You’ve worked hard to build your business partnership, but sometimes, issues arise that may seem insurmountable. When a partnership dispute emerges, it can be difficult to find a solution that satisfies everyone. With the help of an experienced partnership dispute lawyer, you can learn strategies to overcome these obstacles before they destroy your business. Your partnership dispute attorney will work to resolve problems through mediation in order to achieve your business goals.
Any Partnership Could End Up in a Dispute
A partnership is a business agreement where individuals come together to advance their personal and mutual interests. While this is a noble idea, there is always a risk that partners may not agree on one issue or another. While most disputes can be resolved by coming together and crafting a joint approach to problems, some may threaten to pull the entity apart. Unfortunately, this can happen to any partnership in Dallas, even partnerships between friends or family members.
Common Partnership Disputes
These are some of the most common reasons for disputes in partnerships:
One of the most common causes of disputes is financial obligations and rights, especially when a business is facing financial stress. If the partnership agreement does not clarify how to share liabilities and profits, partners may argue about these issues. Additionally, if any of the partners misappropriated cash or took part in fraud, the other partners may be at legal and moral odds, and litigation may be necessary.
Authority and Company Structure
Every partnership should explain the powers and nature of work for each partner. If partners do not respect each other’s areas of expertise or overstep their mandate, they are likely to cause conflicts between themselves and the rest of the management team. This also causes important tasks not to be accomplished as job descriptions and authority are unclear.
Sometimes one party is overburdened with lots of work, yet the profits are shared equally among all the partners. In such a case, the overburdened partner ends up feeling disgruntled, which may strain the relationship with other partners. At some point, some critical responsibilities may not be attended to when the other partners fail to take part in the running of the business.
Disputes Over Objectives and Goals
Every business should have a single focus. Unfortunately, partners may disagree on the primary goal of the business as each may have their own personal objectives. This affects everything from operations to budgeting and risks splitting the company in half.
If one or more partners reveal confidential business secrets to competitors or the general public, this erodes trust among partners and may split the company. On the other hand, if one partner uses the business information to compete against the business, it may also end in a dispute.
Top-Rated Dallas Partnership Dispute Lawyer Near You
If you have been faced with a partnership dispute, you should consider the help of a competent lawyer to resolve the problem. A top-rated Dallas partnership dispute lawyer is in a position to prevent your partnership from breaking apart by helping you resolve issues in a way that satisfies everyone.
On the other hand, if you decide that the partnership is beyond redemption, your attorney can help with the dissolution of the partnership or the removal of the troublesome partner.
Please do not wait until it is too late. Contact a partnership dispute lawyer in Dallas as soon as a dispute emerges.
Frequently Asked Questions
What things may cause disputes in a partnership?
Some of the things that cause disputes in a partnership include financial impropriety, lack of confidentiality, authority conflicts, and workload disputes. Other issues include differences in goals and objectives and strained personal relationships.
What happens if business partners cannot agree?
If business partners are unable to agree on a given matter, they can seek the help of a mediator or dissolve the partnership. Moreover, they may decide to remove the offending partner or redraft the partnership deed to meet the new goals of the company.
Why do partnerships dissolve?
Partnerships dissolve for a number of reasons. A partnership dissolution may occur if a resolution could not be found that was acceptable to all partners after a partnership dispute. One partner may choose to leave the partnership, or other partners could force a partner out by buying their interest in the company. If a partner dies, the remaining partners must begin a new partnership. Additionally, if one or more partners file for bankruptcy, the partnership will dissolve.
How to avoid a partnership dispute?
Our Dallas partnerships dispute attorneys can help you prevent a catastrophe before it arises. While no plan is fool-proof, we employ advanced remediation and resolution techniques that seek to resolve your goals under consideration of Texas business laws and statutes.
When and where appropriate, we may recommend taking the following steps to avoid or manage partnership disputes, including:
• Documentation that demonstrates an intent to create a partnership
• Drafting contracts that commit relevant partners to money and property contributions
• Determining how profits and losses are shared between the partners
• Devising a responsibility agreement for third-party liability claims that may insulate partners from shared personal exposure
There are multiple opportunities throughout the dispute prevention, management, and resolution process in which you can document and discuss disputes before they turn into unforgivable court actions involving partnership litigation.
Contact Partnership Dispute Lawyer
You don’t have to wait for problems to escalate under your existing partnership agreement in Texas. Consider discussing the details of your partnership with a trusted Dallas partnership disputes attorney at Sul Lee Law Firm PLLC. Schedule an initial consultation by calling (214) 206-4064 or sending us a call-back request via our online contact form.
The Sul Lee Law Firm, PLLC assists clients throughout Dallas and the rest of Texas with their business partnership disputes. We have successfully represented clients in Plano, Richardson, Fort Worth, Irving, Frisco, Carrollton, Taylor, Garland County, and Collin County and advised them in the legal steps during partnership disputes and litigation.