Evers Law Group : A place where creativity,
experience and agility meet to benefit you
  1. Home
  2.  → 
  3. Business & Commercial Law
  4.  → 2 options when a partner is violating a partnership agreement

2 options when a partner is violating a partnership agreement

On Behalf of | May 7, 2023 | Business & Commercial Law |

Getting into a business with a like-minded person can be rewarding in a number of ways. It can also be a stressful experience, especially if one party is not living up to their end of the deal.

A breach of business partnership responsibilities is not uncommon. When a partner violates a partnership agreement in a significant way, it will likely be helpful if you respond in a thoughtful manner. Subject to the nature of the partnership violation, here are two options that you can consider.

Resolve the dispute through mediation

A breach of a partnership agreement can manifest in a host of ways. Some are more devastating than others. Thus, if your partner is generally sensible and this infraction is likely a matter that you can resolve amicably, you may want to mediate your differences and carry on with the partnership rather than taking them to court. This approach may be especially appropriate if you have a conflict resolution clause in your partnership agreement. Talking out your differences without involving the court can potentially help you to reach a quick and cost-effective settlement so you can focus on growing your business.

Terminate the partnership

Sometimes, a breach can be so severe as to damage trust or lead to significant losses to the business. If the breach in question strains your relationship with your business partner to the point of no repair, you may have no option but to dissolve the partnership. Again, this approach should be guided by the partnership agreement.

Protecting your interests

Differences are bound to happen during the course of the business partnership. With that said, how you respond to disputes largely depends on the nature of your partnership as well as the severity of your dispute. Seeking legal guidance to learn more about California business partnership laws can help you safeguard your rights and interests while you are addressing partnership disputes.