Although people don’t enter business partnerships with an expectation of conflict, legal disputes are common in the business arena. To avoid such disputes and the costly litigation that often accompanies them, business partners often include provisions in their business formation documents that dictate how the partners will resolve conflicts when they arise. However, even partners who anticipate and plan for legal disputes often face serious challenges, making it imperative for business partners to seek legal counsel immediately when a dispute arises. In this article, we examine some common types of partnership disputes.
What is a partnership?
A partnership is an agreement between two or more parties to initiate, manage, and operate a business together. A partnership can be established between businesses, individuals, or any other organizations that seek to work together on a business venture. In terms of its benefits, a partnership is similar to a proprietorship, the primary difference being that the liabilities in a partnership can be limited through the execution of certain types of agreements.
As noted above, there are several types of partnership disputes, all of which typically require legal assistance. Common types of partnership disputes include:
- Breach of contract
- Financial management disputes
- Revelation of confidential business information
- Misappropriation of funds
- Ownership rights disputes
- Shareholder disputes
Each of the above partnership disputes can drain your business of time, money, and resources—especially when handled without the assistance of an experienced business litigation attorney. Therefore, if you are involved in a partnership dispute, you should contact an experienced Georgia business litigation attorney immediately for assistance. An experienced Georgia lawyer will take the steps necessary to ensure that your partnership dispute has a successful resolution.
Resolving Partnership Disputes
When left unresolved, these kind of disputes can take an emotional and financial toll on all parties involved, making it imperative to address such disputes as soon as they arise. Therefore, it’s important to hire a Georgia business litigation lawyer as soon as a dispute arises. In addition, by working with an attorney upon the formation of a partnership, it is possible to avoid a number of common partnership disputes.
Preventing Partnership Disputes
It is possible to anticipate and prevent partnership disputes with a well-drafted partnership agreement. Partnership agreements can address a number of issues, including:
- Rules for decision-making
- How profits and losses will be allocated
- Each partner’s authority and responsibilities
- What each partner will contribute to the partnership
- How to divide the partnership if it ends
- How to resolve disputes
Contact a Georgia Business Litigation Lawyer
If you are involved in a partnership dispute, you need an experienced Georgia business litigation attorney in your corner. At Griffin Durham Tanner & Clarkson, we have extensive experience helping clients with partnership disputes. When you come to us for assistance, we will do everything in our power to ensure that your case has a successful outcome. Please contact us today to schedule a free consultation.