For smaller companies, sole proprietorships may be a viable option. Nonetheless, for mid to large-scale businesses, there typically needs to be more than one partner. A business partnership can be a highly beneficial arrangement, as responsibilities and liabilities are shared. Nonetheless, disputes between partners can arise.
There are several ways to resolve a partnership dispute. Here are a few things to keep in mind.
Can the issue be discussed?
The first step of resolving a dispute is to identify the root cause. Partners can often get there by holding conversations. Sometimes, a talk is enough to resolve the issue. Disputes often arise due to one party feeling unheard.
In some cases, conversations may be held in a slightly more formal manner.
Alternative dispute resolution
Alternative dispute resolution (ADR) is a popular method of resolving partnership disputes. ADR includes things like mediation and arbitration. Mediation is designed to get business partners talking again when communication has broken down. A mediator will facilitate discussion in the hope that a mutually beneficial agreement can be reached.
Arbitration is a little more formal. An arbitrator will listen to both sides of the story, and reach a legally-binding ruling.
Other solutions
Sadly, mutual agreements aren’t always possible. There may be no option but to litigate. Should this happen, it’s important that partners review the partnership agreement and ensure that their rights and obligations have been fulfilled.
There are several ways to resolve a partnership dispute as well as dissolve the partnership if necessary. Seek legal guidance to assess the best option in your circumstances.