Like a marriage, a business partnership can run into problems for a variety of reasons. When you go into a partnership understanding the risk, you can be prepared to weather the storm.
Steinberg Law works with clients to form smart partnerships and also represents partners when a dispute arises. Learn more about partnership disputes here.
How a Solid Partnership Agreement Can Avoid Big Problems
When you first go into business with a partner, it is essential that you draft a detailed agreement that outlines how the company will be run and addresses each partner’s responsibilities. When a business law attorney helps with this important task, you can be sure that almost anything that could go wrong in a partnership will be addressed in the contract, as well as how disputes will be resolved and how the partnership will be divided if it dissolves. With a solid, signed agreement, the legal process for dealing with a problem caused by one partner will be clear.
What Can Go Wrong With a Business Partnership?
You might have trusted your partner with your life—after all, you got together for a reason! However, when things go wrong, you will need to take action to protect your investment. Common disputes that can arise in a business partnership include:
- Breach of contract. If your partner fails to comply with the terms of your partnership agreement, your company’s operating agreement, a non-compete document, or any other contract, you might have to take legal action to compel compliance or sue for any losses caused by the breach.
- Breach of fiduciary duty. Committing a crime, misusing company funds, exposing the partnership to liability, managing the business carelessly, or exposing company secrets are all grounds for suing a partner for breach of duty. You could win compensatory damages and possibly even punitive damages.
- Conflicts in the company vision. Though less contentious than an illegal action, a dispute over how the company should operate can end a partnership. An attorney can mediate an agreement or help dissolve the partnership in a manner that is acceptable to both partners.
Whether you choose to expel a partner, dissolve the partnership, or sue the partner when there is a conflict, you will need the help of a New Jersey business law attorney who is only on your side.
Call Steinberg Law With All of Your Partnership Needs
You might be going into business together, but you should each have your own attorney—both when you are forming the partnership and if a dispute arises. In New Jersey, contact attorney Frank Steinberg for reliable legal advice when you are forming a new partnership or when your old partnership goes south.