Entering a business partnership with a friend, family member, or anyone else may seem like a good idea in the beginning. You both have a passion for what you are doing and seem to be on the same page.
While disagreements are likely in any partnership, being able to overcome these is a must if you want to move forward and ensure the ongoing success of the business. However, there are some disagreements or issues that you may not be able to overcome. One of these is a breach of the partnership agreement.
Unfortunately, if your partner fails to adhere to your initial partnership contract terms, you may wonder what options you have. The good news is that you have several options to consider.
Consider the damages
Before acting against your partner, you should consider if damages occurred. For example, did your business suffer because of the breach? If so, you may have grounds to sue your partner to recoup what was lost.
However, if you sue your partner, there’s a good chance it would mean the partnership was over. If you want to avoid this outcome, working with your partner to agree to a settlement may be better. This settlement is up to you. It may be monetary or involve something else.
Ending the partnership
Sometimes, a breach is so serious that you will want to end the partnership completely. In this situation, you may be able to expel the partner who breached the terms of your contract. If your original agreement doesn’t allow this, the only option is to dissolve it completely.
Understanding your rights and options will help you know how to handle a dispute in your partnership.
