An effective business partnership can make running a company much more efficient. You can share the workload, financial responsibility and management of workers. That being said, business partnerships don’t always run smoothly.
If you are in the midst of a partnership dispute, then you should look at the partnership agreement and see if there is a resolution, but what if the partnership agreement is at the center of the issue? Let’s look at one of the more common ways that a partnership agreement can be breached.
Selling shares in the business
You and your business partner both have a financial stake in the company. A key part of the agreement states that major decisions regarding the business must be made together. Your partner thought that selling shares would be beneficial. The problem is that they never ran it by you first, and you disagree.
What impact can this have?
A breach of the partnership agreement, as described above, can be very detrimental to your company. Ultimately, it may lose value and could even have to stop operating until the dispute is resolved.
Resolving partnership breaches
Some breaches can be remedied by going back to the original agreement. Nonetheless, your partner may not be cooperative, and this is where things can get tricky. You may have no choice but to litigate and pursue damages or seek a way to dissolve the partnership.
If you find yourself in a scenario similar to the one described above, then you need to start looking into your options. Having legal guidance will help ensure that the steps you take are all above board.