How to Handle a Business Dispute
Business partnerships have been historically compared to marital unions since business partners have the similar fiduciary duties toward each other. Like marriages, conflicts in the partnership relationship will usually involve matters of control, trust, and finances.
If you are in a business partnership and are currently involved in internal conflict, it is important that you understand your legal options. Speak to a knowledgeable attorney who will provide effective representation and help you develop the right strategies that will help protect your interests. Knez Law Group has handled complex marijuana business disputes among land owners and retail operations, as well as family owned businesses when business assets need to be divided.
The Various Sources of Disputes for Business Partners
The sources of partnership dispute can be numerous. The following list highlights some of the most common sources of dispute: Issues over profits, Declining partnership revenues, Clashing personalities, A poorly formulated partnership agreement, An argument over the direction of the business, Dishonesty over the control of assets, and Partners who have been wrongly ousted by those in control.
Back to the Basics: Formulating a Business Partnership
In many cases, a business dispute will be traced back to its formation. This is especially true when there has been a failure to adequately assign the roles each partner will have, address the relationship between the partners, and address the partner’s obligations. Unfortunately, far too many business partners forego a written contract because they are friends or family members. Many people have the misconception that entering into an agreement means that you do not trust the person you are entering into business with. This, however, can be far from the truth. Establishing a well-drafted agreement will minimize future disputes.
Partnership contracts are beneficial when they address the following: The expected roles and responsibilities of each partner, The intended procedure for the addition of future partners, The initial contributions of each partner, Any subsequent contributions partners will make if the funding runs short, The commercial enterprise of the partnership, The goals and concerns of each partner, The procedure for salaries and profit distribution, What the procedure will be when a member exits the partnership, The procedure for auditing as well as fraud prevention, The procedure for a partnership dissolution, and The procedure and/or any restrictions on transferring the ownership to third parties.
Obtain the Legal Support of a Business Partnership Dispute Attorney
Nearly every business enterprise will begin with business owners having a great relationship. Sadly, disputes can arise that were unexpected and cannot be remedied by those involved. When the business partnership is undergoing difficulties, it is critically important to seek the legal support of a experienced attorney. A skilled litigator will ensure your partnership rights are upheld.
The experienced litigators at the Knez Law Group understand that even temporary disputes can have a very costly effect on business operations. If you are facing a business partnership dispute, the law firm can negotiate on your behalf and help you find solutions to the partnership disagreement. When necessary, the Knez Law Group is prepared to litigate business disagreements in court. Consider contacting the Knez Law Group to help protect your partnership rights. Schedule your no-obligation consultation with the law firm today at (951) 742-7681.
Andrew J. Knez earned his Bachelor of Arts degrees in Political Science and Criminal Justice from California State University, Fullerton. During his college years, he was a member of the Pi Kappa Phi Fraternity and interned at the College Legal Clinic, where he assisted underprivileged communities in obtaining affordable legal services. Mr. Knez credits this experience with fostering his appreciation for the law and its positive impact on society. Additionally, during college, Mr. Knez worked as a paralegal, gaining hands-on experience in civil litigation. Learn more here.