Venturing into a business, especially with a friend, is exciting and fun. You might have discussed profit and loss sharing percentages or brainstormed ideas to take the company ahead. When it comes to partnership, business owners often overlook the importance of a partnership dispute resolution plan.
In business, disputes amongst partners and other associates are inevitable. While some conflicts are minor and can be handled with communication, certain scenarios might need partnership dispute lawyer Virginia Beach. Whether you are entering into a business partnership with your spouse, family member, or best friend, you should have a partnership agreement.
Here are a few tips to avoid a partnership dispute.
Draft a Partnership Agreement
In life and business, one should hope for the best and prepare for the worst. In any partnership firm, conflicts between the partners and shareholders can be the worst nightmare. Before considering starting a business venture with your friend, be practical, and prepare a plan for every scenario, including future disputes.
For any business’s success, having a documented business agreement like the partnership deed is essential. A partnership agreement is a written document that specifies the partnership’s details, including profit sharing ratio, liabilities, length of the partnership, roles of the partners, etc.
A crucial element of a partnership agreement is dispute resolution. When drafting a partnership agreement, make sure it has explicit provisions for conflict resolution. Having a written contract for dispute resolution allows the partners to keep the conflict out of the court and find a speedy solution. A partnership venture may end up due to any reason. If a business partner decides to leave the partnership, the partnership agreement will help you handle these situations. Having the professional assistance of a business dispute lawyer Virginia Beach is best when faced with partnership disputes.
Resolve Your Dispute
Having clear communication with your business partner and discussing the dispute is the best way to resolve it. Decide a day when all the partners can meet and sit for the discussion. Your agenda should be to come to a mutual understanding to resolve the conflict as smoothly as possible. Partnership disputes, if not resolved in time, can turn into costly litigation. No one would want their business matter taken to court. Thus, it’s essential to reach some agreement without getting the court involved. Hiring a mediator can also help you come to the middle ground with your business partners.
Hire a Partnership Dispute Attorney
In partnership businesses, each partner has legal rights. In times of disputes and disagreements, one must ensure their interests are appropriately represented. Hiring a partnership dispute lawyer makes sure you have a fair chance to put forth your points and exercise your legal rights. Such attorneys are also proficient at offering consultation services. Attorneys also help their clients identify any red flag in the legal documents and avoid disputes. Even after discussion, you and your business partner cannot reach a mutual agreement; it’s best to take the matter to a lawyer. You can either end the partnership by going the separate way or buying out other partners. Whatever you choose, make sure you consult a professional lawyer first.