here to help you understand your rights and customize a strategy to protect your best interests. We have experience helping partners, shareholders, and members overcome disputes. Our attorneys can handle a wide range of claims with the skill and tenacity you need.
Call (312) 625-1679 to discuss your situation and options free of charge. Markoff Leinberger is located in Chicago, Illinois and provides exceptional representation to clients across the country.